Other machines on the market such as the Atari 800 cost $899
Not in 1985, it didn't. The 800 is a machine from 1979. In 1985 a contemporary machine would be the Atari 65XE for $120.
Yes, it's true that home computers were subject to a pricing war and margins were slim. I don't think margins are very beefy on the cheapest low-end laptops in 2020 either.
