The Commodore 64, introduced in 1982, was a cheap and powerful home computer that became the best-selling desktop in history, with 12.5 million units sold. Its low price was due to an unusual chip selection, including a sound chip designed for synthesizers and a graphics chip for video games. Despite being dismissed as a "game machine," the C64's gaming capabilities were serious, moving video gaming from arcades to homes.

In 1986, the Commodore 64C came with a telecom program that connected users to Quantum Link (Q-Link), an online service offering chat, forums, and games at lower prices than competitors. Q-Link's most revolutionary feature was Habitat, a graphical virtual world developed by Lucasfilm, which allowed real-time interaction among users and is considered a precursor to modern MMOs.