After Jack Tramiel left Commodore to join their arch competitor Atari, Commodore wanted and needed a good machine upgrade for the Commodore 64. Bill Herd got the top job as head Engineer to come up with a machine to replace the C64 and also to push the range into the Small Business market.
The C128 was launched In January 1985 at the Las Vegas Consumer Electronics show.
It was the last commercial 8 bit machine released by Commodore.
In C64 Mode, the machine is fully compatible with the Commodore 64.