The new Atari 1050 disk drive matched the new high-tech, low profile line of Atari XL home computer systems. The original Atari 810 could hold single density data (88K out of 100K diskettes) which was standard.

The new Atari 1050 disk drives were DUAL-DENSITY disk drives and could use the older Atari 810 diskettes, but could also hold data in a new Enhanced Density mode of 127K. Although the standard for disk drives was 180K, this additional storage was welcomed by Atari users who bought the disk drives.