The history of the Coleco Telstar began when Coleco acquired the General Instrument AY-3-8500 chip in 1975. This chip played a significant role in the development of video and ball games by supporting multiple game variants, including tennis and handball. Coleco brought the Telstar to market in 1976, where it was enthusiastically received. Up until 1978, Coleco produced several variants of the Telstar, each with unique features and game possibilities.

The use of the Telstar was straightforward; it could be directly connected to the television, where players could use buttons and dials to play the games. The Telstar brought the video game experience into living rooms and laid the foundation for the popularity of home consoles. The simplicity of the device and its all-in-one functionality made it accessible to a wide audience, from children to adults.

Technically speaking, the Coleco Telstar was not particularly complex. It was able to function within the same limited possibilities of the PONG structure due to the single chip it employed, which managed both the video output and controls for the games. Nevertheless, it was one of the best-selling video game consoles of its time, partly thanks to its relatively low price and simple design.