The PS/1 line was targeted at new computer users and was sold in consumer electronics stores, along with similar systems from Compaq, Hewlett-Packard, Packard Bell, and others. U.S. PS/1 models came with a built-in modem, allowing users to access online IBM help services provided through partnerships with Prodigy and Quantum.

Like the PCjr, the name PS/1 suggested a more limited machine compared to IBM's business-oriented PS/2 line. However, unlike the PS/2, the PS/1 was based on an architecture closer to the AT and compatible systems, using ISA, VGA, and IDE, for example.

While the initial models used custom-designed components and design, later desktop and tower models primarily used standard components. The earlier models included a ROM with IBM's PC DOS and a graphical shell, but the system was compatible with other DOS implementations, and the shell could be installed on the hard drive.

The original PS/1 (Model 2011), based on a 10 MHz Intel 80286 CPU, was designed for easy installation and use. It had 512 KB of built-in memory (expandable to 1 MB or 2.5 MB with proprietary memory modules), a built-in modem (only in U.S. models), and an optional 30 MB or 40 MB hard drive. IBM also released a 5.25-inch diskette drive unit, a $169 ISA Adapter Card Unit (ACU) for installing third-party expansion cards, and a $995 CD-ROM drive, based on a Western Digital SCSI chip, which fit under the case. Some of the cheaper PS/1 models had limited expansion capabilities as they lacked standard ISA expansion slots.