Atari released its upgraded ST model STE in late 1989 – E standing for Enhanced. The enhancements were especially focussed on graphics and audio. Visual capabilities gained a boost from a larger color palette of 4096 colors and a new dedicated chip, Blitter, which enabled fast sprite manipulation.
Sound was also updated with the addition of two digital PCM channels that were capable of producing stereo sound at 6.25, 12.5, 25, or 50 KHz. STE also introduced a genlocking feature which enabled the syncing of external video sources, and an updated version of the TOS operating system.
Atari Corp. provided STE flyers and advertisements with an unusual entertainment value and thus generated attention among the computer youth. It was sorely needed at the time. In Germany, but also in the Netherlands, Belgium, Austria and Switzerland, the company mainly appealed to professional users and had lost market share in the games sector.