In 1987, Commodore introduced the Amiga 500, also known as the A500, as an inexpensive version of a 16 bit multimedia home computer. The goal was to provide a machine that would compete successfully against other 16 bit machines, just as the Commodore 64 had outsold many competitive 8 bit computers. The A500 did sell well against the Atari 520ST and was the low end successor of the Amiga 1000.

The A500 used a Motorola 68000 microprocessor that ran at 7.14 MHz and had 256 KB of ROM and 512 KB of RAM, which was expandable to 9MB. The Amiga 500 used a special system for its RAM configuration. It had 512 KB of Chip RAM, which could be accessed by the sound and video custom chip, and FAST RAM, which could only be accessed only by the CPU.

The Amiga 500 was followed by the Amiga 500+. It doubled the amount of the A500s Chip RAM to 1 MB. Both versions could be connected to a TV set or to a video monitor. The A500 computers were the best selling in the Amiga series. Besides doing well in the United States, they also were popular in Europe. Many users favored the Amiga because, in addition to being inexpensive, it had excellent graphics and sound capability for a computer of its era.