Atari Lynx in the context of 8-bit computing

Atari Corporation was an American manufacturer of home computers and video game consoles. It was founded by Jack Tramiel on May 17, 1984, as Tramel Technology, Ltd., but then took on the Atari name less than two months later when Warner Communications sold the home gaming and computing assets of Atari, Inc. to Tramiel.

Its chief products were the Atari ST, Atari XE, Atari 7800, Atari Lynx and Atari Jaguar; in addition to hardware, the company also published video games for its home systems and also had an in-house development team for Lynx and Jaguar software for porting, or developing original titles such as Warbirds and Trevor McFur in the Crescent Galaxy. In 1996, the company reverse merged with JTS Corp., becoming a small de facto non-operating division which itself closed after JTS sold all Atari assets to Hasbro Interactive in 1998.

In the history of video games, the fourth generation of video game consoles, more commonly referred to as the 16-bit era, began on October 30, 1987, with the Japanese release of NEC Home Electronics' PC Engine (known as the TurboGrafx-16 in North America). Though NEC released the first console of this era, sales were mostly dominated by the rivalry between Sega and Nintendo across most markets: the Mega Drive (known as the Genesis in North America) and the Super Nintendo Entertainment System (known as the Super Famicom in Japan). Cartridge-based handheld game consoles became prominent during this time, such as the Game Boy, Lynx, Game Gear, and TurboExpress.

Nintendo was able to capitalize on its success in the third generation, and managed to win the largest worldwide market share in the fourth generation as well. However, particularly in the lucrative North American market, there was a fierce console war in the early 1990s, which eventually saw Sega taking a market share lead over Nintendo in North America by 1993. Sega's success in this era stemmed largely from its launch of its popular Sonic the Hedgehog franchise to compete with Nintendo's Super Mario series, as well as a very stylized marketing campaign aimed at American teenagers. Several other companies released consoles in this generation, but none of them were widely successful. Nevertheless, there were other companies that started to take notice of the maturing video game industry and begin making plans to release consoles of their own in the future. As with prior generations, game media still continued to be distributed primarily on ROM cartridges, though the first optical disc systems, such as the Philips CD-i, were released to limited success. There was additionally competition with games on home computers such as the Amiga, Atari ST, Apple IIGS, and IBM PC compatibles, especially in markets like Europe. As games became more complex, concerns over violence in games like Mortal Kombat and Night Trap led to the creation of the Entertainment Software Rating Board.

Warbirds is a 1991 first-person combat flight simulation video game developed and published by Atari Corporation in North America and Europe exclusively for the Atari Lynx. Taking place in the 1910s during World War I, players assume the role of a rookie aircraft pilot from the Army Air Force who joined the titular squadron taking control of a prebuilt biplane in order to win the war against the enemies. Its gameplay mainly consists of dogfights against either AI-controlled opponents or other human players using the Lynx's ComLynx system, with a main four-button configuration.

Warbirds was written and designed by Atari veteran Robert Zdybel, who dedicated the project to his father. The game garnered positive reception from critics and reviewers alike who praised the presentation, pseudo-3D visuals, sound design, controls and gameplay. Its multiplayer support received unanimous praise but the single-player offering was noted to be one of the title's negative points. It also served as an inspiration for Beyond Games' 1993 BattleWheels.