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from Wikipedia:

The Atari XE Video Game System (Atari XEGS) is a video game console released by Atari Corporation in 1987. Based on the Atari 65XE computer, the XEGS is compatible with the existing Atari 8-bit computer software library.

Additionally, it is able to operate as a stand alone console or full computer with the addition of its specially designed keyboard. In computer mode, it’s able to use the full line of peripherals released for the 8-bit computer line. Shipping in a console with joystick only and a deluxe model with a separate keyboard, joystick and light gun, the console failed in the marketplace, and was succeeded by the Atari Jaguar.

The XEGS shipped with the Atari 8-bit version of Missile Command built in, Flight Simulator II, and Bug Hunt which was compatible with the light gun. As the XEGS is compatible with the earlier 8-bit software, many games released under the XEGS banner were simply older games rebadged, to the extent that some games were shipped in the old Atari 400/800 packaging, with only a new sticker to indicate that they were intended for the XEGS.

The XEGS was released in a basic model with a grey colored standard CX-40 joystick, and the deluxe model bundled with the joystick and two peripherals: a keyboard, which allowed it to function as a home computer, and the XG-1 light gun – the first light gun produced by Atari, which is also compatible with the Atari 7800 and Atari 2600. Packages containing only a console and a joystick were also available, with the keyboard and the lightgun available separately.

source: wikipedia