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from Wikipedia:

The Amiga 500 – also known as the A500 (or its code name ‘Rock Lobster’) – was the first “low-end” Commodore Amiga 16/32-bit multimedia home/personal computer. It was announced at the winter Consumer Electronics Show in January 1987 – at the same time as the high-end Amiga 2000 – and competed directly against the Atari 520ST. Before Amiga 500 was shipped, Commodore suggested that the list price of the Amiga 500 was 595.95 USD without a monitor. At delivery in 1987, Commodore announced that the Amiga 500 would carry a 699 USD list price.

The Amiga 500 represented a return to Commodore’s roots by being sold in the same mass retail outlets as the Commodore 64 – to which it was a spiritual successor – as opposed to the computer-store-only Amiga 1000.

The original Amiga 500 proved to be Commodore’s best-selling Amiga model, enjoying particular success in Europe. Although popular with hobbyists, arguably its most widespread use was as a gaming machine, where its advanced graphics and sound for the time were of significant benefit.

The Amiga 500 series was discontinued in mid-1992 replaced by the similarly specified and priced Amiga 600, although this new machine had originally been intended as a much cheaper budget model, which would have been the A300. In late 1992, Commodore released the “next-generation” Amiga 1200, a machine closer in concept to the original Amiga 500, but featuring significant technical improvements. Despite this, neither the A1200 nor the A600 replicated the commercial success of its predecessor as, by this time, the market was definitively shifting from the home computer platforms of the past to commodity Wintel PCs and the new “low-cost” Macintosh Classic, LC and IIsi models.

source: wikipedia