Autopsy:

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from Wikipedia:

Jack Tramiel’s Atari Corporation produced the final machines in the 8-bit series, which were the 65XE and 130XE (XE stood for XL-Expanded). They were announced in 1985, at the same time as the initial models in the Atari ST  series, and resembled the Atari ST. Originally intended to be called the 900XLF, the 65XE was functionally equivalent to the 800XL minus the PBI connection.

The 65XE (European version) and the 130XE had the Enhanced Cartridge Interface (ECI), a semi-compatible variant of the Parallel Bus Interface (PBI). The 130XE shipped with 128 KB of memory, accessible through bank-selection.

An additional 800XE was available in Europe (mostly Eastern Europe), which was essentially a 65XE repackaged in order to ride on the popularity of the original 800XL in Europe. Unfortunately, the 65XE and 800XE machines sold in Eastern Europe had a buggy GTIA chip, specifically those machines made in China in 1991.

Finally, with the resurgence of the gaming industry brought on by Nintendo, Atari Corp. brought out the XE Game System (XEGS), released in 1987. The XE Game System was sold bundled with a detachable keyboard, a joystick and a light gun (XG-1), and a couple of game cartridges (Bug Hunt and Flight Simulator II). The XE Game System was essentially a repackaged 65XE, and was compatible with almost all Atari 8-bit software and hardware as a result. Bad marketing and a lack of newer releases hampered sales.

On January 1, 1992, Atari corp. officially dropped all remaining support of the 8-bit line.

source: wikipedia