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from Wikipedia:

The VIC-20 (Germany: VC-20; Japan: VIC-1001) is an 8-bit home computer which was sold by Commodore Business Machines. The VIC-20 was announced in 1980, roughly three years after Commodore’s first personal computer, the PET. The VIC-20 was the first computer of any description to sell one million units.

The VIC-20 was intended to be more economical than the PET computer. It was equipped with only 5 kB of RAM (of this, only 3583 bytes were available to the BASIC programmer) and used the same MOS 6502 CPU as the PET. The VIC-20′s video chip, the MOS Technology VIC, was a general-purpose color video chip designed by Al Charpentier in 1977 and intended for use in inexpensive display terminals and game consoles, but Commodore could not find a market for the chip.

As the Apple II gained momentum with the advent of VisiCalc in 1979, Jack Tramiel wanted a product that would compete in the same segment, to be presented at the January 1980 CES. For this reason Chuck Peddle and Bill Seiler started to design a computer named TOI (The Other Intellect).

source: wikipedia