All the Commodore 8 bit computers had used the The MOS Technology 6502 Microprocessor developed in 1975 - Created by Chuck Peddle with Bill Mensch and the Team = MSTP - MOS 6502 but the C64 would use the closely related derivative, the 6510 CPU. In January 1981, MOS Technology, Inc., Commodore's integrated circuit design subsidiary, initiated a project to design the graphic and audio chips for a next-generation video game console. Design work for the chips, named MOS Technology VIC-II (Video Integrated Circuit for graphics) and MOS Technology SID (Sound Interface Device for audio), was completed in November 1981. Commodore then began a game console project that would use the new chips—called the Ultimax or the MAX Machine, engineered by Yash Terakura from Commodore Japan. This project was eventually cancelled after just a few machines were manufactured for the Japanese market. At the same time, Robert "Bob" Russell (system programmer and architect on the VIC-20) and Robert "Bob" Yannes (engineer of the SID) were critical of the current product line-up at Commodore, which was a continuation of the Commodore PET line aimed at business users. With the support of Al Charpentier (engineer of the VIC-II) and Charles Winterble (manager of MOS Technology), they proposed to Commodore CEO Jack Tramiel a low-cost sequel to the VIC-20. Tramiel dictated that the machine should have 64 KB of random-access memory (RAM). Although 64-Kbit dynamic random-access memory (DRAM) chips cost over US$100 (equivalent to $292.36 in 2024) at the time, he knew that 64K DRAM prices were falling and would drop to an acceptable level before full production was reached. The team was able to quickly design the computer because, unlike most other home-computer companies, Commodore had its own semiconductor fab to produce test chips; because the fab was not running at full capacity, development costs were part of existing corporate overhead. The chips were complete by November, by which time Charpentier, Winterble, and Tramiel had decided to proceed with the new computer; the latter set a final deadline for the first weekend of January, to coincide with the 1982 Consumer Electronics Show (CES).