Kraft Systems
| File:Kraft Systems logo.svg | |
| Company type | Private |
|---|---|
| Industry | Electronics |
| Founded | 1962 in Pasadena, California, United States |
| Founder | Philip O. Kraft |
| Defunct | Template:End date and age |
| Fate | Intellectual property acquired by MicroSpeed, Inc. |
| Headquarters | Vista, California (1969–1994) |
| Products |
|
Number of employees | 250 (1981, peak) |
Kraft Systems, Inc. was a U.S.-based electronics manufacturer located in San Diego County, California, operating from 1962 until 1994. Established by Philip O. Kraft, the company originally specialized in producing transmitters for radio-controlled model aircraft. Carlisle Corporation of Cincinnati, Ohio acquired Kraft in 1972 but continued to operate it as a subsidiary headquartered in San Diego. During the early 1980s, Kraft redirected its efforts toward producing joysticks for personal and home computers, securing a significant position in that market segment. Prior to closing down, the company transferred its intellectual property rights to MicroSpeed, Inc.
Origins, growth, and acquisition by Carlisle (1962–1972)
Philip "Phil" O. Kraft (1926–2006), an avid model aircraft enthusiast and graduate of USC's business program, launched Kraft Systems in 1962 from his garage in Pasadena after several years of designing transmitters for radio-controlled models. His mother, Virginia Kraft, played a key role as comptroller and office manager. By 1964, the business relocated to an industrial facility in South El Monte. The workforce expanded to 80 employees by 1968 with revenues reaching $2 million, a notable increase from $660,000 the previous year.
In 1968, Kraft acquired property in Vista, California to construct a new 15,000-square-foot headquarters which was completed by early 1969. The employee count rose to 125 by mid-1969. By 1970, Kraft had become one of the leading American manufacturers of RC transmitters with sales totaling $2.5 million within a $15 million industry.
Carlisle Corporation purchased Kraft Systems in June 1972 for an undisclosed amount but retained Phil Kraft as president while allowing the company to operate independently as a subsidiary. Production reached approximately 400 RC transmitter units per week by 1977 with a workforce of 150.
Growth and joystick innovation (1972–1994)
Following the acquisition, Kraft broadened its product range beyond hobbyist markets by creating joysticks designed for professional and industrial uses. In 1974, Twentieth Century-Fox commissioned Kraft to develop model helicopters and transceiver equipment utilized for special effects in The Towering Inferno. During the mid-1970s, Kraft also produced specialized transceivers for Henson Associates to control audience participation on The Muppet Show. Entering the early 1980s, the company manufactured remote control devices for heavy machinery and released joysticks tailored for graphic computer workstations in 1981. However, economic downturns coupled with competition from Japanese manufacturers caused the staff count to decline from 250 employees in 1981 to 200 by 1982.
In 1982, Kraft introduced its Premium joystick series targeting home computer users by incorporating patented gimbal mechanisms derived from their industrial control designs. This product line achieved strong market performance and became widely adopted within the personal computer gaming sector throughout the decade. Kraft was among the pioneers offering joysticks compatible with IBM's Personal Computer upon its launch in 1982 and later secured a contract from IBM to supply joysticks for the PCjr model in 1984.
By late 1983, joystick sales had reached $12 million, positioning Kraft as Vista’s third-largest employer with a workforce of around 100 and marking it as the city’s most profitable enterprise. The company initially preserved domestic manufacturing operations and employed local students—including participants from disability programs at Sierra Vista High School. Nevertheless, increasing consolidation within the industry prompted Kraft to begin outsourcing portions of production to East Asia before the decade concluded to achieve cost reductions.
Acquisition by MicroSpeed (1994)
In 1994, MicroSpeed, Inc., known for producing computer accessories such as keyboards, mice, and trackballs, purchased the intellectual property assets of Kraft Systems for an undisclosed amount, effectively concluding Kraft's role as a manufacturing company.