The Commodore 16 was a home computer made by Commodore with a 6502-compatible 8501 CPU, released in 1984. It was intended to be an entry-level computer to replace the VIC-20 and it often sold for 99 USD. A cost-reduced version, the Commodore 116, was sold only in Europe.
Outwardly the C16 resembled the VIC-20 and the C64, but with a dark gray case and light gray keys. The keyboard layout differed slightly from the earlier models, adding an escape key and four cursor keys replacing the shifted-key arrangement inherited from the C-64 and VIC. Performance-wise located between the VIC-20 and 64, it had 16 kilobytes of RAM with 12 KB available to its built-in BASIC interpreter, and a new sound and video chipset offering a palette of 128 colors (in reality 121, since the system had a 16 base colors and 8 shades but black always remained black, with all 8 shades), the TED (better than the VIC used in the VIC-20, but lacking the sprite capability of the VIC-II and advanced sound capabilities of the SID, both used in the C64). The ROM resident BASIC 3.5, however, was more powerful than the VIC-20's and C64's BASIC 2.0, in that it had commands for sound and bitmapped graphics (320×200 pixels), as well as simple program tracing/debugging.
The C16 was a flop in the US and was discontinued within a year, but it sold reasonably well in Europe as a low-end game machine (over 90% of all C16 software was produced by European developers) and in Mexico as well.
Source: Wikipedia, "Commodore 16", available under the CC-BY-SA License.