Some time in 1979, Zircon International bought the rights to the Channel F and released the re-designed console as the Channel F System II to compete with Atari’s VCS. This re-designed System II was completed by Nick Talesfore at Fairchild. He was the same industrial designer who designed the original game console. Only six new games were released after the debut of the second system before its death, several of which were developed at Fairchild before they sold it off.
The major changes were in design, with the controllers removable from the base unit instead of being wired directly into it, the storage compartment was moved to the rear of the unit, and the sound was now mixed into the TV signal so the unit no longer needed a speaker. This version also featured a simpler and more modern-looking case design. However, by this time the market was in the midst of the first video game crash, and Fairchild eventually threw in the towel and left the market. A number of licensed versions were released in Europe, including the Luxor Video Entertainment System in Scandinavia (Sweden), Adman Grandstand in the UK, and the Saba Videoplay, Nordmende Teleplay and ITT Tele-Match Processor, from Germany and also Dumont Videoplay and Barco Challenger from the Barco/Dumont company in Italy and Belgium.
Like many other discontinued consoles, the Channel F lives on through homebrew. For example, a 2009 version of Pac-Man was developed and distributed for the Channel F.