The Tandy 200 has more memory and a larger screen compared to the predecessor. The programs were contained in a ROM and were a telecommunication program (telcom) using the built-in modem, MSPLAN spreadsheet (light version of Multiplan), text editor, calendar, address book and BASIC Programming Language.

Much of this software was written by Bill Gates, and this is also the last computer that Bill Gates wrote software for himself.

The machine uses an Intel chip (80C85A) which can also be found on the Intel MCS85.

The Model 200 never had the sales successes like the Tandy 100 and 102, mainly because the first MS-DOS portable machines arrived around this time.