Dycam Model 1 (Logitech FotoMan)

• It produced only black/white photos with 256 gray levels;
  
• It had only 1Mb internal RAM;
  
• It had fixed focus f4.5 lens;
  
• It did cost $980 (£499)!
  

Still, it was fully digital (not analog like Sony Mavica)! You can find a nice hand-on experience description on John Henshall web-site.

P.S. Kodak's DCS100 appeared half a year later.