Article from Colecoboxart.com

A second Super Game module was also rumored. It used a format called CED, using video records - vinyl records with much finer grooves, stored in cases so as to avoid contact save by the needle of the system. In an interview with Ralph Baer, who worked on this system, he said it was really zippy and in some respects better than CDROM.

RCA CEDCED stands for Capacitance Electronic Disk system, and was pioneered by RCA. RCA used this technology in all of their CED video disk players, which competed with the Laserdisc format until 1985 when RCA discontinued all of its players. Coleco chose the CED format because RCA could create a computer controllable random access machine that was very affordable. The Coleco CED system would have come with two major components: the Coleco "controller" Module (#3) that plugs into the front of the system, and the RCA/COLECO CED player that connected to the Module and the T.V. set. Reportedly the price would be around $395-$495 for a complete set-up. Interestingly, the Coleco CED system would still play all of RCA's movie and music video disks, which was a big selling point for RCA. So you would have a Video Quality arcade system, and movie player - all in one.

From Video Games and Computer Entertainment, June 1991: 'Talk of the future reminds Baer of the aborted, ahead-of-its-time project he launched in 1982. The ideal interface, the ColecoVision video game console and an RCA CED player. "Things advanced to the point that RCA actually made a few CED peripherals. Then along came the ADAM computer and ended it all. What I'd like to see is not going to happen." He'd like to see CED revived, instead of the industry going to CD. He worries that CD will fail to deliver the full-motion video that people expect.'