A detailed comparison between an argon ion laser system utilizing the hollow cathode discharge (HCD) and one employing a conventional, externally heated oxide cathode, but with identical geometry, has established that there are no significant differences in their microscopic behavior, and that the excitational processes occurring in the two systems are the same. A comparison of the over‐all efficiency of the two systems operating at the same output power level shows that when bariated tungsten cathode cylinders are used in the HCD, this device does not require greater input electrical power than the conventional device. It is further shown that operation of the HCD laser does not require a continuously flowing gas system as has previously been reported. This study shows the HCD to be an attractive alternative to conventional discharge geometries for ion laser systems.