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- [***][6/5/84][***]
- ATARI GETS TOUGH:
- Within two weeks of introducing new video games and a new video game
- console, Atari has laid off some 700 workers (May 30) at its Sunnyvale
- headquarters. By July 1, Atari will have only 1,000 people left, compared
- to 7,000 in January of 1983. In light of last year's loss of $539 million
- by the Warner-owned company, Atari Chairman James Morgan, by July, will have
- slashed the company's overhead by 75% compared to one year ago.
- Atari will also pull out of a joint deal with Wong Electronics of Hong Kong
- where the Atari 800XL home computer was manufactured. All production
- will move to Taiwan. Among those laid off is Gary Summers, chief designer
- for Atari's Semiconductor Group; he was responsible for designing ICs
- for Atari's future products. Speculation has it this latest wave of cuts
- is to satisfy N.V. Philips, a Dutch company seeking to buy up to 50 percent
- of Atari.
- ----
- CONTACT: BRUCE ENTIN
- ATARI
- SUNNYVALE, CA.
- 408-745-4142
- ----
- [***][6/5/84][***]
- ADAMS WITH SOFTWARE:
- In a move to boost sales of the Adam home computer, Coleco is packaging
- 32 software programs with the $700 machine. The company would not say
- what programs will be bundled with the Adam, only that the special offer
- will continue through September and will be the subject of a major advertising
- campaign this summer. Meanwhile dealers report Coleco is offering to
- allow them to sell Adam computers on consignment; the money won't be due
- to Coleco until the Adam computers are sold. It's too late for this
- strategy to work with Sears, Roebuck & Company. Sears announced it stopped
- selling Adam computers in May. A Sears spokeswoman reportedly said, "We
- are trying to tell consumers that we prefer that they wait." The "wait"
- apparently refers to an improved Adam computer which is undergoing testing,
- but in the meantime, America's largest retail department store chain is out
- of reach to Coleco.
- ----
- CONTACT: COLECO INDUSTRIES
- WEST HARTFORD, CONN.
- 203-278-0280
- ----
- [***][6/5/84][***]
- WEDNESDAY MORNING MASSACRE:
- As Sorcim, maker of SuperCalc, was sold to Computer Associates International
- during the last week of May, the axe fell on 30 employees, including top-
- ranking company executives. The president, two vice presidents and several
- department heads were among the casualties in the $17 million deal.
- Nobody at Sorcim was available for comment (PR director Hal King was
- nowhere to be found and is believed to be among the fired.) The new
- Sorcim will be called Sorcim/IUS (after Computer Associates' division
- called Information Unlimited Software) and be primarily involved in
- research and development of new software products for Computer Associates.
- Computer Associates made $84.5 million in sales last year.
- ----
- CONTACT: SORCIM
- SAN JOSE, CA.
- 408-942-1727
- ----
- COMPUTER ASSOCIATES
- JERICHO, NEW YORK
- ----
- [***][6/5/84][***]
- SOFTWARE FATES:
- A couple items of note--the companies selling the most software in 1983 in
- terms of dollars rank as follows, according to Dataquest: MicroPro
- ($60 million), Microsoft ($55 million), Lotus ($53 million), Digital
- Research ($45 million), Visicorp ($43 million), Ashton-Tate ($35 million).
- Despite last year's success, Visicorp is quickly becoming one of this
- year's casualties. Last week it announced a major layoff and there was
- talk of Chapter 11 proceedings. What's clear is that increasingly either
- big marketing money or undeniably good, easy-to-use product are the
- keys to success for software firms. -More disturbing, the limits
- of easy-to-use products written for the IBM PC may have been achieved.
- That's the comment from Jonathan Sachs, VP of R&D for Lotus. Given the
- limits of microprocessors and memories, many software firms are floating
- about looking for new hardware around which to design their products.
- ----
- [***][6/5/84][***]
- "KANGAROO COURT":
- Apple has scored two more victories in its battle against counterfeit
- computers. An Australian federal court reversed an earlier decision
- in which a judge ruled Apple's chips, containing programs, were
- not entitled to copyright protection. In this latest appeal by
- Apple, the judge says the chips are protected by the company's
- copyright. The decision comes from a suit brought by Apple
- against a Taiwanese company, maker of the Wombat computer, which
- was distributed in Australia. The ruling means the maker of the
- Wombat must now come up with a different operating system. The suit is
- among some 30 Apple has filed across the globe. Meanwhile in Philadelphia,
- a man said to have been importing counterfeit Apples into the U.S.
- from Taiwan plead guilty to charges on May 30. Two alledged accomplices,
- who previously plead guilty were sentenced to 30 days in prison and fined
- $15,000 each.
- ----
- CONTACT: APPLE COMPUTER
- CUPERTINO, CA.
- 408-973-2042
- ----
- [***][6/5/84][***]
- NATIONAL SEMI SCAM:
- National Semiconductor's chips are in virtually every major weapons
- system contracted by the Defense Department. In that light, the government's
- move to ban National Semi from future contracts is serious indeed.
- The Defense Logistics Agency told NSC on May 29 that it will be "debarred"
- from selling chips to military contractors. The announcement follows a
- three-year investigation into chip-testing fraud within National Semi. NSC
- sells some $80 million worth of chips to the government each year.
- ----
- CONTACT: PETER SPRAGUE, CHAIRMAN
- NATIONAL SEMICONDUCTOR
- SANTA CLARA, CA.
- 408-721-5000
- ----
- [***][6/5/84][***]
- IN BRIEF--
- BERKELEY, CA.:
- ADAM OSBORNE says his new book that details the rise and fall of
- Osborne Computer (and points fingers at those responsible) will be
- published August 1. Excerpts will appear in INFOWORLD during the
- first week of July. Its controversial content has made the book a
- hot potato for publishers; Osborne plans to publish it himself.
-
- -DAYTON, OHIO:
- NCR CORPORATION contends it will be "a major participant in the
- personal-computer business." To facilitate that projection, NCR has
- formed a dealer network and software development and publishing facility.
- Its IBM-compatible computer was unveiled at Comdex.
-
- -SANTA CLARA, CA:
- PC-SIG of Silicon Valley is offering a $4.95 directory of public-domain
- software for the IBM PC. Ten diskettes cost $59, the full set runs
- $814. To get the directory write PC-SIG, Suite 130J, 1556 Halford Ave.,
- Santa Clara, Ca. 95051
-
- -MOUNTAIN VIEW, CA:
- ACTIVISION is making inroads to the Japanese market with a recent long-
- term licensing agreement with a Japanese video game distributor. Pony,
- Inc. of Tokyo will distribute Activision's MSX-based video game software.
- Analysts say the market for MSX-based game software will stand at one
- million units sold within a year.
-
- -TOKYO, JAPAN:
- Nippon Telegraph and Telephone has come up with an encoding device for
- computer data that's far less expensive than the American equivalents.
- Designed to thwart high-tech data thieves, the device is priced at
- $1,300.
- -
- [***][6/5/84][***]
- PIZZA PALS:
- A company that was once sued by Pizza Time Theaters for breach of contract
- may be coming to its rescue. Brock Hotels Corp., which operates
- a series of pizza-and-robot entertainment arcades called ShowBiz
- Pizza Places, was sued in 1980 for alledgedly violating its franchise
- contract with Pizza Time. Four years after Brock paid $750,000 to
- Pizza Time to settle the spat, it's now offering to buy some of the
- bankrupt Pizza Time's 243-store chain. Pizza Time, founded by Nolan
- Bushnell, lost $81 million last year; Show Biz lost less than $10
- million and its president Paul Pendergant contends, "there's only
- room for one good chain, not two."
- ----
- CONTACT: PIZZA TIME THEATER
- SUNNYVALE, CA.
- 408-734-8731
- ----
- BROCK HOTELS CORP.
- DALLAS, TEXAS
-