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- [***][6/12/84][***]
- MAKING SENSE OF CES:
- The Consumer Electronics Show in Chicago drew some 250 exhibitors who
- trotted out everything from new computers to dashboard video disk players.
- Among the highlights: Commodore's long-awaited Plus/4 computer, a
- 64K machine with four internal programs--a word processor, database
- manager, graphics and spreadsheet. The most astounding feature is
- the price--less than $300. The worst feature--the Plus/4 won't run
- the same programs as the Commodore 64. However, another new computer
- with 16K of RAM and a price tag of $100 was introduced that will run
- "64" software. It's called the "Model 16" and replaces the "VIC-20".
- Both machines are expected to be available for the lucrative Christmas
- season. Also of note: Atari has "preannounced" plans for a new "partly
- IBM compatible" computer. The still-unnamed unit will have a built-in disk
- drive, 64K of RAM, an internal modem and a speech synthesis chip.
- It's supposedly a replacement for the dumped 1450XL machine.
- Only software developers have seen it; the computer will be out "in the
- fourth quarter." (More on Atari in Item #2.)
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- CONTACT: COMMODORE INTERNATIONAL
- WEST CHESTER, PA.
- 215-431-9100
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- [***][6/12/84][***]
- SOFTWARE GLUT?
- Roaming through the CES is a sensory overload, to say the least, and that
- may be why a glut of published articles are addressing the glut of software.
- Granted, many of the programs offered at CES were innovative, but some
- were unique. For instance, the Learning Company's "Robot Odyssey",
- an educational game for adolescents that teaches how to assemble a
- robot. "Mindlink" from Atari, which will be marketed later this
- year, incorporates a headband in which the emotions of the player
- control the action on the screen. It will sell for $79. Atari's
- Milestone and Futuremakers series, also available late this year,
- will feature science, math and health games. Dr. Lee Salk
- has teamed up with Atari to produce "Peek A Boo", one of the first
- cartridge-based games for very young children and designed to teach
- children dimensions, shapes and colors.
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- CONTACT: ATARI
- SUNNYVALE, CA.
- 408-745-4142
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- [***][6/12/84][***]
- JAPAN WHERE ARE YOU?
- The planned emergence of Japanese MSX-based computers at the Chicago show
- failed to materialize. Analysts were suprised and now say the wave of
- Japanese home computer may arrive early next year. The MSX-based computers
- are a big hit in Japan where 200,000 units have sold at $400 each.
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- [***][6/12/84][***]
- IBM THROWS ANOTHER ONE:
- Setting the computer industry on its ear, IBM announced 10-23 percent
- price reductions on the IBM PCjr, IBM Portable, IBM PC and XT. Specifically,
- the PC will cost $2,520 (compared to $3,270), the PCjr will cost $1265
- (compared to $1355), the Portable is reduced to $2595 from $2795.
- The XT, with its monochrome monitor, is priced at $4,920 (down 18%).
- Dealers of the PCjr will also have until September to pay IBM for sold
- computers, a move which relaxes pressure on dealers to move the so far
- unmoveable product. No upgrade to what some term the "dismal and awkward"
- keyboard were announced. Meanwhile, a new version of the PC, with four
- times more memory, one disk drive and a price of $1,995 was announced.
- It is a simplified version of the PCXT. The XT, according to IBM will
- be upgraded to a model with twice the memory. The price reductions,
- though expected by many analysts, sent shivers through the makers of
- IBM-compatibles.
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- CONTACT: IBM
- BOCA RATON, FLA.
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- [***][6/12/84][***]
- CLONE TERROR:
- Although Compaq's president Rod Canion was quick to announce Compaq has
- no plans to participate in an IBM-compatible price war, (its basic Compaq
- sells for $2,995), the story may be different at Eagle Computer. As
- Eagle struggles to repay $11 million in unsecured debts, it is now faced
- with the spectre of a price war with IBM. Eagle executives did not
- return my calls for comments, but analysts say the company may be in
- deep trouble unless it reduces the price of its computer, which at this
- point is higher-priced than IBM's. Perhaps the best remark came from
- a North Star Computer spokesman who called the IBM price reduction "the
- kiss of death by slow torture for IBM-clone companies." North Star of
- San Leandro, Ca. makes the "multi-user" Dimension computer which it claims
- will be the only alternative to IBM's PC. Without a wince, North Star
- even raised the price of the Dimension by five percent to $7350.
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- CONTACT: EAGLE COMPUTER
- LOS GATOS, CA.
- 408-395-5005
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- [***][6/12/84][***]
- REVISING ESTIMATES:
- The New York Times' article of June 4 created quite a stir in computer
- circles. The Times' David Sanger quoted InfoCorp, a market research firm
- in Cupertino, Ca., as saying under-$1,000 computer sales have fallen 20
- to 30 percent below last years' levels. Last year InfoCorp predicted sales
- of 4.6 million home computers in '84, today it says half that amount will
- enter U.S. homes. As it turns out, InfoCorp was talking about under-$500
- computers, not more expensive machines. But there's still a kernel of
- truth in the prediction. Some suggest the American public is
- getting more sophisticated about computers, opting for more expensive,
- better equipped models. Projected sales rates for home computers were
- placed at 130% last year, today the figure is 17% growth each year.
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- CONTACT: INFOCORP
- CUPERTINO, CA.
- 408-973-1010
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- [***][6/12/84][***]
- CENSUS ON COMPUTERS:
- It's something we've known for a long time, but finally the Census Bureau
- made it official: the number of U.S. computer manufacturers has tripled
- since 1972. There were 1566 companies making computers in 1982. California,
- Massachusetts, New York, Texas and Minnesota, in order of manufacturing
- strength, accounted for half the employment of 339,600 in the computer industr!
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- [***][6/12/84][***]
- HARD TIMES FOR MICROPRO:
- 100 people were laid-off at MicroPro (6/7), maker of "Wordstar", "MailMerge"
- and "ProjectStar". A MicroPro spokeswoman says the lay-off represents 20% of
- the staff of 500. Poor earnings are credited for the staff reduction.
- MicroPro's net income for the third quarter will be "substantially less"
- than $2 million, according to the spokeswoman. Who's to blame? Competition
- from other software firms and a slowdown in sales.
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- CONTACT: WINK GRELIS, Marketing Director
- MICROPRO
- SAN RAFAEL, CALIFORNIA
- 415-499-1200
- [***][6/12/84][***]
- GOING ONCE, GOING TWICE:
- Ask Computer Systems is auctioning off licenses for its software following
- a decision to get out of the software business. Licenses to "Accounting
- Plus" which was ranked as the fourth best-seller among accounting programs
- last month, will go to the highest bidder. Ask Computer Systems laid-off
- 35 people, closed down its Folsom subsidiary, and plans to lose almost
- a million dollars from the affair. The software subsidiary was purchased
- by the computer-maker last year, formerly it was Software Dimensions.
- The purchase ended up costing the company $60,000 a month, and says Sandra
- Kurtzig, CEO, "We should have bought the product, not the company."
- Want to make a bid? The auction will be held at Arthur Young & Co. in San
- Jose, Ca. on June 27 at 5 p.m.
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- CONTACT: ASK COMPUTER SYSTEMS
- LOS ALTOS, CALIFORNIA
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- [***][6/12/84][***]
- POST OFFICE QUITS:
- If you've been using E-Com for your electronic mail, you may want to
- switch. Despite objections from Postmaster General William Bolger (who
- says the service will not be abandoned), the Service's Board of Governors
- voted (6/7) to call it quits. Even President Reagan wants the Postal
- Service out of electronic mail. The Board is essentially bowing to lobbying
- pressure from competing services: MCI, Compuserve, Western Union, ITT and
- GTE. What will happen next is uncertain. E-Com has never made much
- money and the order requires the service to end within 30 days.
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- [***][6/12/84][***]
- IN BRIEF--
- APPLE COMPUTER has introduced "MacCollege", a program designed to assist
- developers in writing programs for the MacIntosh computer. The three-day
- sessions will be held at Apple's Cupertino offices between June and November.
-
- -"FIRE IN THE VALLEY", a new book by Paul Freiberger and Mike Swain is
- getting rave reviews from computer luminaries. According to columnist John
- Dvorak, George Morrow, Steve Wozniak and Harry Garland (of Cromemco) call
- it "great!"
-
- -JACK TRAMIEL, the original founder of COMMODORE will start his
- own computer company, according to industry sources. He's reportedly
- looking for $110 million in venture capitol for a new company,
- rumored to be called "Tramiel Technology Limited". The company
- will employ his sons Sam and Leonard, among others, and speculation has
- it Tramiel will produce a MacIntosh-like computer for Far East
- markets.
-
- -UNITED AIRLINES is testing computer games on its San Francisco to San
- Diego flights. Made by Altus Corp. of San Jose, the devices replace
- fold-down meal trays and feature checkers, backgammon and poker, among
- other games. If the games are successful, United will install them on
- all 329 planes in the fleet.
-
- -FRANKLIN COMPUTER has named Morton David its new CEO, replacing Avram
- Miller, who resigned in April. Miller left the Pennsauken, N.J. firm
- saying Franklin was not destined to become the "large, broadly based"
- computer company he had hoped it would.
-
- -DIGITAL EQUIPMENT CORPORATION is feeling generous. It is spending $35
- million to help the University of Houston set up a campus computer network for
- instruction, research and administrative duties. Now, the U of H just
- has to raise a matching $35 million....
-
- -OXFORD UNIVERSITY PRESS of London is undertaking the massive job of placing its
- 13-volume dictionary on an IBM mainframe. Once the files are loaded, Oxford
- plans to make it available to the public through online database, chips,
- magnetic tape or laser video disk.
- -
- [***][6/12/84][***]
- TUPPERWARE PARTIES:
- Tandy Corporation has a novel approach to marketing: in-home demonstrations.
- The firm will send representatives to your home with selected hardware
- and software to "allow the entire family to participate in evaluation
- and selection". The test of this "Tupperware-party" type scheme will be
- conducted in 13 cities in July and will supposedly be expanded nationwide
- within three years. The demonstrations will be free.
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-