Trip Hawkins, 3DO CEO attacks competition? (Jan.14,1994)
From: Atari SIG (xx004@cleveland.Freenet.Edu)
Date: 02/20/94-12:39:07 PM Z
From: xx004@cleveland.Freenet.Edu (Atari SIG)
Subject: Trip Hawkins, 3DO CEO attacks competition? (Jan.14,1994)
Date: Sun Feb 20 12:39:07 1994
SILICON TIMES REPORT
====================
January 14, 1994 No. 1003
======================================================================
Trip Hawkins, 3DO's CEO, Attacks (??) the Competition?!
Consumer Electronics Show
3DO On The Attack 01/07/94 LAS VEGAS, NEVADA,
U.S.A., 1994 JAN 7 (NB) -- Trip Hawkins, CEO of 3DO, went on the attack
against the competition in the crowded video game market during a press
conference at the Winter Consumer Electronics Show. Hawkins claimed that
over 10,000 3DO machines were sold last year, claimed he'll have 30,000
retail outlets and over 100 titles by the end of this year, and
pooh-poohed the competition.
He called the proposed Sega and Nintendo CD-based game machines "toys"
and their licensing schemes "fascistic." He called the Philips CD-I
system "out of gas." He claimed 3DO systems are 120 times faster than
PCs, and more likely to be used in living rooms anyway. The Atari
Jaguar, he claimed, is a cartridge-based toy, not even comparable to
3DO's machine. 3DO, of course, doesn't sell a machine. It licenses a
design for a machine. So far, only Matsushita, through its Panasonic
label, sells a 3DO machine in the US. Hawkins said AT&T will sell one,
however, in a few months, and will include a modem supporting its
VoiceSpan technology with it, so players can talk while their game
machines interact. He said Sanyo will launch a 3DO machine this summer,
and claimed a fourth, unnamed company will also be shipping a product by
year-end.
All told, Hawkins said, 3DO has sold 6 hardware licenses, over 500
software licenses, 184 in the last 90 days, and has shipped 174
development kits. While just 18 titles are out now, Hawkins said 219 are
in development,in a variety of categories. Hawkins also claimed he's not
discouraged at all by the slow ramp-up of sales. "More 3DO players were
sold last year than VCRs in their first year, and more 3DOs were sold in
the last 90 days than CD players were in their first 90 days on the
market." He scoffed at the idea that no hot titles are available, noting
that Lotus 1-2-3 came out 18 months after the IBM PC, and Sonic the
Hedgehog came three years after Sega's Genesis hit the market. Hawkins
also got into the question of rating systems.
The Software Publishers' Association and Sega are planning ratings
systems, the Motion Picture Association has been solicited to work on
one, and lawmakers are warning of dire consequences if an effective
system isn't found soon to keep violent and sexually explicit titles away
from youngsters. Hawkins, of course, claimed he has one, based on the
motion picture system. A green circle with an E will denote titles for
anyone, yellow stickers with the numbers 12 or 17 will denote games
parents should worry about, while a red stop sign with the letters AO
will denote an adults- only title. This, of course, is nearly identical
to the G, PG, R, and NC-18 system used by movies. "We'll support any
other rating system," Hawkins added, "but we're launching this right
away."
Despite widespread skepticism by analysts and the press, the recent
hammering of 3DO stock and negative comments by CNBC's Dan Dorfman about
the firm's prospects, Hawkins, sporting a hairdo like New York Knicks
coach Pat Riley, remained unflappable. "We went public at $15, went up,
then down, and we're at $23. Obviously we don't have fundamentals --
we're a concept stock. It's easy for competitors to spread
misinformation about us." "We captured the beach," Hawkins concluded,
"but it's going to be a long war."
Press Contact: Cindy McCaffrey, The 3DO Company, 415-261-3236)
Atari's Don Thomas, in a totally unofficial role, decided to pick apart
Hawkins' press conference, as we see below.
This one will be fun. Keep in mind that these are my personal opinions
and not those expressed by Atari Corporation.
<<Hawkins claimed that over 10,000 3DO machines were sold last year>>
I suspect "sold" means "delivered to retailers" or "licenced for
manufacture". I would prefer to hear that 10,000 units were in
households before I personally felt that number had much value.
<<He called the proposed Sega and Nintendo CD-based game machines
"toys">>
Of course they are toys. A Lamborghini Countach is a toy too. By
definition, the 3DO is a more expensive toy that Sega, Nintendo, Atari
(or anyone else, I guess, except maybe the Lamborghini Countach).
<<He called the Philips CD-I system "out of gas.">>
That's a real technically-defined statement coming from a CEO...
"out-of-gas"?
Seems to me odd that the best defense a CEO has of his product is to
refer to the competition with subjective name-calling.
<<The Atari Jaguar, he claimed, is a cartridge-based toy, not even
comparable to 3DO's machine>>
If the 3DO is so flexible, then why can it not use cartridges for those
who want to? Quite frankly, firearms use cartridges and, although that is
admittedly a far-fetched comparison, it makes my point clear... Just
because something accepts cartridges, that doesn't mean it must be
classified only as a toy.
<<All told, Hawkins said, 3DO has sold 6 hardware licenses...>>
Sony sold a lot of BETA technology licenses in the U.S. too.
<<... and has shipped 174 development kits>>
I'll make it 175 for them if the price is cheap enough. These kits are
the only way potential developers can determine feasibility.
<<Hawkins also claimed he's not discouraged at all by the slow ramp-up of
sales. "More 3DO players were sold last year than VCRs in their first
year...">>
The reason VCRs sold slow in their first year was one of the main reasons
3DO is selling so slow. VCRs sold for upward to $1,200 or more if memory
serves me right. If Hawkins doesn't "Trip", and follows his own example
to a rational conclusion, then he's admitting that 3DO systems won't have
a prayer until prices show the same dramatic decline that VCRs did before
people really started buying those up. (I wonder if Hawkins has
professional people review his speeches before he makes them. ((Just a
friendly dig <g>)))
<<...and more 3DOs were sold in the last 90 days than CD players were in
their first 90 days on the market>>
Yea, but did he sell more units than See 'n' Says did the first year?
<<He scoffed at the idea that no hot titles are available, noting that...
Sonic the Hedgehog came three years after Sega's Genesis hit the
market.>>
Wait a minute, didn't he already establish that Sega and Nintendo were
only "toys" and there is no comparison? I hope his technology is more
consistent than his speeches are.
<<Hawkins, of course, claimed he has one, based on the motion picture
system. A green circle with an E will denote titles for anyone...>>
Sounds like innovative stuff to me! (Hey where's my See 'n' Say anyway?
I thought "A" was for Anyone!)
<<It's easy for competitors to spread misinformation about us.>>
What is he talking about? He just spent a lot of time calling everyone
else "toys" with no substance to reinforce such a claim, then he says
it's easy for competitors to spread misinformation. What misinformation?
What are the competitors saying? Did they call the 3DO a "toy" too? Is
that the misinformation he's talking about?
<<"We captured the beach," Hawkins concluded, "but it's going to be a
long war.">>
Of course it's going to be a long war... you're on the wrong beach!
(Geeze... What a Trip!)
<<Press Contact: Cindy McCaffrey, The 3DO Company, 415-261-3236>>
Keep this number, there may be an opening there soon! <g>
IMPORTANT: These are personal comments and in no way represent the
comments of any other person or entity.
--Don Thomas
Representing me on this one.
-----------------------------------------
Return to message index
