Buying Stock in 3DO
22-Apr-93 20:29:46
Sb: #46664-Buying Stock in 3DO
Fm: Rich Bowers/OPA 71333,1114
To: graham hawkins 100117,2525
Graham:
Thanks for your points. Here's some response:
1) We have seen perhaps three models for generating software. First, the
typical Apple/IBM model, where the hardware vendor encourages independent
software developers. Second, the Philips/CD-I model where the hardware vendor
tries to own virtually all strategic software development. Third, the
Nintendo/Sega model where software develoers remain independent, but are
totally dependent on the hardwae vendor for access to the market. 3DO seems to
be working on an amalgam of these models.
2) CD-I will survive as long as Jan Timmer (chairman of Philips) feels
comfortable throwing money at it. Once it is dependent solely on consumer
support, it is gone.
3) CDTV seems to have suffered because it was subject to control by Commodore's
unique (ahem!) management style. That which survives of the concept appears to
be the result of a few dedicated evangelists in Europe who have peeled off its
best ideas in a new configuration.
4) A real test of 3DO's viability might be a peek at projects/products (not the
dollars) its heavyweight partners are putting behind the system. If AT&T,
Matsushita, Time/Warner and Electronic Arts are developing products that
support, or are supported by, 3DO, thenthey have a real commitment to it. The
fact they may throw a few million $$ into it is insignificant – they blow their
nose on that kind of money. The crucial measure is the role 3DO plays in their
business plans.
Offered for your consideration,
Rich Bowers