CompuServe Thread

#The real question is

24 messages in this thread
#179090From: J Saperstein/FontBankDec 19, 1994 11:48 PM
"The OS is now in revision 3.1, there is over 10,000 applications available, there is 5,000,000 machines out there. How much bigger does it need to get before the market is established. There usually is less than that before competition starts." Your logic doesn't hang together too well. Very few of those 10,000 alleged applications are actively marketed – and very few are big sellers. 5,000,000 machines – mostly older, slower and used for games – doesn't make a market. It's people buying new software, new machines and new peripherals that make a market. You can judge the extent of the Amiga market just by trying to find a dealer near you – at least in the US. Finally, the specific kind of competition being spoken of here is between the genuine AmigaOS running on an actual Amiga and a maybe-it-be-developed clone. That's a big difference – and the number of existing machines doesn't have much relevance. The real question is where will both the dealers and the customers for an Amiga clone come from? Who's got the money to develop and support that market? What advantages would potential buyers perceive? If you look at the history of the Amiga marketplace, I think you'd have to ask how a clone could expect to succeed where the original failed. Jerry
#179134From: MARTIN SKOWRONSKIDec 20, 1994 9:23 AM
Jerry, << If you look at the history of the Amiga marketplace, I think you'd have to ask how a clone could expect to succeed where the original failed.>> Better marketing, better developer support, backward systems compatibility, competitive pricing, continuued innovative design, quality oriented production, emphasis on on customer service and dealer support……….. -mls ProActive Images Inc. "WE BECOME WHAT WE THINK ABOUT ALL DAY LONG" – RW EMERSON
#179162From: J Saperstein/FontBankDec 20, 1994 2:30 PM
"Better marketing, better developer support, backward systems compatibility, competitive pricing, continuued innovative design, quality oriented production, emphasis on on customer service and dealer support……….." And a decade old design that has a ton of obscurity or worse to overcome? Sounds like a pretty expensive job to me – and I don't see any indication that either CEI or the UK group has the financial resources to do this.
#179167From: Dale LarsonDec 20, 1994 3:09 PM
I agree. Six months ago things looked like they (both CEI and UK) had a lot more potential. The fact that no one could come up with enough bucks to just make the purchase happen makes me think that they don't have enough to do what it takes if the purchase ever does happen.
#179210From: J Saperstein/FontBankDec 20, 1994 11:08 PM
"The fact that no one could come up with enough bucks to just make the purchase happen makes me think that they don't have enough to do what it takes if the purchase ever does happen." Is that actually what happened, Dale? I thought the delays were occasioned by creditor's turf battles, missing or unaccounted inventory and the general complexity of Commodore's global structure. I didn't realize that the two primary bidders were facing money problems, save the problems occasioned by backers losing interest over the repeated delays. In regard to marketing a revitalized Amiga brand, I think there's general consensus that neither of these entities could really afford to do that on the large scale required by todays industry.
#179268From: Dale LarsonDec 21, 1994 3:24 AM
As far as I can tell, every time the situation changed, everyone withdrew any tentative offers or bids and talked to their lawyers for two weeks. I'm sure that if someone had made a formal offer, it would have been considered. The difference between how much the value went down in the last six months and the amount you might have been overpaying because you guessed wrong on the available assets would probably have been in the bidders favor. The problem was most likely that the finance people didn't put up carte blanche money. Given that, I doubt they are willing to put up much more. Pulling numbers out of the air, if I have a business plan that says: $50 million – buy C= $500 million – start new production line and build less than a million machines $250 million – aggresive marketing plan $100 million – moderate R&D If I have this, I'm not going to worry all that much about what is included for the $50 million. A pile of a few thousand machines one way or the other wouldn't matter. A few piles of inexpensive parts one way or the other wouldn't matter. I'd just pay the $50 million so that I could get on with the rest of my plans. If it had to go to $75 or $100, I probably wouldn't hesitate, as long as it meant I could start now. On the other hand, if my plan called for $50 million – buy Commodore $1 million – assemble every machine possible with the supply of parts available, making a good profit off those, then sell off patents, etc. Then I guess I'd worry about every nickle and dime and EXACTLY what physical inventory was available.
#179312From: J Saperstein/FontBankDec 21, 1994 12:21 PM
Great illustration, Dale! <G> Jerry
#179328From: Dale LarsonDec 21, 1994 2:50 PM
Thanks for the compliment? I can't for the life of me figure out what your message is in reply to (I just searched my 6 week history file and could only find messages from you with this exact subject).
#179331From: J Saperstein/FontBankDec 21, 1994 3:05 PM
" I can't for the life of me figure out what your message is in reply to" Your financial illustration/example re a resurrected Amiga. Jerry
#179338From: Dale LarsonDec 21, 1994 4:47 PM
Where I said "$50 million to buy C=, $500 million to manufacture?" Who changed the topic name?
#179364From: J Saperstein/FontBankDec 21, 1994 8:07 PM
"Who changed the topic name?" Beats me. Happens a lot around here. Jerry
#180044From: Black Belt SystemsDec 29, 1994 1:16 AM
Dale, I've got a final, or near-final copy of ApAssist that _should_, hopefully, run on your setup. Will you try it for me? Should pay attention to your screen modes, etc, once you tell it what you want to configure it. Including running in your 4-color mode. –Ben …via AutoPilot
#179298From: John ChangDec 21, 1994 10:34 AM
Jerry, Indeed, strategic alliances are going to be very important to either company to continue the Amiga technology. Regards, John Chang
#179313From: J Saperstein/FontBankDec 21, 1994 12:22 PM
"Indeed, strategic alliances are going to be very important to either company to continue the Amiga technology." I would imagine so – and don't doubt for a moment that both of the primary contenders have been trying to strike those deals for the past several months. If they haven't . . . well . . . that kind of says it all, doesn't it? Jerry
#179820From: John ChangDec 27, 1994 11:11 AM
Sigh, I should think so. I really have to get some specifications on the Sony PlayStation. I have a contact in Japan. I'll ask him to see if he can send me anything on the PlayStation. In English I hope.
#179834From: Dale LarsonDec 27, 1994 2:14 PM
I'd think Nancy could fax you something from Porter's files…
#180089From: John ChangDec 29, 1994 11:17 AM
Dale, Hey, good idea! Should have thought about that myself, but then that's why I have you around! ;-} Regards, John Chang
#180112From: Dale LarsonDec 29, 1994 12:35 PM
Have me around hell. You never call when you are up visiting your snuggle-b nny. You love her but not me.
#179213From: Alex BakerDec 20, 1994 11:26 PM
Seems to me that "where will both the dealers and the customers for an Amiga clone come from?", is the problem for the clone developer to answer. Apple (II series), and the IBM both had their clones. The better ones survived, and the inferior ones didn't. In the case of Compaq, they were noted for building a clone that was an improvement upon the original. If a clone outift can build a better Amiga, than the orignal, I'm open to it. As it stands, nobody is building anything, and the market for the Amiga is evaporating. This is somehow better than having a clone vendor with boxes on the shelves? So how would a clone builder expect to succeed where the Amiga has failed? Well, they might just offer more bang for the buck, provide some sort of rational marketing plan, and then even implement it. To send the reverse of the question back your way…. How can the buyer of the Amiga expect to succeed, where the original failed? IMHO it's becoming pretty plain to see that neither group is overly endowed with monitary backing. If either were, they could offer a sum that would make the liquidators snap to attention, and put the bid beyond the grasp of the opposition. As more details surface, it looks more and more like the dollar figures are pretty low. While one always wants to get the best price, there is a steady errosion of the value of the porperty. While the bidders are moaning about the liquidators not understanding this, they also don't seem well heeled enough to put a bid on the table so that they can get the rights and be on their way to the financial riches they supposed to be at the end of a resurrected Amiga Rainbow. – Alex… Celebrating 10 years on Compuserve
#179263From: J Saperstein/FontBankDec 21, 1994 2:42 AM
"How can the buyer of the Amiga expect to succeed, where the original failed?" You put your finger on it, Alex, and the answer is that none of us know. As a matter of purely personal opinion, I think the two groups have totally different objectives in mind. The UK group, from what I've seen, hopes to re-establish the Amiga in the European market which was the core to begin with. I don't know enough about that market to offer an opinion as to the viability of doing that. CEI's plan seems to concentrate more on the higher-end and the US market. My personal feeling – and taking into account my absolute ignorance of the European market – is that the Amiga has excellent potential as a niche machine in the US, generating perhaps between $20 and $50-Million in annual revenues for the near-term. I don't personally think that there's any hope of re-establishing the brand as a mass market machine. "Apple (II series), and the IBM both had their clones." Bear in mind if you will that the Apple and IBM situations were entirely different. Apple moved aggressively against the one clone manufacturer I remember (Franklin) and essentially pushed them out of the business. Since that time, to the best of my recollection, there have been only two Apple clones, both using the Mac ROM's. Apple invested in one (Outbound). Both have long since gone out of business, Outbound being slaughtered by Apple's introduction of the PowerBook. IBM produced an open architecture to begin with allowing anyone to produce the machine without legal restraint. IBM promptly shot itself in the foot with the PCjr and allowing itself to become mired in internal turf wars that literally distracted its attention from the market. I forget the exact name of the book ("Big Blues" maybe), but Compaq would never have made it to first base if IBM had not cancelled several machines because of internal squabbles. In both these cases, though, Apple and IBM had established markets and huge brand recognition. People could be convinced that purchasing a lower cost 100% clone might be worth the risk. As often lamented here, most people have never heard of the "Omega". Thus the only people who might be induced to buy a clone are those who already own an Amiga – and they have shown little inclination in the past to upgrade their equipment with the real thing, so why should they be expected to purchase a clone? Personally I think the entity that acquires the Amiga technology and aggressively markets it as a niche machine is going to make a lot of money. Not as much as Bill Gates, perhaps, but definitely enough to buy a yacht or something like that. But I have serious reservations about a re-established Amiga product making it in the mass market – and even less belief that a clone could do it. Jerry
#179475From: Alex BakerDec 22, 1994 8:07 PM
I don't know that there is no hope of re-establishing the Amiga as a mass market machine…. However, to have any hope of doing so, you'd first have to go where the money is. ie. niche markets Once you are turning a profit, you could trickle down some lower cost machines into a larger market. Any resurgence would have to be inch by inch, if even that is possible. I can't picture any senerio that would have the Amiga suddenly grandly plopped back in the middle of the battle. Apple for all the shortcomings that I feel the Mac has, has been an excellent marketer, and even they find it hard to hang in there. Many of the once specific Mac titles, and often they are developed for MS Dos, and then ported to the Mac. It would be even harder for the new owners to roll out the Amiga as a do it all machine, especially with the relatively few remaining active developers. Without the bucks to go RISC, I don't see a future at all for the machine. (True the 68060 may be a really great processor, but the world wants RISC. Just as they want it to run 123, Windows, or whatever the fad of the moment was.) Franklin was one of the first cloners, but there were others. Laser Technology comes to mind. They also produced PC clones. Not sure if they are still in business. Supposedly there is a Mac clone ready to go out of Taiwan. However I'm not sure that it is 100% compatible. As for an Amiga clone…. If it were to the Amiga, as the Comnpaq was to IBM, faster and better, then I'd be interested. However, the decision to market or not, would be with the potential makers of the clone. In a free marketplace, we are all able to give it a shot. (Within the bounds of copyright and patent laws.) I don't give either one a very big chance, but at the present time we have zilch, so anything would be an improvement. – Alex… Celebrating 10 years on Compuserve
#179483From: J Saperstein/FontBankDec 22, 1994 10:57 PM
We seem to be in agreement, Alex. Jerry
#179628From: Mr. ChalleronDec 24, 1994 3:12 AM
PMFJI here, but: > the 68060 may be a really great processor, but the world wants RISC. I'd hedge that idea: What "the world" wants is a specific level of performance, and they aren't too concerned with the mechanics; after all, it was always the Amiga's custom ASICs, rather than its CPU, that made it "do its thing" better than any other desktop system. And it's also interesting to note that, in "the world" of Interactive TV, the industry leaders have been saying that "The PC world is missing the point; we have to keep costs down, so we'll be concentrating on 68000- level processors with minimal memory." (Ask John Chang if this isn't true.) I've been thinking for some time now that the ideal CPU to "restart" the Amiga line with would be the 68060 (which by the way _is_ a RISC-chip with an internal 68K command-translator); and then Amiga Inc. ought to work with Motorola and their Flex-something-or-other libraries to develop an Amiga-specific CPU (Motorola is working very hard to make it affordable for small companies to "roll their own" processors): What about a variation on the Motorola ColdFire concept — a custom CPU that could read and process four 16-bit (68K) or two 32-bit (68040) instructions at the same time? How about two floating-point processors in the same chip? What if the CPU itself was smart enough to route Amiga-chipset calls down different busses according to how ChipRam had been allocated? If you could access the ChipRam as fast as you could access the CPU caches, there wouldn't be ANYTHING on the market that could touch it. — And let's forget all this "Windoze-compatible" nonsense: You don't see Silicon Graphics worrying about running Lotus 123; they're neither "mainstream" nor "high-percentage", but they sure as hell seem to be making a profit…. "A 'Creative Amiga'? Hell, we ALL knew that…." Mr. C
#179821From: John ChangDec 27, 1994 11:11 AM
Mr. C., I agree with much of what you have written. Indeed, most of the companies that are interested in Interactive Television (ITV) want an inexpensive set-top box ($300 or less). At least initially. There have been some studies in which some claim that interactive television will have a slow growth, only exist in large metropolitan markets and may be unprofitable for the first five years. Thereafter, the market will boom as consumers accept it in the mainsteam and will be bigger than the current Radio/TV/Cable market combined. The AA chipset, if it can be cost reduced further, may have great potential in the ITV market. In addition, the desktop video market will probably grow immensely as content providers try to fill in the bandwidth with low-cost programming. Yes, the Amiga may find itself in this niche market and WHAT A MARKET IT WILL BE! Regards, John Chang