CompuServe Thread

#Atari woes continue

17 messages in this thread
#94649From: Charles HillMar 19, 1990 8:27 AM
According to some posted (uploaded in the libs section of AtariArts) news items, Atari laid off 15% of all U.S. employees effective 5:00 pm on the 17th. The cuts were in low-lever service personnel but there are no predictions on rehiring them. Executives and name personnel (?) were not affected. -Chs
#94650From: John BonoMar 19, 1990 10:26 AM
I read those articles. Supposedly the layoffs point to restructuring in the company for the short-term, since the Portfolio and Lynx are supposedly doing very well, and Atari posted profits of $5million last quarter, up from a 92 million loss for the same quarter last year. John
#94664From: Charles HillMar 19, 1990 1:22 PM
Yes, the Portfolio is doing well, but it is a PC clone machine and not supposed to be their mainstay. The ST isn't doing so hot here in the U.S. and they are rumored to be releasinga 16 MHz '030 machine soon, but I've seen noting tangable. The STacey (is that their lap top?) seems to be a hit since it is a decent Mac laptop with the Spectre thingy and much cheaper than the Mac Portable. Ah well, luck to them. CBM needs some form of competition and unless they can gear up to play ball with Apple and IBM, Atari looks like it. -Chas
#94789From: John BonoMar 20, 1990 10:15 AM
That's the funny thing about the ST. Though it has been a bomb in the U.S., it is one of the most popular systems in Europe(they outsell Apple). That's why I don't think the layoffs are the specter of any impending doom, but just some internal restructuring in Atari. John
#94790From: Charles HillMar 20, 1990 10:53 AM
True, and most U.S. Atari people can't stand the fact that Atari considers Europe its home market. However the U.S. market is larger than Europe and nowhere near as diverse (half a dozen major languages, two different video standards, etc.) and with eastern Europe opening up for conglomorate exploitation & expansion, the market will get that much more complex. It was speculated that the layoffs were due to the fact that Atari had nothing new to ship and their business volume had fallen drastically in the U.S., so they had oodles of people with job descriptions but no work. They were "pruned" to promote new growth. The accounting branch of Atari lost 50% of the people (less money to count). -Chas
#94861From: Don Curtis/SYSOPMar 21, 1990 12:36 AM
Chas, One other item to consider…even if the Portfolio is a run-away success (BTW…it's NOT MS-DOS compatible)…it's essentially a throw-away computer. More than likely…it'd cost Atari more money to fix one than to simply replace it. At it's selling price of $400, it's real cost is probably somewhere near $40 (or less). Considering overhead, shipping, labor, parts inventory, etc….that' $40 would probably be eaten up in about 15 minutes worth of bench time. Don
#94880From: Charles HillMar 21, 1990 8:19 AM
I thought the Portfolio was a DOX 2.11 machine? If not, what is it? As for throw away, that may be true. Still, with the release of the Sony Palmtop, the Poquet PC, etc. I think the Atari will have a fight on its hands. Atari doesn't have the best name in the MS-DOS world. -Chas
#94884From: Robert RosenbachMar 21, 1990 8:33 AM
Charles, I *think* than the Portfolio is compatible with 2.11 at the INT 21 level, but not at the BIOS level. Since most PC programs call a BIOS routine at one point or another, this means that the Portfolio isn't as compatible as your average PClone. Note: I could be wrong on all this. If I am wrong, I'm sure that someone on this forum will graciously point it out to me <g>. Robert
#95121From: David M. DowdleMar 23, 1990 1:12 AM
Evan worse than you state it. Last I heard (from a Portfolio owner/distributor_ it WON'T LOAD OTHER PROGRAMS, just serial port text files! Atari techs are trying to figure a bypass to this David
#95140From: Robert RosenbachMar 23, 1990 7:43 AM
David, There's probably not that much Portfolio stuff out there to download anyway. My guess is all the Portfolio software is on cards anyway. Robert
#94885From: John BonoMar 21, 1990 10:22 AM
Well, the Poquet PC isn't really competition for the Port, when you consider the fact that it cost 5 times that of a Portfolio, and that the Atari is meant to be something like a Casio BOSS, but *much* more powerful for about the same price. The portfolio isn't fully MS-DOS compatible in that direct writes to the video will cause it to bomb. However, Atari is being very liberal with licensing developers to make applications for it, and there have been a bunch already made supposedly. John
#95276From: Trevor LaibMar 24, 1990 5:07 AM
Chas: The Atari Portfolio IS ms-dos compatible, but not IBM-PC-compatible. It also has a really nasty LCD screen that looks quite cheap. In a review of 'palmtop' PC's I read recently, the price was applauded but the rest of the machine was considered junk. (I think that was in 'PC Laptop' or some such mag. One on the mags I flip though at the newstand but never buy. 🙂 BTW, I'd heard Atari posted a large LOSS last quarter. My news may be confused: does anybody have solid $ figures? -TL
#95614From: Charles HillMar 26, 1990 8:08 AM
Atari posted a $5 million profit last year as opposed to a $96 million the year before. I think 4Q might have been a loss, but am not sure. Their stock certainly isn't doing to hot (under $6 as of Friday close). -Chas
#95637From: John BonoMar 26, 1990 11:34 AM
No, it was a $96 million *loss*. John
#95725From: Charles HillMar 27, 1990 7:45 AM
Hmmm, thought that's what I said. Oh, well. Wish I could afford a $96 million loss and stay in business. -Chas
#95849From: Trevor LaibMar 28, 1990 2:58 AM
Chas: I understand, they posted a $5M profit last YEAR, not last quarter. Yow, that sure ain't much. Course, the $24M I seem to recall CBM making ain't much either, when you consider the gross sales of both companies. I 'seem to recall' CBM grossed $950M or so last year. ————————————————————TL———-
#95636From: John BonoMar 26, 1990 11:33 AM
They posted a profit of $5 million. John