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From: cmm1@cunixa.cc.columbia.edu (Christopher M Mauritz)
Newsgroups: comp.sys.atari.st
Subject: Re: Predictions
Message-ID: <1991Jan3.193623.10020@cunixf.cc.columbia.edu>
Date: 3 Jan 91 19:36:23 GMT
References: <1990Dec30.173545.7384@lsuc.on.ca> <7676@castle.ed.ac.uk>
Sender: news@cunixf.cc.columbia.edu (The Daily News)
Organization: Columbia University
Lines: 61

In article <7676@castle.ed.ac.uk> aiajms@castle.ed.ac.uk (-=Andy=-) writes:
>Dear Jim et all
>
>Before I start my own modest offering of predictions, I would like to
>congratulate Jim on his "Nostra Damus" like predictions he has made on
>the globe and Atari, very interesting and a trifle amusing. (I would have
>prefered his comments on the Persian gulf than that of Atari to be honest!)

Certainly, the Gulf would be more interesting to talk about, but...

>
>I am of the opinion that with the current state of the global economy,
>certainly in the US and in the UK, and nervousness over the Gulf war,
>that companies of whatever stature are going to find life difficult to
>survive. As a result, most companies will either have to push up prices
>(which is inflationary == bad) or cut production costs. Cutting
>production costs will be for most manufactures the first choice.

Well, companies will try to cut costs, but as for the rest of your
analysis....I don't think so.

>Now lets look at Atari. They have already cut costs in many areas in the
>new machines. The plastic casing on the ST is nothing short of "tacky",
>the keyboard feels like a spring mattress on a bed, plus the array of
>"99%" functionality of I/O ports. Plus the darn things are made in
>Taiwan.

This is all true.  ST's are certainly not built to last, but what
can you expect at that price?  When you buy a Hyundai, you can't expect it
to last as long as a BMW.


>I cannot see Atari being able to make enough savings in cost of
>production to keep prices as they are at the moment. They will either
>have to increase prices, thus placing them in the realms of PC-land
>which would be a difficult market for them to compete or further reduce
>production costs. I believe the ST is already "mutton dressed as lamb",
>and I cannot see them doing much more with it.

Well, if Atari raised prices, they would effectively cut their own
throat.  I suspect, if sales really start to slump, they will just 
slow down or stop production until such time as demand picks up.  They
don't have the cash to inventory all this stuff if nobody is buying so
I think the layoff option will be the most attractive.  The majority of
Atari's employees are located in Taiwan and Japan so I would expect
the ax to fall heaviest there (Besides, Atari already cut back in the
USA last year).

>Cheers.

Hey, that's my line! :-)

Cheers,

Chris
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Chris Mauritz                 |D{r det finns en |l, finns
cmm1@cunixa.cc.columbia.edu   |det en plan!
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