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From: neil@atari.UUCP (Neil Harris)
Newsgroups: comp.sys.atari.8bit
Subject: Re: Is Atari killing the 8 bit?
Message-ID: <730@atari.UUCP>
Date: Tue, 12-May-87 13:57:38 EDT
Article-I.D.: atari.730
Posted: Tue May 12 13:57:38 1987
Date-Received: Fri, 15-May-87 02:49:01 EDT
References: <8704241712.AA00959@mitre-bedford.ARPA> <1404@msudoc.UUCP>
Organization: Atari Corp/Mktg
Lines: 65
Keywords: What if? What next? What now?

We come again to that perpetual question: is Atari intent on killing the
8-bits?

One way to answer that would be to give you a tour of our warehouse.  If you
could see the number of 8-bit computers and software in inventory, you'd
know we are highly motivated to keep the line going.

Regarding the new XE Game System, which on the first glance is a slap in
the face to those who know how powerful the 8-bitters are -- this system is
purely a strategic move on our part.  In order to keep the 8-bit line going,
we must do two things:

1. Get the computers available in more stores, and
2. Get new software developed for them.

Software is not being developed by and large because of problem #1.  So
which stores do we go to?  The mass merchants, who sold the bulk of the
hundreds of thousands (not, unfortunately, millions) of Atari 8-bit
computers out there, are currently retreating from the computer business.
K-Mart carries NO computers.  Ditto for Montgomery Wards.  And for J.C.
Penney's.

On the other hand, these same stores are doing a fabulous business in game
systems like Nintendo, Sega, and, of course, Atari.

The solution, from a business point of view, was to develop a product that
would be appealing to the mass merchants (and also to the public which buys
there), one that also accomplishes the corporate objective of revitalizing
the 8-bit line.

So what we have with the XE Game System is essentially a 65XE in disguise.
Internally it contains 64K of RAM, the standard OS and BASIC in ROM, two
joystick ports, SIO port, etc.  It is completely compatible with the current
8-bit line, including software.

Physically it is more appealing to those who don't want a computer but who
do want to play games.  The main console simply has the 4 console keys from
the XE (Start, Select, Option, and Reset), plus the cartridge port and
connectors.  The keyboard is a separate unit which plugs into the console.

When someone buys the XE Game System, they get the complete package --
console, keyboard, light gun, and 3 programs (including a new version of
Sublogic's Flight Simulator including scenery, all on a single cartridge).

We expect stores to do a great business in these.  We'll make available the
current library of cartridge software, plus we're converting some disk
programs into cartridge format for this system.  As time goes by, we expect
to see dramatic increases in sales for 8-bit software -- hopefully, this
will also include practical applications as well as games.  This should in
turn encourage developers to create new titles for the 8-bits.

Once things get moving again in the mass merchants, the current supply of
8-bit computers should also get moving through the dealers -- after all,
they make a better value than the game systems, and take up less space.

So, those few of you out there who are looking at Atari management as the
evil group who are plotting to quash the 8-bit line, you have it all wrong.
We're trying hard to keep things moving forward.  Without the distribution
and the software, no amount of advertising and new hardware development
could work.  The XE Game System is our best hope to keep things moving.
-- 
--->Neil Harris, Director of Marketing Communications, Atari Corporation
UUCP: ...{hoptoad, lll-lcc, pyramid, imagen, sun}!atari!neil
GEnie: NHARRIS/ WELL: neil / BIX: neilharris / Delphi: NEILHARRIS
CIS: 70007,1135 / Atari BBS 408-745-5308 / Usually the OFFICIAL Atari opinion