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/// CPU Status Report                     Late Breaking Industry-Wide News

                   Computer Products Update - CPU Report
                   ------------------------   ----------
                  Weekly Happenings in the Computer World
                                 Issue #34
                              By John Deegan

 Corp.'s 64-bit interactive multimedia entertainment system was unveiled at
 its headquarters yesterday to rave reactions and applause from the press.
 Atari's goal is to establish the Jaguar as the industry standard for
 interactive multimedia performance, made in the United States at an
 affordable price.
    Open to targeted gaming publications, as well as national and local
 media, the news conference served to show the press actual working
 Jaguars. A prototype of the CD peripheral, to be introduced next year, was
 also shown. The press had an opportunity to view several games in
 development, which included titles such as "Trevor McFur in the Crescent
 Galaxy," a spectacular true color, three dimensional multi-faceted game,
 "Alien vs. Predator," based on the blockbuster motion pictures from 20th
 Century Fox, and "Cybermorph," showcasing the Jaguar's ability to
 manipulate 3D shapes in a 3D world in real time.
    In addition, Atari President Sam Tramiel announced plans to distribute
 50,000 Jaguars in the New York and San Francisco markets this year, with a
 national roll-out next year. "We plan an aggressive advertising and
 marketing campaign for the fall," said Tramiel. "And by next year, we plan
 to sell more than 500,000 units."
    The news conference also served to bring to light technical aspects of
 the Jaguar which had not been made public until now. Presentations were
 made giving an overview of the Jaguar's 64-bit system architecture and
 actual proprietary chips which took Atari three years to develop.
    "The system's 64-bits are true 64-bits," said Tramiel. "There is over
 100 times more power in this compact unit than both the SNES and the
 close to Microsoft Corp. are saying the software publisher is preparing to
 release a new version of its DOS 6.0 operating system.
    Reports are that the new release will be out this fall and includes
 protective measures designed to prevent problems with DoubleSpace, the new
 DOS's compression option. Microsoft has denied the alleged flaws.
    PHILIPS OFFERS VIDEO ON DEMAND DECODER - Philips Consumer Electronics
 has announced a compact digital set-top decoder for Video on Demand (VOD)
 applications over telephone wire.
    The designated Home Interactive Multimedia Terminal converts 1.5 Mbit/s
 digital TV signals into NTSC or Pal analog signals for display on standard
 television sets.
    First applications are expected to be in Video Dial Tone (VDT) where
 telephone companies are experimenting with delivering digital TV signals
 into the home via existing twisted-pair telephone lines. Typically,
 hundreds of movies will be stored on a telephone network server. The user
 at home will view an on- screen catalog of the available movies and order
    The control system receives signals from an infrared remote control and
 relays them back into the communications network. This enables interactive
 control of remote source material with VCR-like functions such as Play,
 Stop, Pause, etc. It also allows data from the video server -- such as the
 movie catalog -- to be displayed on the screen.

    The highly integrated Home Interactive Multimedia Terminal combines
 three systems in one compact unit; a standard T1 communications interface
 system, an MPEG-1 decoder and a control system.

    While viewing television, it's still possible to use the telephone line
 for regular calls. Billing for telephone can also be separated from
 billing for the TV services.
 Calif., man has been sentenced to five years and eight months in state
 prison for distributing pornographic materials through a computer bulletin
 board system.
    The man, William David Steen, also has been ordered to pay a $1,200
 fine. Steen pleaded no contest in March to charges he distributed
 pornography through the BBS to two Sacramento teenagers.
    Authorities say Steen used the BBS to make contact with the teens in
 1991 and later provided them with computer equipment and pornographic
    L.A. NAMED TOP PIRACY CITY - Los Angeles now is the nation's top city
 for software piracy, according to research by the Software Publishers
    In a statement from Washington, the SPA says that during the year
 ending June 30 it brought 34 piracy cases -- including suits and audits of
 businesses and other organizations for compliance with federal copyright
 laws -- to a close in L.A.
    The SPA says New York and San Francisco rank second and third as
 America's most notorious cities for software pirates. The SPA concluded 28
 actions against pirates in New York and 18 in San Francisco.
    Fourth and fifth-ranked cities in the SPA study are Houston and Dallas,
 with 14 and 10 cases respectively.
    Meanwhile, the SPA says its work also:
    -:- Ranks California, Texas, Florida, New York and Illinois, 
    respectively, as the top five states for anti-piracy actions over the 
    past three years. Together, they account for nearly two-thirds (62%) 
    of the SPA's actions.
    -:- Shows that since 1990, five types of organizations were most 
    likely to be involved in anti-piracy actions: manufacturers, consul-
    tants, retailers, financial service providers and engineering firms. 
    Manufacturers were involved in 24% of the actions, while consulting 
    firms were implicated in 22%, retail businesses in 15%, financial 
    service providers in 9% and engineering firms in 7%.
    FEDS TO FUND CHIP RESEARCH - The U.S. Commerce Department has drafted a
 plan to subsidize research on certain types of computer chips.
    Sources say the plan is the clearest sign yet of the administration's
 desire to help high-technology industries in the international marketplace
 rather than through protectionist tariffs on imports.
    An unnamed administration official said that while the U.S. reliance on
 imports of the devices "doesn't present an immediate threat to national
 security, improving the capabilies of the domestic industry is desirable
 for both economic and national security."
    The plan calls for the creation of a federally financed research center
 for chip packages and more research spending on chip packaging materials.
 It also calls for Defence Department advice to the domestic industry on
 how to win more military contracts, and a working group of federal and
 industry officials to review ways to increase efficiency.
    The total cost of the effort has not been worked out.