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

            » Hitachi to Market Re-Writable Optical Drives «

According to Hitachi Ltd., the company later this year will  begin selling
2-gig re-writable 5.25-inch optical disk drives.  Hitachi said the re-writable
optical disk can store 50% more data than  products of other makers available 
on the same size of disk.

           » Multimedia Expo - Analyzing The Games Industry «

At the "Analyzing the Games Industry - Investment and Return" session at the 
Multimedia Expo in San Jose, one of the featured speakers was Volpe Welty's 
Lee Isgur.

Isgur  identified Nintendo as the dominant player in the video game industry 
in terms of installed base and hardware.  However, he said that in terms of 
sales, the "8-bit machine is faltering very badly," but the "16-bit will do 
better in sales than last year."  He also said that, "Game-Boy is, at the 
moment, the leading portable platform."

He predicated that there would be 83 million units of software sales 
domestically this year.

He noted that Sega has been outselling Nintendo in the last few weeks in the 
US, in terms of new hardware and software sales.  However, he said he did not 
know if that would continue into the Christmas season.

He identified CD's as becoming the dominant factor in the industry in 
terms of software during the 1995-1997 period.

Interestingly, he said that which media the game industry uses will dictate 
where it goes. He maintained that the current cartridge industry is fairly 
expensive, and expects a shift to something else - such as flash cards or 
CD-ROMs.  He also said that the current hardware "is lousy," with no flat 
screens, no great colors.

            » IBM Microelectronics Has Faster PowerPC Chip «

IBM Microelectronics has announced a new version of the PowerPC 601 micro-
processor that runs at 80 MHz. Previous versions operated at 50 and 66 MHz.  
Company officials said the new chip would make possible desktop computers 
faster than any based on existing processors.
The PowerPC line of chips resulted from an alliance of IBM, Apple Computer 
Inc., and Motorola. The 601 is the first of four planned Power-PC parts.  
The PowerPC 603 is a power-saving version aimed  at  laptop, portable, and 
low-end desktop computers.  The PowerPC 604 is meant  for higher-performance 
desktop PCs and workstations. The PowerPC 620 will be the top of the line,  
meant for high-performance workstations and servers.  IBM plans to begin 
making these chips in 1994 and 1995,  Smith said.
The 601 chip has 2.8 million transistors, in a package about four tenths of 
an inch per side.  It includes the Motorola 88110 bus, which provides an 
advanced interface that supports a range of computer systems, including 
personal computers, workstations, and multiprocessing systems, the companies 
          » Hewlett-Packard Announces Video Printing System «
Hewlett-Packard Co. this week announced the HP VidJet Pro, a product that  
allows video images from a wide range of sources to be printed on plain 
paper using most HP printers.
Designed for professional video production, the HP VidJet Pro has an 
easy-to-use interface that is also expected to attract advanced home 
hobbyists.  Users connect the HP VidJet Pro to any video source, such as 
a videotape player, television, camcorder, photo CD or laser-disc 
player.  They also connect the system to an HP DeskJet or LaserJet 
printer or HP DesignJet plotter. Images are stored as individual frames, 
sequences of frames or in pre-designated special formats, such as the 
first frame of every scene change.
HP-authorized video dealers are scheduled to begin taking orders  for 
the VidJet Pro in December.  Prices will vary depending upon options, 
starting at about $3,500.
                  » QMS Unveils Color Laser Printer «
QMS  Inc this week announced that it has begun quantity shipments  of 
its  ColorScript Laser 1000 Print System,  it first desktop color  laser 
printer.   The QMS ColorScript Laser 1000 produces color and  monochrome 
documents on a variety of paper stocks, including plain office paper.

The unit offers an output resolution of 300 dots per inch. Four self-
contained toner cartridges containing cyan (blue), magenta (red), yellow 
and black toner, supply the basic colors used to create a palette of 
millions of colors.

The QMS ColorScript Laser 1000 is compatible with most computer systems, 
networks and mixed computing environments. Its resident emulations 
include PostScript Level 2 and Level 1, HP PCL 5C with GL/2 (which 
supports color) and an optional DEC LN03 Plus emulation. Standard 
interfaces include parallel, serial and LocalTalk ports.

The QMS ColorScript Laser 1000 is available now and is priced at $12,499.
              » Seagate Intros New High-Capacity Drives «
Seagate  Technology  has announced 13 new  hard  disk  systems,  with 
storage capacity ranging from 214 megabytes (MB) to 9.1 gigabytes (GB).
Included  in the new lines is the ST410800 Elite 9,  a  9.1  gigabyte 
unit in a 5.25 inch full-height form factor.  Seagate says that the unit 
is designed for hierarchical storage and large file plus database appli-

The  ST15150 Barracuda 4 is a 4.1 GB 3.5 inch half-height  drive  for 
super servers, super computers, and high performance storage systems.
The  ST12450  Barracuda 2 is a 3.5 inch half-height  drive  that  can 
store up to 1.78 GB of data.
The Hawk family comes in 2.14 GB, 1.7 GB and 1.05  GB  versions, designed
for advanced workstations and super servers. Hawk comes in Fast SCSI-2 and 
Fast//Wide SCSI-2 versions in either single-ended or differential 
In  the  under one GB category,  Seagate is introducing  the  ST5660, 
ST3491 and ST9550 families. The 5660 is available with AT or Fast SCSI-2 
interfaces,  has a 12 millisecond seek time. OEM pricing is $495 for the 
AT/IDE model and $545 for the Fast SCSI-2 version. The 9550 was designed 
for  use in portable computing units and can withstand shocks up to  100 
Gs and uses a disc substrate material called MemCor.  The  glass-ceramic 
canasite-based  media was developed jointly by Corning Glass  Works  and 
Seagate.  MemCor substrates can be manufactured much thinner than  other 
media and still retain rigidity. The ST9559 has a 16 millisecond average 
seek time.
             » Hayes Launches New Fax-Modem, Cuts Prices «
Hayes Microcomputer Products Inc. announced a new fax board which can 
work on two separate phone lines,  the JT Fax 144B Dual,  and cut prices 
on its older 9600 bits per second (bps) product by over 35%, to $369.
The new fax-modem is more than just a fax answering machine.  It eli-
minates  the  need  for  an additional voice  card  and  provides  voice 
announcement and prompting,  voice record and playback,  and the ability 
to enter commands through a touch-tone phone. It also off-loads the con-
version of files to the fax format from the main computer,  and  enables 
routine multi-board installations in a single computer,  limited only by 
the number of available slots.
The  modem  will  be available November 1  in  North  America,  Latin 
America,  and  Hong Kong,  with a further world-wide  rollout  following 
shortly thereafter.
                   » U.S. Robotics Sells Subsidiary «
Modem  maker  U.S.  Robotics Inc.  has sold  Communications  Research 
Group,  the subsidiary responsible for making and selling the BLAST com-
munications software product line,  to Blast Inc., a North Carolina cor-
poration.  U.S. Robotics said that it retained an equity interest in the 
new entity and "will work closely with Blast Inc. to ensure the needs of 
new and existing BLAST customers are met."
Robotics Vice President Ross Manire said,  "As we evaluated our  core 
business,  we recognized that CRG was not a strategic fit going forward. 
(This  sale) allows for more focus on what is a  very  support-intensive 
communications software line."

           » Motorola Announces a New Integrated Processor «

Motorola's  High  Performance Microprocessor Division this  week  an-
nounced the 68307,  a highly integrated processor ideal for a variety of 
portable,  low-power  applications such as digital cordless  telephones, 
portable measuring equipment and point-of-sale terminals.  The 63807 was 
originally  designed for the digital cordless phone products of a  major 
European  telecommunications  company.  The newest member of  the  68300 
Family  of Integrated Processors,  the 68307 features a  static  68EC000 
core processor with multiple bus interfaces.  It is the second processor 
designed using Motorola's standard cell design methodology.
"The  68307's high level of functional integration results in  reduc-
tions  in  power consumption,  board space and system cost  demanded  by 
today's portable devices," said Jim Reinhart, Motorola's manager, M68000 
marketing and applications.  "The 68307 is the only member of the  68300 
Family   of   Integrated  Processors  that  incorporates   several   bus 
interfaces,  providing glueless connections to a wide variety of  common 
system peripherals and memory."

                         » RAM Prices Falling «

On the July 4th weekend,  the Sumitomo Chemical plant in Japan exper-
ienced  an explosion that shut it down.  Since Sumitomo produces 60%  of 
the  world's high-quality epoxy resin,  the explosion resulted  in  sky-
rocketing RAM prices. Some suppliers reported RAM costs jumping 200-300% 
since the explosion.  Sumitomo announced this week that it will be  back 
in production in December.  This announcement has resulted in some  com-
pany's RAM prices dropping 10-20%,  with larger price reductions due  in 
December or January.
Epoxy resin may seem far removed from RAM chips, but the substance is 
critical to about 80% of the computer chips made today.  Alvin  Despain, 
Ph.D.,  an expert on computer architecture at the University of Southern 
California,  said  the  resin  protects the surface  of  the  integrated 
circuit (IC), has some thermal properties that help get heat out, and is 
the "glue" to hold down the silicon in the chips.

                    » Chip Rate Drops in September «

The chip industry's  key book to bill ratio took a dive last month to 
1.01, down from 1.08 in August, possibly indicating a much softer market 
for semiconductors than had been forecast.

The ratio means that for every $100 worth of products shipped in Sep-
tember  (billed),  manufacturers  received  $101  worth  of  new  orders 

                  » Online Service for Women Formed «

An online service devoted to women,  called WIRE (the Women's  Infor-
mation & Resource Exchange) has been created in San Francisco.
The service,  created by two computerists who are women, offers news, 
entertainment,  bulletin  board conversations and electronic  messaging. 
Subscribers pay $15 a month for two hours of use,  with additional  time 
billed at $2.50 an hour.
Sources  say  that  "in the 'virtual community'  formed  by  computer 
online services,  women represent 10% to 15% of online users. They often 
are made to feel unwelcome by men who dominate online conversations  and 
make sexually harassing comments."
WIRE  officials  said men are welcome,  but said  unruly  subscribers 
could be expelled from the system.

                 » Recall of Faulty Dell Notebook PCs «
Dell  Computer  Corporation has announced the recall  of  17,000  dis-
continued 320SLi and 325SLi notebook computers because of a faulty  part 
that, under certain circumstances, could cause a fire.
Dell said its engineers has determined that a capacitor on the mother-
board of both models might crack under physical stress. If that happens, 
the capacitor might overheat and cause a fire.
A  Dell  spokesperson said he only knows of the problem  happening  on 
three machines, and the company has been unable to replicate the problem 
in  the  lab.  However,  due to the safety aspect the  problem  Dell  is 
immediately recalling both models.  Registered owners are being notified 
by registered mail.
Owners of either model should return their machines to Dell so repairs 
can be made. Turnaround time will depend on how many owners return their 
units.   To  return one of the computers owners should contact  Dell  on 
their  toll free number between the hours of 8AM and  6PM  CDT.  Special 
customer  services representatives are available to arrange the  returns 
and answer questions.
                » Flying Toasters Arrive For DOS Users «
Berkeley  Systems has started shipping its DOS version of  After  Dark 
screen saver.
Screen savers, apart from looking good on screen, protect the computer 
monitor  from phosphor burn-in -- which is a problem when  monitors  are 
left on but inactive. The company says that After Dark can also increase 
privacy  -- to block access to a user's files,  the program  features  a 
screen-locking  security  system  that is deactivated only  by  a  user-
selected password.
After Dark for DOS also offers optional digitized sound  effects,  run 
through the internal PC speaker or through Sound Blaster or Ad Lib  com-
patible sound cards.
The package requires DOS 3.3 or higher, a VGA or SVGA display, 640k of 
RAM, and a hard drive. The product is priced at $49.95.
                    » Mastercook II For PC Debuts «
Spinnaker Software has introduced its Mastercook II,  a  Windows-based 
cookbook  software  package that contains more than  1,000  recipes  and 
allows the user to enter and store their own culinary masterpieces.
In  addition to being a collection of recipes - 100 of them  are  from 
what Arion calls "the great chefs of America" - Mastercook II can select 
recipes  that  use  on-hand  ingredients  meeting  the  user's  personal 
nutritional objectives.  It can also print shopping lists, recipe cards, 
menus, meal plans, or a complete customized cookbook.
Mastercook II requires a 286-based PC or higher running Windows 3.1 or 
higher,  2 megabytes (MB) of system memory,  and 2.5MB of free hard disk 
space. Spinnaker says it will have a street price of under $30.
             » Fujitsu Announces Latest Pen-Based System «
Fujitsu has announced the PadPlus RF,  a pen-based computer with wire-
less  communications built-in.   Fijitsu previous pen-based systems  had 
carried the Poqet name.
The  PadPlus RF incorporates the Proxim RangeLAN wireless adapter  and 
radio inside the computer,  with a retractable antenna in the upper left 
corner.  The PadPlus RF can send data up to 300 feet using what's called 
spread  spectrum technology,  which sends data over a wide  spectrum  of 
frequencies to minimize interference. The PadPlus RF has a maximum burst 
rate of 242,000 bits/second on three channels. The system includes error 
correcting  hardware  and firmware designed  to  retransmit  undelivered 
The pocket PC weighs about two pounds, and can run for between two and 
four hours on a set of rechargeable batteries. It also features a PCMCIA 
expansion slot, a serial connector, an infrared link, and a keyboard. It 
can work with Novell Netware and Netware Lite,  with preliminary pricing 
set at $2,449.
                       » Intel Earnings Up 143% «
Intel Corp.  this week reported third quarter earnings of $584 million 
(or $1.33 a share), up 143% from earnings of $241 million (or 56 cents a 
share) for the same period a year ago.
Analysts  believe  Intel will continue to dominate the  computer  chip 
industry for some time, especially with recent releases of the state-of-
the-art 486 and Pentium chips that have pushed the company ahead of  its 
rivals technologically and in terms of revenues and profits.
Sources  say that Intel is on track to ship hundreds of  thousands  of 
Pentium processors in 1993 and millions in 1994.
                        » Lotus Income Up 151% «
Lotus Development Corp.  has reported net income of $18.3 million,  or 
41 cents per share, for its third quarter ended Oct. 2.  This is up 151% 
from $7.3 million,  or 17 cents per share,  before a stock-sale gain  in 
last year's third quarter.  Lotus' third-quarter revenue was $240.1 mil-
lion, up 16% from $206.7 million in the same period last year.  
               » Ares Software Announces Font Workshop «
Ares Software Corp.  this week announced Font Workshop, a value-packed 
bundle  containing FontMonger,  FontMinder 2.0  and  FontFiddler,  three 
essential font applications for Windows-based computers.
Ares Font Workshop will ship on Oct. 15, 1993 and have a suggested re-
tail  price of $249.95.  Now Windows users will have all the tools  they 
need to convert, modify, create and manage their fonts in one economical 
FontMonge converts fonts between all major formats and enables  cross-
platform conversion of fonts between Macintosh and PC  computers.  Fonts 
can  be  modified or even created in a flash with  FontMonger's  simple, 
elegant interface. FontMonger has a suggested retail price of $149.95.
FontMinder  2.0 will manage fonts in Windows 3.1.  FontMinder  stream-
lines  the installation and de-installation of PostScript  and  TrueType 
fonts. FontMinder has a suggested retail price of $79.95.
FontFiddler  is  a kerning editor for TrueType and  PostScript  fonts. 
FontFiddler has a suggested retail price of $99.95.
            » Peachtree Accounting for Windows Release 2.0 «
Peachtree Software announces that its best-selling Windows  accounting 
package, Peachtree Accounting for Windows Release 2.0, has surpassed all 
sales  projections  and  is  outselling its  previous  version  and  the 
competition three-to-one as of September 1993.
A PC Research Survey reveals Peachtree Accounting for Windows  Release 
2.0 is outselling Microsoft Profit and MYOB by a significant margin.
In  addition  to  enhancements  like  graphical  guides  and   on-line 
tutorials,  Peachtree Accounting for Windows Release 2.0 now reads files 
created in Intuit's Quicken for DOS and Quicken for Windows.
Peachtree Accounting for Windows Release 2.0 is fully networkable  out 
of the box and sells for a suggested retail price of $169.
                           » New Ace Board «
Best Data Products Inc.  is rolling out the ACE Advanced Communication 
Enhancement system, a breakthrough internal board for IBM-compatible PCs 
that  will  change  the  way small companies  and  at-home  workers  use 
Developed  in cooperation with IBM's  Microelectronics  division,  ACE 
merges fax,  modem,  sound,  telephone answering capabilities and CD Rom 
interface  onto a single card--a first-time feat made possible by a  new 
digital  signal processing (DSP) technology from IBM called  Mwave.  One 
ACE  board can take the place of four separate  cards,  saving  valuable 
space in the motherboard for other applications.
In  addition,  ACE defies obsolescence because it is  fully  software-
upgradeable, making it easy and inexpensive to add new applications such 
as  V.FAST,  color  faxing  and video teleconferencing  as  they  become 
available.  ACE  also reduces downtime because it  permits  simultaneous 
tasking,  enabling  a  user to continue working at the  computer  screen 
while  a fax is being sent or a phone message is being  taken.  Both  of 
these important features were made possible by the Mwave technology.
The ACE system comes with a 14,400 bps modem, a 9,600 bps fax with fax 
back and fax forward features,  and a 16-bit audio board with wave table 
synthesis.  It  requires  a 386SX MHZ processor with a 4 MB RAM  and  is 
designed to operate with Windows and OS/2. Suggested list price is $259. 

             » Apple USA Head Resigns Effective Tomorrow «
According to Apple Computer,  Apple USA president and general manager, 
Robert Puette,  will be resigning effective October 15.  His replacement 
is  expected  to be his boss,  Ian Diery,  executive vice  president  of 
Apple's Personal Computer Division.
Puette  has  been at Apple since 1990.  Apple officials said  the  USA 
general manager is leaving to pursue other interests.  However there are 
speculations  that Puette's resignation could be the result  of  Apple's 
restructuring. Sources at Apple did say that the resignation has nothing 
to do with rumors that Apple USA might wholly move to Austin, Texas.

       » Apple Sets up a "Try Before You Buy" Software Division «
Joining  IBM and Gateway,  Apple Computer has announced a  new  CD-ROM 
delivery system for its software.   The initial offering will consist of 
80 software programs and will be handled by a new division called  Soft-
ware Dispatch.
Apple's  Software Dispatch division will handle 800 number calls  from 
users  who,  after providing a credit card number to purchase the  soft-
ware, can unlock applications on the Software Dispatch CD-ROM disc via a 
key given over the phone.
A  Quicktime  movie tutorial will be supplied to explain the  'Try  it 
first' purchase process.  Interactive tours, limited trial versions, and 
product   information  sheets  will  be  available  for  each   software 
application on the CD.  Customers may select the software by clicking on 
a button that adds the title to an electronic order form.
The electronic key will allow installation from the CD to a hard  disk 
of the software purchased. At the same time, the customer can also get a 
full set of product documentation that is identical to the print version 
that users would normally get in traditional packaging.  Hard copies  of 
the documentation can also be ordered.
Over 80 applications will be on the first CD,  featuring productivity, 
utilities, education, games, fonts, clip art and other applications from 
Symantec,  Claris,  Computer Associates, Intuit, Vividus, Spinnaker, and 
The CDs will be distributed free by mail beginning in November 1993 to 
Macintosh CD-ROM owners and in early 1994 to Windows CD-ROM owners.  The 
cost  of the software will be about the same as users can expect to  pay 
in software stores.
                » Pastel ships DayMaker Organizer 3.0 «
This  week  Pastel will start shipping the new version  of  its  best-
selling personal organizer for the Mac, DayMaker Organizer 3.0.  Version 
3.0  was  inspired by feedback from many of the nearly 50,000  users  of 

"The  key to DayMaker Organizer's superiority is the natural  integra-
tion  of contact and phone-call management to the most  usable  calendar 
and  to-do list program," said Hank Williams,  president of  Pastel.  He 
added  "DayMaker Organizer 3.0 offers a complete solution  for  personal 
organization by providing a tightly integrated product that gives  users 
immediate   access  to  their  important  information  and   is   easily 
Special introductory pricing of $129.95 is being offered through  Nov-
ember 30, 1993. After that DayMaker Organizer 3.0 will list for $149.95. 
A  competitive trade-up is available for $49.95 from Pastel and  leading 
catalogs.  Current DayMaker users can upgrade for $29.95 plus $5.00  for 
shipping  and handling.  After December 31,  the upgrade price  will  be 

To order an upgrade, DayMaker users should send a check plus a copy of 
their  sales receipt or the cover of their DayMaker  manual  to:  Pastel 
Development, 113 Spring Street, New York, NY, 10012, or order by calling 
Pastel's order department at: 800/249-8316. About Pastel Development



                »» Dataquest - CD-ROM Market Exaggerated ««

LOS ANGELES, CALIFORNIA, U.S.A., 1993 OCT 20 (NB) -- There is a
strong shift on the part of multimedia hardware makers towards 
software in the form of CD-ROM titles. 

Apple Computer, Media Vision, and Creative Technologies have all 
announced their intention to offer CD-ROM software titles in 
various forms. Traditional book publishers, such as Harcourt Brace, 
are getting to the act as well. However, Dataquest analysts say 
the race to CD-ROM may be premature.

Media Vision's Allen Thygensen, senior director and general
manager of multimedia publishing, told Newsbytes: "Content,
long term, is where the money is." 

Ian Diery, executive vice president of Apple Computer's 
Personal Computer Division, said the company sees such strong 
opportunity in the direction of content that it has gone as far 
as to spend $100 million to populate the market with CD-ROM 
hardware so it can sell CD-ROM titles.

Harcourt Brace and Company, a publisher in the educational
market, just recently purchased Archipelago Productions, a
California-based developer of CD-ROM and interactive computer
software and educational products, for the purpose of entering
the educational software market. Random House, another
educational publisher, recently announced a joint venture
agreement with multimedia software publisher Broderbund to
develop and distribute CD-ROM titles.

However, the market for CD-ROM drives and titles may not grow 
as fast as these companies anticipate, according to Bruce Ryon,
principle multimedia analyst with the market research firm
Dataquest. Ryon said exaggerated reports have had the CD-ROM
market as high as $3 billion, but Dataquest has been unable to
find any supporting evidence for a market larger than $600
million right now.

A recent Dataquest survey revealed only seven percent of a sample
population of 200 consumers with computers have CD-ROM drives
attached to their computers. Ryon says independent surveys he has
seen have held to the same proportions. This means the current
market for CD-ROM titles is a small subset of the PC market as
a whole.

In addition, Ryon said he found a whopping 85 percent of the CD
software titles are sold bundled with CD-ROM drives and those
surveyed said they were happy with the software that came in
the bundle. Less than fifty percent bought additional titles
after buying the CD-ROM bundle and most buyers said they did not
plan to purchase any more CD-ROM titles. As the CD-ROM drive
market becomes more competitive, manufacturers are considering
cutting their costs by eliminating the expense of the bundled
software, but Ryon says these companies are also afraid to
eliminate the bundles because they fear CD-ROM sales will drop
off altogether.

The main demand in the CD-ROM market is driven by the needs of
home business and home education, according to Dataquest. A
family can easily justify the purchase of a CD-ROM drive
bundled with an encyclopedia on CD as opposed to the $1,700 or
higher expense of an actual book set of encyclopedias, Ryon
said. In addition, other reference materials, medical
encyclopedias, and early learning software titles are also
finding acceptance in the home and small business markets. As
for the rest of the titles out there, Ryon quipped, "There's a
lot of content chasing not many potential buyers."

While there appears to be a nice growth curve ahead of 30 to 40
percent, the steep growth curves hyped by the multimedia
hardware companies are probably not going to occur, Ryon
claims. A handful of companies are doing well, such as Software
Toolworks with a $28 million revenue stream and Compton's in
the $26 to $28 million range. However, the vast majority of
content developers are small shops with total revenue of under

Why all the hype? Ryon says it is in the interest of the
multimedia hardware vendors to make the market sound lucrative.
These companies sell more hardware and get more developers to
make titles for the hardware, Ryon maintains.