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             » Philips Confused Over Matsushita CD-I Reports «

UNION CITY, NEW JERSEY, U.S.A., 1993 DEC 1 (NB) -- Despite widespread
reports to the contrary, Tokyo headquartered Matsushita Electric
Industrial Company, says it has no intention of abandoning the Compact
Disc-Interactive (CD-I) format.  Matsushita appears to have made a
long-term commitment to the manufacture of the 3DO player and CD-I
manufacturer  Philips said it finds Matsushita's statements confusing.

Telegraaf, an Amsterdam newspaper, claims a research and development
director at Matsushita said CD-I was "dated" and was being abandoned in
favor of the newer 3DO format. Several other publications are echoing
the report as well.

However, Matsushita says any reports concerning the abandonment of CD-I
are erroneous. Company representatives emphatically stated that
Matsushita has not stopped developing CD-I and has no intention of
stopping CD-I development.

Representatives from Philips said they are confused as to why
Matsushita feels a need to make a statement concerning CD-I, either
positive or negative. They say the statement is even more puzzling
considering the fact that Matsushita has never brought a CD-I player to
the US market, despite its repeated displays of prototype units at CD-I
trade shows.

A representative at Matsushita told Newsbytes the report appears to be
amisunderstanding. However, the New York Times said Wall Street analysts
are advising clients to sell their 3DO stock now, at a loss, because of
concern that 3DO might not be able to live up to its high claims.
Software developers for the 3DO platform have quietly expressed similar
concerns to Newsbytes.

San Mateo, California-based 3DO, started by Electronic Arts founder
Tripp Hawkins, went public this year without a product and was
enthusiastically greeted by Wall Street. Matsushita picked up the
manufacture of the hardware for the platform and is manufacturing it
under the brand name Panasonic. Contrary to its flying start, 3DO
appears to be struggling. The company reported losses so far this year
and is now in a quiet period upon the issuance of more stock.

CD-I was introduced nearly three years ago, but now has a broad base of
titles available and also offers playback of popular movies on CD
through a partnership with Paramount. Philips is also advertising
heavily in the form of "infomercials" concerning the CD-I player and
products. 3DO is using a similar approach to advertise its product, but
only four titles are available for the unit to date though more are
promised soon.

        This story is © 1993 Newsbytes.  Reprinted with permission.