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news from around the world
Commodore
International
volume 7, issue 2, spring 1992
A publication of commodore electronics limited - nassau, bahamas
Company News
The Commodore Success Story and
From Desktop
Calculator to
Multimedia Magic
It’s a line-up everybody in
Germany knows: "Profi-Line" PCs,
Amiga 500 through Amiga 3000,
C64, CDTV —- big names which
helped Commodore attract the atten-
tion of the computer world last year
as the company celebrated its 20th
year in Germany.
A lot has changed in 20 years.
Remember PET 2001 and VC 20?
This was the lineup in the 1970’s, the
machines which helped launch Com-
modore internationally. Today, they
are almost forgotten. So, too, is the
fact that the company actually got its
start in 1958 in Toronto, Canada,
repairing and servicing office equip-
ment. In those days, electronic infor-
mation technology was in its infancy.
The PC was just a gleam in Com-
modore’s eye.
The company as we know it to-
day got started in 1960 with the es-
tablishment of Commodore Business
Machines Inc. in the U.S.A. At that
time, the company adopted a new
thrust. This was the dawn of a new
era; the changeover from manual to
electronic data handling in the US.
business community was just getting
started. Calculators and large, main-
frame computers replaced manual
business equipment. Demand mush-
roomed, not only from large-scale in-
formation handlers like banks but also
from mid-sized companies. There
was constant demand for faster, more
powerful equipment.
Germany
Commodore
Braunschweig
Factory
The big breakthrough came in
1967: Commodore introduced the
first electronic desktop calculator.
The effect on banking, on inventory
control, on financial markets was dra-
matic. To speed development of even
more sophisticated products, Com-
modore opened the first development
laboratory in what would become the
renowned Silicon Valley of Northern
California.
Commodore Germany
Frankfurt
CONTENTS
Company News
European News
Canadian New
Amiga News
Editorial
CDTV News
Market News
Financial News
Commodore International 1
That’s how California became
the cradle of the first Personal Com-
puter Commodore unveiled at the
National Computer Conference in
Dallas in 1977. The PET 2001 was
the technological marvel of its day
with a whole 4K of RAM on the
motherboard! What was truly revolu-
tionary about the PET 2001 was its
price — only $595. (U.S.) That gave
birth to a motto which is still basic
Commodore philosophy: Better
Technology at Lower Prices.
Commodore PET 2001
Successful
Growth Strategies
In the years following the intro-
duction of PET 2001, the develop-
ment of computer and _ data-
processing technology surged forward
with dramatic speed. Commodore
Commodore VIC 20
made a key, strategic move: It segre-
gated its consumer microcomputers
2 Commodore International
Company News
and professional systems into sepa-
rate divisions. The PET 2001 be-
came the basis of the 8000 series of
computers for technical and commer-
cial use; and Commodore filled the
gap in the consumer market with the
VIC 20 (VC 20 in Germany). The
VIC was an instant hit because of its
ability to display color pictures and
graphics. By 1982, more than one
million units had been sold world-
wide. The first ever computer to sell
that quantity in one year.
C64:
The World’s Most
Successful Computer
The 1980s was the decade of
furious development in the computer
sector. In 1982, Commodore created
another sensation with the introduc-
tion of the Commodore 64, or C64.
The C64 made computer technology
affordable for any household. It was
Commodore 64
a hit in universities, and even used by
major companies. Because of its ex-
cellent color and graphics capabilities
— not to mention its affordability —
the C64 is still in use today despite
the advent of more powerful desktop
computers.
More than 400,000 C64s were
sold in fiscal 1990-1991. No doubt
about it — this was the machine that
popularized the small computer.
More than 11 million units have been
sold worldwide, making the C64 the
best-selling desktop machine in the
history of the industry.
The Founding of
Commodore
in Germany
As Commodore developed a
worldwide reputation, it became a
major force in developing the Euro-
pean computer market. Ten years af-
ter the establishment of Commodore
International, the company estab-
lished a German division (Com-
modore Buromaschinen GmbH) in
1971, with offices in Hanover. Later,
the company would relocate to Frank-
furt.
Over the next few years, Com-
modore also established subsidiaries
in France, Great Britain, the Nether-
lands, Sweden, Italy, Switzerland,
Austria, Belgium, Denmark, Norway,
Portugal and Spain. It didn’t take
long for the German operation to
emerge as a locomotive for Com-
modore’s European sales thrust. Al-
most from the start, the results in Ger-
many have been consistently strong,
with steady growth.
But Commodore is doing more
than selling computers in Europe. It
is also manufacturing in Europe. In
1980, a production and development
facility was established at Braun-
schweig, Germany, a first for Com-
modore in Europe. This was in line
with the company’s preference for its
Own production rather than sub-
contract the work or license out its
brand names. Since the Braun-
schweig plant opened, it has handled
European production of the Com-
modore PC and Amiga lines.
Market Leader in
Microcomputers and the
Amiga Phenomena
After a successful launch into the
MS-DOS market in 1985, Com-
modore has kept bringing out a
Steady stream of new products. The
key words here are PC and Amiga.
The earlier decision to target the pro-
fessional market has been paying off
handsomely, enabling Commodore to
emerge as an undisputed leader in
German microcomputer sales. It
ranks second in the European market
for professional application and fifth
among U.S. manufacturers, according
to the market research institute
Dataquest.
Spurring sales is Commodore’s
innovative multimedia technology,
which integrates the computer func-
tions, plus digital sound and high-
grade animation and video in a single
unit. That is making Commodore the
market leader in multimedia technol-
ogy. BYTE, a leading U.S. computer
magazine, describes the Amiga 3000
as "an impressive machine." For
three years running, the Amiga 500
has been selected "Computer of the
Year" by the German computer maga-
zine CHIP. In 1991, an international
panel named the Amiga 500 the "Eu-
ropean Computer of the Year" for the
second year in a row. This European
award — the Grammy or Oscar of the
European computer industry — only
made its debut in 1990.
Company News
Changing Trends in the
1990s
Besides the mass-market 500, the
Amiga family consists of the 2000
and 3000, which are designed for the
professional market. Sales efforts in
Germany have been re-organized into
four divisions: PCs, Networking,
Amiga and Consumer Products. Each
of these divisions has claimed a major
market niche. Big business cus-
tomers like Thyssen, Batelle-Institute
and the German Federal Railways as
well as universities and many mid-
sized companies report great satisfac-
tion with their Commodore systems
because they are able to tap the con-
siderable know-how and experience
of each division.
In 1991, the German company
unveiled "Profi-line" — a line of prod-
ucts spanning the four divisions.
There is a model in Profi-Line for
every user. The SL 286 is ideal for
German Federal Railways
beginners, the high-powered tower
(T486 -25C) provides the power and.
multi-tasking capability that profes-
sionals and smaller business require.
At the high end are Amiga 3000,
Amiga 3000T and Amiga 3000
UNIX, new product lines which are
bringing more and more professional
users and larger business over to
Commodore. With its complete net-
working product, including Amiga
3000 UX workstations and Intel-
based servers, Commodore is setting
a new standard for systems for busi-
ness and industry.
Now CDTV —
Commodore’sNewest
Multimedia Innovation
Another example of the Com-
modore strategy to keep developing
new markets with new-concept tech-
nology is the company’s world-
leading initiative with CDTV. CD-
ROM technology allows storage of
huge amounts of data on compact
discs that look just like the kind of
CDs used for playing music.
CDTV, or Commodore Dynamic
Total Vision, is the marriage of CD-
ROM with Amiga technology, which
means that graphics stored on a CD
can be brought to the screen with
stunning clarity and brilliance.
ne
Commodore CDTV
This is multimedia carried to new
heights. Following on its long suc-
cess story with PET 2001, VIC 20,
C64, Amiga and Profi-Line, Com-
modore is poised to define the multi-
media product of the 1990’s. For
many months now, leading computer
journals have been talking about
CDTV. For many users, it has already
set a new standard for a multimedia
application.
There’s no doubt about it. At age
20 and 30 respectively, Commodore
Germany and Commodore Inter-
national are poised for success, ready
to meet the challenges facing the
computer industry right into the 21st
century.
Commodore International 3
Commodore is No. 2
in Europe
A total of 7.5 million personal com-
puters were sold in the European market
in 1990. This is the figure released by the
British market research organization,
Dataquest, in its study of August 1991.
According to the study, the Frankfurt
computer manufacturer, Commodore,
with a market share of 12 percent, was
No. 2 in the European market, just after
the market leader IBM with a 15 percent
market share.
In the second quarter of 1991 alone,
a total of 1,775 million computers were
sold in Europe according to Dataquest.
With 11.6 percent market share, Com-
modore continues to hold its position as
No. 2 in the European computer market.
As Commodore’s German Managing Di-
rector, Helmut Jost, said when opening
Commodore’s latest office in Warsaw,
Poland, these figures emphasize the com-
pany’s ability "to expand dynamically
and successfully in spite of a worldwide
stagnating computer market".
A comparison between the Com-
modore sales figures of the second quar-
ter 1991 and those of market leader IBM
clearly indicates that, with IBM computer
sales totalling 14.8 per cent market share,
the company was only just able to main-
tain the edge over Commodore. Another
competitor, Compaq, a company that as
recently as 1989 ranked second in the Eu-
ropean market with a 9.5 per cent market
share, fell back to fourth position with a
6.4 per cent market share in the second
quarter of 1991. Other major suppliers,
such as Apple and Olivetti, have clearly
lost their grip on the European market.
The position of the Frankfurt com-
puter manufacturer stands out even more
if one was to base the turnover figures
and market share on the German Desktop
- PC market. According to the latest in-
formation released by the market research
organization, International Data Corpora-
tion (IDC), the PC industry’s sales
turnover in Germany in 1989 amounted
to around two million computers. Thus,
contrary to previous, more pessimistic
forecasts, PC sales experienced another
4 Commodore Intemational
European News
boom during 1990. German reunificaion,
in particular, had a favorable effect on PC
sales. As.a result, 1990 PC sales to mar-
ket research organizations rose by close
to 30 percent compared with the previous
year’s sales. With a market coverage of
27.7 percent, the IDC study clearly
shows Commodore to be market leader -
in terms of volume of completed deliver-
ies — in the German PC market. Says
Jost: "As far as turnover is concerned, the
company chiefly owes its No. 1 ranking
amongst the top ten suppliers to the in-
creasing market acceptance of the profes-
sional product line sold under the trade-
mark of "Profi-Line", as well as to the
company’s reorganization into separate
PC, Networking, Amiga and Consumer
Divisions."
According to the company, the rapid
growth in sales was also largely due to
the Amiga product line. The company
clearly managed to hold on tight to its
strong position in the market despite the
selection process forecasted by leading re-
search institutions, which had already
been well underway by 1990 and which
will continue to escalate throughout this
year.
However, Commodore is also gain-
ing an increasingly bigger market share
in another market segment. Commodore
has become firmly established in the
fiercely competitive and highly promis-
ing European Notebook market with its
portable computer line.
The Notebook C386 SC-LT
launched on the market in the spring
could even develop into a market hit
amongst the range of mobile secretaries:
It was the first and may be the only
portable computer on the desktop com-
puter market that comes with a modem
and provides access to a BTX and data
transmission facility. Says Jost: "On ac-
count of the increase in sales in all our
product sectors, we are very optimistic
about the company’s future in spite of the
increasingly widespread trend in this in-
dustry to oust the weak from the market."
Commodore Has Some
Impressive Partners in
Germany
To get to be market leader in Ger-
many Commodore has naturally acquired
some impressive partners who use our
products. Some of these customers are
noted here:
DAG:
In the years 1988-1991, over 300
Commodore computers were installed by
the DAG nationwide. These units are op-
erated in the areas of word processing,
bookkeeping and also File-Server in the
network. The DAG operates exclus-
sively Commodore computers on federal,
land, and regional levels.
German Railways (Deutsche Bun-
dersbahn"):
The German Railway has also
worked with Commodore systems since
1987. Important to the decision of the
German Railway were the efficiency and
compatibility of the Commodore Profi-
Line products. All systems from the 286
to the 486 PC are, with the use of special
cards, equipped with low-radiation moni-
tors (according to the Swedish standard)
with increased picture repeat frequency.
The Commodore products correspond to
the German Railway-standard under con-
sideration of economic aspects. Already
over 4,000 professional Commodore sys-
tems are in operation at the German rail-
way. They are similarly used as Stand-
Alone standard systems, as in the area of
office communications and connectivity
to the diverse German Railway main-
frame, locally as well as remote (for ex-
ample, over the German Railway’s own
X-25 network). Commodore has thereby
the largest share by far in installed PCs
with this customer. Among other impor-
tant customers for Commodore, Germany
are the BATELLE INSTITUTE with over
200 sytems, BEWAG AG, DILLINGER
HUTTE with 150 Commodore PCs,
MAHO AG with some 200 systems,
NOELL AG, RHEINBRAUN AG and
VOGEL VERLAG.
Commodore Opens
Office in Poland
Computers made by the Ger-
man Technology Group of Com-
modore are to facilitate the eco-
nomic recovery in Poland and
Eastern European countries. Hav-
ing opened its doors to the West
and having initiated reforms de-
signed to restructure the economy,
Poland has given a clear signal to
the Western industrialized nations.
It is this development that the
Frankfurt computer manufacturer,
Commodore, has now responded
to: By opening up the first repre-
sentative office in Eastern Europe,
the company has indicated its con-
fidence in the Polish and Eastern
European economy.
Says Helmut Jost, Managing
Director of Commodore Germany
and Vice President of Commodore
International on the company’s
commitment in Poland: "By having
a representative office in Warsaw,
at a time when Poland and Eastern
Europe are experiencing a difficult
rehabilitation phase, our company
is making available the entire
range of technical expertise and
know-how of an internationally
operating conglomerate that has
taken us 30 years to acquire." The
leading principle is to create a solid
and future-oriented basis for con-
ducting business by building up a
genuine partnership between East
and West as far as EDP is con-
cerned. For this reason, the con-
cept of cooperation between the
Polish economy and Commodore
comes first. Says Jost: "Modern
computer technology is also a pre-
requisite for economic growth.
Commodore is putting all its bets
on partnership and fairness, not
least through its policy of affordable
European News
technology."
In any case, the starting condi-
tions for a fruitful cooperation are
favorable, indeed: Demand for
modernization and the willingness
of Polish companies to invest in
new and modern computer tech-
nology is greater than ever before.
Even more so now that this market
is faced with complete restructur-
ing following the disappearance
from the market of East German
computer manufacturer, Robotron,
whose products were once leading
in the Polish and Eastern European
PC markets. A challenge which
Commodore is ready to accept
with all its technical expertise and
know-how. Large firms, medium-
sized and small businesses, but al-
so schools, banks and insurance
companies as well as municipal
services are increasingly resorting
to Commodore solutions. By
opening up its representative office
in Warsaw, the Frankfurt technology
group is able to satisfy the growing
demand.
For this reason, Commodore
will now be represented on the
Polish market with its entire range
of products in order to be able to
meet the market requirements.
Thus, the beginner’s models C64
and Amiga 500 for the school and
training sector will be just as read-
ily available as professional PC
and network solutions for the in-
dustrial sector. This means that
the product lines of the four cor-
porate divisions, PC Division,
Networking Division, Amiga Di-
vision and Consumer Division,
that are available in Western Eu-
rope will also be sold on the Pol-
ish and Eastern European market.
Says Jost: "With our effective and
low-cost range of information
technology products we want to
be actively involved in supporting
the rehabilitation process of the
Polish economy."
Commodore Warsaw opera-
tion will be headed by Andrezcy
Draczowsky who will handle
distribution, marketing and sales.
Commodore International 5
Dr ay
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World of Commodore
1991 Continuing the
Tradition
In December 1983, celebrating 25
successful years in business, Com-
modore hosted the first ever World of
Commodore in Toronto, Ontario. The
three year old VIC-20 had already
sold over 1.5 million units to become
the industry’s first "platinum" seller.
Its successor, the C64 launched in
August 1982, was shipping over
40,000 machines per month, well on
its way to becoming the number one
selling computer of all time with sales
to date of over 15 million!
As the first North American inter-
national computer show orchestrated
by a single computer company, World
of Commodore was an ambitious un-
dertaking. With the help of show
managers Hunter Nicholas Inc., it
was a resounding success attracting
over 25,000 attendees. It was also the
smallest World of Commodore ever.
At the second show, held in 1984,
new products and new ideas were
everywhere. One of the most innova-
tive was the MusicMate from
Sequential Corp. of San Jose, CA.
They introduced a musical keyboard
that connected directly to the Com-
modore 64, a forerunner of today’s
elaborate musical peripherals.
1985 was a watershed for new
products from Commodore. First and
foremost was the launch of the Amiga
1000 — perhaps the most exciting new
computer of the year. Also intro-
duced at WoC-III was the Com-
modore 128, a higher performance
home computer that was compatible
with the C64’s 6000 software pro-
grams. In addition, Commodore took
its first steps in the MS-DOS arena
with the launch of PC10 and the
PC20.
In 1986 Commodore displayed its
vision of the future of computing.
Both the C64 and C128 were to in-
clude GEOS, an early version of the
graphical user interfaces that now
dominate computing. Another prod-
6 Commodore International
Canadian News
uct almost overlooked in 1986, but a
vital component in Amiga computing
today, was the Amiga Genlock 1300
that enabled Amiga computers to
integrate with external video sources.
On the MS-DOS side Commodore
joined the 8026 fray with the PC40
equipped with a full 1 MB of RAM.
1987 saw attendance jump over
40,000 for the first time as WoC grew
in popularity. Enthusiasts flocked to
see the two new Amigas — the power-
ful affordable 500 and the expandable
2000 which offered DOS compatibil-
ity for the first time. Real-time 3-D
animation became a reality on the
Amiga with the introduction of
VideoScape 3-D from Aegis.
Celebrating Commodore’s 30th
birthday, the sixth annual World of
Commodore in 1988 was a showcase
for the diversity of Commodore’s
product line. The C64 continued its
amazing run by actually improving
on 1987 sales! The Amiga joined the
VIC-20, the C64 and the C128 in the
ranks of Commodore’s million sellers
club. And the Commodore PC60,
based on Intel’s 386 chip, helped
make Commodore Canada’s second
largest manufacturer in the MS-DOS
marketplace.
In 1989 the Amiga truly came of
age. While the C64 kept selling and
Commodore’s PC computers gained
acceptance in business and govern-
ment markets, World of Commodore
*89 was a coming-out party for the
Amiga. Developers showered the
market with software that took ad-
vantage of the Amiga’s unique capa-
bilities in color processing, anima-
tion, sound and video. For Amiga
fans, this was your show!
Last year Commodore took an-
other step into the future of comput-
ers. Hailed as the C64 of the
nineties, CDTV merged CD-ROM
technology with the Amiga operating
system to make interactive TV a real-
ity. Competing for attention were
NewTek’s incredible Video Toaster,
an add-on card that turned an Amiga
into a video production studio, and
Commodore’s own Amiga 3000, a
sleek, powerful new Amiga.
The 9th Annual World of Com-
modore carried on the tradition. Tak-
ing place on December 6, 7 & 8th last
year, the show was again produced
by The Hunter Group in conjunction
with Commodore and was held at
Toronto’s International Center. Many
of the exhibitors from previous years
returned with new and improved
products and several new companies
may turn into long term successes.
Highlights of the Show
With around 30,000 people at-
tending the show, one of the major
highlights was that attendees were
invited to make their own rock videos
using an Amiga with Toaster and a
Pioneer Laser disc.
Also featured was an Amiga Art
contest using Deluxe Paint IV. Con-
testants were given 45 minutes to
draw a picture which was then print-
ed using a Sharp color printer. At the
end of three days approximately 200
entries had been submitted. The
renowned artist, Charles Patcher, was
commissioned to do the judging and
choose a winner.
Overall with around 70 exhibitors
showing off the wide world of Com-
modore computers and the very ex-
tensive back-up of peripherals and
software, the show was once again a
great success. To Commodore it was
a wonderful showcase and to the
attendees an unique opportunity to
evalulate all there is available to
enhance their Commodore computing
in 1992. Congratulations to all in-
volved in making the show a success
and part of Commodore life in
Canada.
Commodore Teams With
Kawai to Co-Market
Computer Music Systems
Commodore Business Machines
Canada Ltd. and Kawai Canada Music
Ltd. have announced a co-marketing
arrangement designed to facilitate the
sales and purchasing of computerized
music systems.
The deal calls for joint marketing
support and bundling of Commodore’s
Amiga computers and Kawai’s electronic
keyboards, music software and MIDI de-
vices. "This type of arrangement goes
beyond simply promoting a concept. To-
gether we are delivering a straight for-
ward, easy to implement solution to a
rapidly growing marketplace," comment-
ed Tom Shepherd, Commodore’s Director
of Marketing.
Consumers currently deal with four
sources to get a computer, a keyboard,
music software and a MIDI interface. By
bundling the four components, Com-
modore and Kawai are ensuring compati-
bility and providing consumers with a
functional home recording studio at an
attractive entry price.
"Our expertise in the music industry,
particularly electronic instruments, and
Commodore’s experience in multimedia
computer application creates a definite
synergy," commented Rob McCardle,
Kawai’s Division Manager, Consumer
Products. "The fact that we are both ex-
perienced in selling to the home market is
a benefit as well."
Co-marketing arrangements at the
manufacturer level are a growing trend in
the retail business. The bundling of prod-
ucts from different vendors to offer a
complete solution has traditionally been
done by dealers. When done at the man-
ufacturing level, packaging and product
design become part of the mix.
"Our approach to the home market is
to create packages that are usable in the
home," added Shepherd. "By creating
and delivering applications that appeal to
the creative side we are going beyond the
traditional belief that people will actually
balance their cheque book or file their
recipes on a home computer."
Initially, two bundles are being made
available to both Commodore dealers and
Kawai dealers. The "FunLab" music sys-
tem combining a Kawai FS680 keyboard,
FunLab Music Software (including a
MIDI interface) and an Amiga 500 com-
Canadian News
puter with a monitor. The "FunLab Ju-
nior" package combining a Kawai
MS710 keyboard, FunLab Jr. Music
Software (including a MIDI interface)
and an Amiga 500 computer with a mon-
itor.
Established in 1927, Kawai is a
world leader in the manufacture and sale
of pianos, electronic organs and electron-
ic musical instruments. The company,
with over 5,800 employees worldwide,
also produces sporting goods, toys, furni-
ture, housing products, and fabricated
metal.
Canadian Broadcasting
Centre to Feature Amiga
Computers in Touchscreen
Building Directory
The Canadian Broadcasting Corpo-
ration (CBC, Canada’s state-owned radio
and TV network, has contracted with St.
Claire Videotex Design Limited, Toronto,
to create, configure and install a building
directory for the new Canadian Broad-
casting Centre, using a network of 40
Amiga 3000 computers from Com-
modore.
The new office tower, scheduled to
open in June, will be equipped with an
Amiga-based interactive touchscreen
building directory that locates any indi-
vidual, department or project team, and
provides animated directions.
The Amigas will be mounted in
attractive wheelchair-accessible kiosks
throughout the facility. First-time users
need only to touch a screen in response
to video or audio clues (in English or
French) to begin a self-guided tour of the
directory. Experienced users may bypass
interim steps with "wildcard" entries that
immediately call up specified informa-
tion.
Donna Bevelander, senior project
planner, said CBC desired a sophisticated
electronic building because of plans for
the building’s size, the network’s large
and constantly changing workforce, a
steady flow of guests and vendors, and
the CBC commitment to a bilingual
workplace.
"The Canadian Broadcasting Centre
will encompass 1.7 million square feet
on 14 floors, each of which covers 3 1/2
acres," Bevelander said. "We are consol-
idating offices, production and broad-
casting facilities that are now in 28 loca-
tions around Toronto. The building will
house approximately 3,200 employees."
A Multilingual Facility
"Had a traditional building directory
been erected, employees and visitors
would get off one of the 23 elevators and
face a 10-foot by 20-foot wall of tiny text
in two languages and little arrows that
didn’t tell you anything," Bevelander said.
"With the St. Clair building directory
in place, employees and visitors will get
off the elevator and find a friendly touch-
screen that asks you if you prefer your in-
formation in English or in French."
St. Clair Videotex is a designer, de-
veloper and producer of custom interac-
tive multimedia solutions for corporate
and public sector clients.
H. Douglas Peter, president of St.
Clair, said they chose the Amiga comput-
er for the CBC application because it of-
fers flexibility, multitasking and un-
matched multimedia capabilities.
"We will need to integrate and fre-
quently update information for the cen-
ter’s system from various databases — the
PCs they use to process telephone direc-
tory information, the way they use to
process architectural information - and
the Amiga 3000 is flexible enough to do
that," Peter said.
"We also have to maintain a 99.9
percent service level, meaning the system
has to be accessible to users virtually all
the time,” Peter said. "With the Amiga’s
multitasking capabilities, we can achieve
that by running the program that updates
information, monitor system performance
and analyze user preference in the back-
ground, without interrupting users."
"St. Clair also was sold on the
Amiga’s multimedia capability. Its built-
in multimedia tools allow us to mix text,
graphics, animation and audio to create
an unusually good level of communica-
tion between the user and the informa-
tion," Peter said.
In addition to the 40 Amiga 3000s
located in kiosks, hardware for the CBC
installation will include an Amiga 3000
Master Station and an Ethernet LAN.
Software for the installation is comprised
of AmigaVision authoring language, St.
Clair’s Control Panel, ProSound audio
editor, CDTV and Deluxe Paint for
graphics, an AutoCad and dBase/ Super-
Base interfaces.
Commodore International 7
Commodore Delivers on
Multimedia Computing
Promise
When Commodore introduced the
Amiga in 1985 and established practical
multimedia computing, many thought of
the technology as destined only for spe-
cialized markets. Unlike some of history’s
"visionary" technologies that never man-
aged to find a market of reasonable appli-
cation, multimedia is delivering on the
promise that it heralded five years ago.
The U.S.A. market for computers
used in multimedia-type applications is
expected to grow to about $11.4 billion
by 1995, according to Desktop Presenta-
tion. Multimedia technology has grown
steadily through an increasing number of
applications, and has a large and loyal
audience.
As a result, many major computer
manufacturers have plans to provide a
multimedia class machine before 1995.
Sales of interactive videodisc courseware
(a key multimedia application for all
markets) have already exceeded $500
million and are projected by SK & A
Research to grow to $2.5 billion annually
by 1992.
The "promise" of multimedia origi-
nally was a new capability utilizing mul-
tiple forms of media to design and develop
programs that helped sell a product in a
store, sell management on a new project,
and educate students in exciting, interac-
tive ways. Multimedia now has come to
mean that and much more.
What Is Multimedia?
Commodore defines multimedia as:
"A method of designing and integrating
computer technologies on a single plat-
form that enables the end user to input,
create, manipulate and output text, graph-
ics and audio and video, utilizing a single
user interface."
Multimedia integrates basic informa-
tion processing with animation, sound,
color graphics and video. There is a mis-
perception that multimedia is a single ap-
plication when it is really a technology or
group of technologies.
The Amiga was designed as the first
microcomputer with multimedia capabili-
ties and is poised to maintain its technol-
8 Commodore International
Amiga News
ogy leadership in the 1990s with its line
of delivery and development products in-
cluding CDTV Multimedia Player, the
Amiga 3000 CPU and the AmigaVision
authoring system.
What Can Be Done With
Multimedia?
Early multimedia users included
graphic artists, professional video and
music users, and producers who took ad-
vantage of the Amiga’s superior graphics
capabilities and multitasking ability.
Educators also developed interactive
video presentations -- video and computer
programs running in tandem under the
control of the user, providing full motion
video and sound.
Interactive video applications are
popular and effective in the following
segments:
¢ Education, where $4-5 billion in
federal U.S.A. funding is available for
basic skills, adult education and correc-
tional training, according to Educational
Turnkey Systems.
¢ Corporate, industrial and gov-
ernment training, with computer and re-
lated hardware expenditures of about
$1.8 billion annually, according to Train-
ing Magazine.
¢ Retail point-of-sale, with expect-
ed sales of about $200 million, according
to Exhibit Builders Magazine.
The initial growth of multimedia was
slow in-part because the technology
lacked an easy-to-learn, simple-to-use
authoring system. Although versions of
authoring systems are available for a
number of computers, they generally re-
quire the knowledge of complex pro-
gramming languages — well beyond the
reach or patience of the average user.
Thanks to AmigaVision, multimedia
is no longer for the computer elite. Ami-
gaVision is an iconic, flow-chart-based
authoring system that takes the confusion
out of authoring multimedia presenta-
tions or courseware. The Amiga’s com-
petitive pricing makes it accessible; and
together with the affordable Amiga-
Vision, the Amiga provides an attractive
price performance in a multimedia ma-
chine.
Where is Multimedia Now and
Where is it Going?
Multimedia applications used to be
expensive, physically unwieldy and uni-
versally complex. Through the evolution
of a number of technologies such as
video projectors, videodiscs, CD-ROM
and authoring software, multimedia is be-
coming more than just the latest industry
buzzword; it represents the most signifi-
cant new application area for personal
computers.
With the Amiga, Commodore is a
leader in a number of markets, including
3-D animation and modelling, paintbox
and character generation. For example,
in the professional video market, the
Amiga’s share has grown to nearly 70
percent of the animation segment, ac-
cording to Sheer & Chaskels on Re-
search. Keyboard Magazine says the
Amiga has a 15 percent share of the pro-
fessional music market.
The machine’s integrated technol-
ogy, storage capacity, graphics chips, ver-
satility, on-board 4-voice, 2 channel au-
dio and multitasking make it an ideal per-
sonal workstation for demanding profes-
sional applications in key markets.
Computer-Based Training
Computer-Based Training (CBT) is
of great interest to education, business
and government markets. With CBT, the
learner determines and affects a pro-
gram’s flow and content by responding to
instructions at predetermined points.
So much of CBT is self-directed, it
is important to be able to develop pro-
grams that are highly interactive.
Though self-directed CBT won’t substi-
tute instructors, thousands of school
teachers and instructors who struggle
with overcrowded classrooms will use it
to provide more tailor-made learning pro-
grams for students. Students will be able
to spend more time improving particular
needs and enhancing specific talents.
Professional Video
Fastest growing in the video seg-
ment is the computer-based graphics
industry. Computers primarily used in
this segment are character generation,
paint and 3-D modelling animation
systems.
Presentations and Displays
The Amiga’s ability to perform
real-time animation makes it the com-
puter of choice. For example, in Hol-
lywood it was used to develop titles
for "Three Men and a Baby"; and in
Miami, the national Football League’s
largest electronic scoreboard is con-
trolled and animated by the Amiga.
Amiga News
Professional Music
The professional music market
comprises $53 million in computer
equipment, according to Keyboard
Magazine. This segment includes
music teachers and students, musi-
cians who use electronic or synthe-
sized music, composers and song
writers.
These users have turned to the
Amiga because of its built-in four-
voice, two-channel audio and the
machine’s line of professional soft-
ware and MIDI interfaces with the
ability to handle real-time sequencing
and digital editing.
EDITORIAL
Usually this editorial is about
Commodore but this time it is about
the dramatic effect that computers can
have on the lives of less fortunate
people. Next to this editorial is a
piece written on a computer by
Michael Wells who was written off by
much of society as being not only
"physically handicapped" but also
"mentally retarded". When you read
this piece you may find this latter
statement hard to believe. Because of
his "physical challenge" every letter
had to be tapped out with a rod at-
tached to his head.
I got to know Michael through
my wife who has been helping him.
Michael is a Bahamian who since
birth had no physical control over his
arms and legs and can "hardly man-
age the very simplest grunt of "yes"
and "no" for speech. Everyone
assumed he was also mentally handi-
capped as he had no means of com-
municating. This was not true.
Michael taught himself to spell by
watching Sesame Street. But until the
computer came along all he could do
was attempt to communicate by tap-
ping at letters on a big board while
someone watched. A microcomputer
has dramatically changed this and his
life, as you will realize from this arti-
Cle. The article is done by a man who
for the first 20 years of his life had an
impenetrable wall through which he
could not communicate with the
world. But for his own incredible de-
termination, hidden intelligence, hap-
py nature and a computer this might
still be so.
For 16 years I have been involved
with microcomputers since launching
the Commodore PET in the U.K. For
all the amazing things that have de-
veloped from the start none can
probably match in simple human
terms the ability of wordprocessing to
open a window on the world.
Michael is a remarkable human being
who because of his almost complete
physical handicap could well be con-
sidered mentally retarded. Michael
would also have never written the
article I include here. Indeed Michael
could probably have never communi-
cated with me when I have met him
other than with his infectious and
remarkable smile. Technical progress
and human progress make a happy
marriage. Please read Michael’s
article.
Christopher "Kit" Spencer
Editor
Commodore Worldwide News
Commodore Electronics Ltd.
Sassoon House
PO Box N10256
Nassau
“= Bahamas
Being Physically Challenged
Does Not Mean Mentally
Retarded
When people see a person in a
wheel chair, they assume that person
is mentally retarded. Some people
don’t know the difference between
mentally retarded and _ physically
challenged. Just because a person is
in a wheel chair does not mean that
the person is mentally retarded. A
physically challenged person can
think for him or herself, they have
ambitions, just like any normal per-
son. They can be just as intelligent,
they can make important decisions,
they can even be creative. He or she
might not be able to talk, to express
their thoughts, but that does not mean
they don’t understand what is going
on around them. Their brain works
just like any normal person, although
the rest of their body may not. Peo-
ple need to stop judging the book by
its cover: they should read the book
before they pass judgement. I’m a
physically challenged person. When
people see me they assume that I’m
mentally retarded, but I’m not men-
tally retarded. I’m just physically
challenged. That goes to show that
even doctors don’t know everything.
People just don’t understand that a
person could be physically challenged
without being mentally retarded.
People should treat a physical chal-
lenged person as normally as possi-
ble, and not think of a physically
challenged person as being mentally
retarded.
Michael Wells
Commodore International 9
Amiga News
What Videography Magazine Had to Say About the Amiga
Perhaps an indication of just how important the Commodore Amiga has become to the video industry was
illustrated last year when the North American magazine Videography devoted a 30 page special report exclusively
to our computer. We very much appreciate their support and recognition of the value of the Amiga within their
community.
Naturally we are unable to reproduce here the full text of their report but we would like to include a selec-
tion of quotes.
Jim St Lawrence: "Of the eleven
different computers I’ve acquired in the
last 14 years, the Amiga is the most fun.
The Amiga is a phenomenom and a very
important one. It can be seen as a kind of
low-priced tool in a very high priced in-
dustry. In a way, it represents the future,
when video tools are a dime a dozen, and
anyone can make a video. Talent and dis-
tribution, however, are another question."
Todd Rundgren: "What’s exciting
about the Toaster to me is that it brings it
within the realm of possibility for some-
one like a college art student to make this
their thesis. They simply get themselves
an Amiga and a Toaster, learn how to use
it, and realize their vision in this new art
form. They don’t have to have a lot of
money and they don’t have have to call in
a whole lot of outside help."
Peter Lulleman: "There are a num-
ber of high-end professional units that
work with the Amiga today and produce
spectacular results at a fraction of the usu-
al price. Today the graphics and video for
the Amiga have reached a point where
they can be considered serious tools by
the video professional. Developers, driven
by a very cost-conscious market, have
produced products for the Amiga that
retail for only a fraction of the cost of
similar products on other platforms."
Ray M. Unrath: "With only one ex-
ception, all makes and models of "low-
cost" personal computers output video-
graphics in a sequential scan raster format
- not 2:1 interlace, and certainly not the
TV specs of 525 or 625 lines. So how can
they work in television? In all cases, add-
on hardware/software provides in essence,
a "standards converter." The one excep-
tion is the Commodore Amiga."
10 Commodore International
Christopher Koler: "The Amiga is
widely acknowledged as an excellent
microcomputer for video use. In fact, in-
dependent research (Sheen & Chaskel-
son, PVM IV 1990) reports the Amiga as
the overall leading system across a num-
ber of application categories within the
professional video industries today.
This is as compared to both dedicat-
ed video devices, as well as microcom-
puters. There are specific reasons for this
broad adoption of the Amiga as a pre-
ferred video system.
The Amiga is the only microcomput-
er that was designed and built to be espe-
cially video oriented. This means that, as
a system, it has integrated both video and
computer technology.
The Amiga has been a leader in the
microcomputer revolution of delivering
practical, quality 3D imaging for un-
precedented affordability and ease-of-
use."
Peter Lulleman: "Don’t look now,
but the Amiga is increasingly being used
as a character generator (CG) in video
production work ranging from special-
event market, to PBS stations, to corpo-
rate video, to cable TV.
There is a valid reason for this. Not
only is the Amiga modestly priced but
over the years very powerful CG pro-
grams have been created specifically for
this computer. Again, what set the Amiga
apart from all other personal computers is
its powerful graphics capability.”
Jim Carey: "The support of the
Amiga community is one of the major
assets in working with this platform.
There is an undeniable feeling that we
have the best computer system for video
production."
Walter Williams: "A lot of the
projects that I work on don’t have large
budgets, so the Amiga allows me to
produce very cost-effectively. Also it
gives me a lot of control over my designs
and how the finished product will look.
I’m able to do things, like animated
bumpers, that would not be able to be
done on a modest budget with traditional
video equipment. I like working with the
Amiga because I’m able to do everything
myself, and many techniques I’ve learned
on the Amiga are applicable to most of
the higher-end systems."
Michael Grotticelli: "Anyone who
still doesn’t understand that the Com-
modore Amiga is a professional video
production tool needs only to look at
who’s using it to be convinced. From
high-end corporate production to the
special-event videography market, the
Amiga computer can be configured as an
effective system for everything from
paint and 3-D animation to effects and
editing.”
Keith Nealy: "The Amiga is
screaming ahead again. I have seen some
things that are happening in the 24 bit
area relating to paint and animation that
literally blew me away. For me, the
beauty of the Amiga is that it was
designed from the ground up to be
compatible with video. Also in the arena
of price performance, there’s nothing that
can touch the Amiga."
John Vernon: "As far as durability
to stand up to the rigors of everyday
production we haven’t experienced any
problems. The Amiga is as reliable in
the control room as any of the
‘dedicated’ video components we use."
Commodore
International Announces
CDTV Consortium Japan
Commodore International has an-
nounced a joint effort to form "CDTV
Consortium Japan" (the Consortium)
with Mitsui & Co. for the purpose of pro-
moting and developing CDTV players
and titles in Japan.
Commodore and Mitsui began invit-
ing other Japanese companies to join the
Consortium prior to the opening of the
Tokyo International Multimedia Expo
791. Commodore, Mitsui & Company
and Dai-Nippon Printing Company, one
of Japan’s largest printing companies, are
the managing companies to disseminate
information on CDTV to members. The
Consortium will develop (1) new soft-
ware titles using multimedia techniques
including motion pictures, and (2) new
products on the CDTV platform. Japan
Electronics Publishing, PCM Complete
and others have already commenced
planning for the development of software
titles in Japanese. ASCII and a number
of other Japanese companies have ex-
pressed an interest in joining the CDTV
Consortium Japan. Japanese companies
interested in the multimedia industry are
expected to join the Consortium, and a
full list of members will be announced in
the near future.
The CDTV player, which is already
on sale in the U.S.A. and Europe, is the
first consumer interactive multimedia
player to combine the worlds of the com-
puter and CD-ROM. For businesses and
consumers, CDTV simultaneously plays
audio and displays video, graphics and
text data in an unique way. The first CD-
ROM multimedia player for TV home
use, CDTV connects to a TV just like a
VCR and is compatible with virtually
any television or monitor.
CDTV has been well received since
its launch a few months ago and is devel-
oping an avid following. The large
memory capacity and interactive func-
tionality of CD-ROM technology enables
CDTV to provide various types of infor-
mation, presentations, educational mate-
rials, technical manuals and product cata-
logs for business use, as well as titles for
music, information, education, entertain-
ment and games for consumers. CDTV
has wide applicability in vertical markets
like point-of-sale displays, corporate
training devices and information kiosks.
Currently, the CDTV Consortium
Japan members are developing titles for
CDTV News
these vertical and other markets. In Europe
and in the U.S.A., over 100 titles have
been released.
New Accessories Expand
Capabilities of
Commodore CDTV
Interactive Multimedia Player
Commodore introduced a full line of
accessory products that expand the capa-
bilities and facilitate use of its CDTV
Interactive Multimedia player at the Con-
sumer Electronics Show in Las Vegas.
The new peripherals include a full-size
Qwerty keyboard, 2-button mouse, flop-
py disk drive, trackball controller, video
Genlock and 64K and 256K personal
memory cards.
Commodore is also offering a com-
puter enhancement pack, the CDTV-P,
which bundles the keyboard, mouse,
floppy disk drive and AmigaDOS operat-
ing system (the "Appetizer" software
pack) together to enable the CDTV play-
er to be expanded to an Amiga personal
computer.
"The CDTV player is a revolutionary
product and is designed specifically to
accommodate peripheral products," said a
Commodore CDTV spokesman. "One of
CDTV’s strengths is that it can be easily
and affordably expanded into an Amiga
personal computer. Commodore is intro-
ducing three accessories that transform
the CDTV player into a computer: a key-
board, a floppy-disk drive and a mouse."
The CDTV keyboard is a fully-
functional, wired, detachable 94-
keyboard. It includes 10 function keys as
well as a separate numeric keypad and
separate cursor keys for maximum capa-
bility. The CDTV floppy-disk drive is an
external drive for 3.5" disks and there is
an infrared opto-mechanical mouse with
2-button design functionality. A plug-in
2-button mouse is also available.
"Expanding the CDTV player into an
Amiga computer allows consumers to
access the library of more than 2,500
Amiga titles already in the market," con-
tinued the CDTV spokesman. "From
word processing to home finance to
games, there are CDTV titles for every-
one in the family."
In addition, Commodore offers a
trackball controller which increases
speed and control for fast-paced interac-
tive multimedia titles such as
action/adventure games and _ sports
simulations. The trackball controller
operates through an infrared remote
control or a plug-in cable.
There is also a video Genlock card
which synchronizes visuals from CDTV
applications with video from a cam-
corder, videotape or live television
broadcast and enables the combined
signal to be recorded onto a VCR. The
Genlock is switchable between Video-
Only, Combined (CDTV plus Video) or
CDTV-Only and is controlled by the
standard remote control.
Commodore is also introducing two
Personal Memory Cards for use with the
CDTV player. The CDTV Personal
Memory Cards or CDTV-PMC look like
credit cards and plug directly into a spe-
cial slot in the front of the CDTV player.
They come in two sizes — PMC-64k and
PMC-256k — and provide an easy, conve-
nient way to save information for future
use. Selected CDTV titles can utilize a
PMC to save a position or scores in
adventure games, store an incomplete
picture from painting programs, or pro-
vide a "bookmark" or save text of refer-
ence titles.
In addition to new CDTV computer-
expansion accessories, Commodore also
offers the "appetizer" software package
which incorporates four separate pro-
grams on a single floppy disk. Each pro-
gram, "Write," "Paint," "Music," and
"Tiles" are simple and easy to use, and
take advantage of the power, speed and
versatility of the Amiga format.
The disk contains "Write," a word
processor; "Paint," a mouse-driven
graphic paint program that provides a
large palette of colors, paint tools and
sophisticated functions such as flipping,
scaling, rotation and 16 levels of zoom
magnification; "Music" a full notation
editor and music player that uses samples
sounds and standard music notation to
create and playback songs and composi-
tions; and "Tiles," a video game that
challenges the user to unscramble a jum-
bled picture before time runs out. "The
‘appetizer’ is just that — a sample of the
programs that have been developed for
the Amiga system, that now are available
to owners of the CDTV player with these
accessories,” said the CDTV spokesman.
Commodore International 11
Exciting New Titles
for CDTV Applications
Library
Commodore previewed more than 20
new titles for the CDTV Interactive Mul-
timedia applications library at the Las Ve-
gas Consumer Electronics Show in Jan-
uary. Commodore has now introduced
approximately 80 titles for CDTV and
plans to double that number in the next
few months. The new titles include an
action adventure from Lucasfilm Games,
Indiana Jones and the Last Crusade; a
jump and run arcade game, Prehis-
torik; North Polar Expedition, an educa-
tional learning title; and Time Table of the
Arts and Entertainment, the latest addi-
tion to the Xiphias Time Table of History
series of reference discs.
"From exciting interactive games to
innovative reference discs, these new ap-
plications expand the CDTV library to
offer families the best variety of multime-
dia entertainment and learning," said a
Commodore CDTV spokesman.
Indiana Jones and The Last Crusade
from Lucasfilm Games brings the adven-
ture of the smash hit movie right into
your living room. Travel with Indiana
Jones, in the quest for the Holy Grail.
Enhanced high resolution graphics, ani-
mation and Compact Disc-quality music
from the rousing John Williams score,
combine to make this the ultimate version
of the award-winning graphic adventure
game. This Lucasfilm title will be
available in the first quarter of 1992 from
CDTV Publishing at a suggested manu-
facturer’s price of $49.95.
Jump and run arcade games, so pop-
ular with young game enthusiasts, reach a
new level of fun and humor with Prehis-
torik from Titus. There is a laugh a
minute as you play the role of a cave man
in search of food. The sound effects add
enjoyment to the well-executed graphic
animations of this new CDTV title. Pre-
historik will be available in the first quar-
ter of 1992 at a suggested manufacturer’s
price of $49.95.
The multimedia division of Virgin
Games gives you the opportunity to lead
an expedition to the top of the world from
the comfort of your living room or class-
room with its latest title for the CDTV
player, North Polar Expedition. De-
signed for individual or group play, this
simulation, based on an actual expedi-
tion, teaches geography, social studies,
planning and interpersonal skills. Its
12 Commodore International
CDTV News
graphics and sound effects are so realistic
that you’ll turn up the thermostat. North
Polar Expedition will be available in the
first quarter of 1992 at a suggested manu-
facturer’s price of $59.99.
Imagine the fun of learning a new
language when you have one of Europe’s
most popular comic strips to help you. In
an interactive comic book format, Asterix
and his friends teach you to speak and to
read while having fun. Asterix et Fils for
learning French is the first in a series to
be released for the English-speaking mar-
ket. In addition to seeing the cartoons,
hearing the words spoken and seeing the
text, the titles incorporate a translation to
English and teacher notes to explain idioms
and other special features of the language.
One of the most valuable features is the
ability to record your own voice pro-
nouncing foreign phrases. You can then
compare your accent to the voice on the
disc by playing them both back. This fea-
ture uses the Voice Master audio digitizer
and microphone form Microdeal. Asterix
et Fils, books one and two, are available
now from Eurotalk for a suggested retail
price of $49.95 each.
From the first cave paintings to to-
day’s computerized animation, the Time
Table of the Arts and Entertainment from
Xiphias, explores the most significant
events in our global culture. With more
than 4,200 original stories enhanced with
multimedia effects that include zoom-in
maps, bibliographic and museum refer-
ences, pictures or animations, and music
sound segments, The Time Table of the
Arts and Entertainment lets you discover
the artists, writers, and performers from
all ages at the touch of a button.
"Like our two previous CDTV titles,
The Time Table of Science as Innovation
and Time Table of Business, Media and
Politics, the Arts and Entertainment disc
offers families a new and lively way to
study history,” said Peter Black, Xiphias
president. Time Table of the Arts and En-
tertainment is scheduled for release in
February 1992 at a suggested price of
$50.95.
Other CDTV titles recently intro-
duced include Guinness CDTV Disc of
Records, which brings the best-selling
book of fascinating feats and achievements
to life with audio-visual tours, animation,
sound and pictures; Falcon, a flight simu-
lator featuring video clips and voice-
over based on actual dogfights; and the
American Vista Atlas, the multimedia
tour of the United States which boasts
more than 1,000 photographic images,
hundreds of high-definition maps, fasci-
nating cross-referenced facts and an au-
dio collection of regional folk music and
spoken text.
In addition to expanding the CDTV
library, Commodore U.S.A. has also
bundled two of the most impressive
CDTV titles with the player. For a limit-
ed time, consumers who purchase the
player also receive The New Grolier
Electronic Encyclopedia and Lemmings.
The single Grolier Encyclopedia disc,
which contains all 21 volumes of the
Grolier American Academic Encyclope-
dia, has more than nine million words,
thousands of color photos and graphics,
and audio ranging from calls of exotic
birds to the music of great composers.
Lemmings is the award-winning, fast-
paced adventure game in which players
have to lead as many cute, hyperactive
lemmings as possible through each level
of play. This bundling offer represents a
value of almost $450, based upon sug-
gested retail prices.
The CDTV library boasts reference
titles such as Dr. Wellman: Family
Health Advisor, The American Heritage
Illustrated Encyclopedia Dictionary, the
Complete Works of William Shake-
speare, New Basics Electronic Cook-
book and the World Vista Atlas. Arts and
leisure titles include the GardenFax se-
ries and the Family Circus Video Titler.
Music lovers will find several music ap-
plications of interest, including three
Karaoke titles which utilize the add-on
video Genlock feature of CDTV; Com-
poser Quest from D.T.s; and Musicolor
from Virgin Multimedia, which teaches
music notation and composition and is
based on the world-renowned teaching
method of Candida Tobin.
Educational titles range from chil-
dren’s multi-lingual interactive readers
Cinderella and The Tale of Peter Rabbit;
My Paint, an electronic coloring book;
and self-discovery titles like Fun School
and A Bun For Barney. There are also
perception skills appplications like Mind
Run J and II and language instruction titles
like the Asterix series and LTV English.
4
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In addition to CDTV appplications,
the CDTV player also plays convention-
al audio Compact Discs and the new
music industry standard CD+Graphics
(CD+G). CD+G, of which there are
many titles currently available, brings a
new dimension to in-home music enter-
tainment — graphics provide on-TV
annotation and illustrations which play
along with the music. CD+G on-screen
images takes a variety of forms — pho-
tographs, translations, librettos, atmo-
spheric illustrations, notation, commen-
tary, lyrics and more. Warner New Me-
dia has released a collection of CD+G ti-
tles, including classical music discs from
Beethoven, Mahler, Mendelssohn, Liszt,
Bach and Mozart.
The CDTV player represents a
major advance in technology and capa-
bility over any commercially available
format, combining audio, video, graph-
ics and computer interactivity into a
single, Compact Disc-based system.
The storage capacity of the compact disc
is enormous — the equivalent of more
than 250,000 pages of typewritten text.
This capacity enables developers to
create applications which combine un-
paralled levels of interactivity with vivid
graphics and sound.
Most CDTV titles have suggested
retail prices ranging from $39.95 to
$79.95. In the U.S., the CDTV player is
supported by Commodore’s industry-
leading CommodoreExpress program.
This program features a toll-free cus-
tomer "hot line" — 1-800-662-6442 —
where Commodore-trained support pro-
fessionals are on duty 24 hours a day,
even weekends and holidays, to answer
questions. The program also features a
one-year limited warranty and free pick-
up and delivery in the U.S. by Federal
Express for warranty product repair.
Commodore, through its worldwide
operations, is one of the world’s leading
producers of computer-based consumer
and business products.
CDTV News
Commodore "Twin Market"
Strategy Establishes CDTV
in Business, Consumer
Markets
In the U.S.A.. Commodore is imple-
menting both business and consumer
market strategies for its CDTV Interac-
tive Multimedia player. The revolution-
ary technology of the CDTV player,
which integrates audio, video and graph-
ics into a single, powerful format, offers
businesses, as well as consumers, a wide
variety of interactive capabilities with
tremendous storage capacity.
According to a CDTV spokesman,
Commodore’s pursuit of both the busi-
ness and consumer markets is part of a
program to establish CDTV as the pre-
eminent format in the multimedia category.
"The massive storage capacity of the
CD-ROM format coupled with the
CDTV player’s unique combination of
superlative graphics, sound and ease-of-
use has created a powerful business tool
with great potential," said the spokesman.
"The same CDTV player that is currently
being sold to consumers will be used by
major companies for point-of-sale displays,
travel and hotel information services, and
numerous other applications. "The
CDTV player is a flexible product offer-
ing functionality which can be easily and
affordably expanded with the addition of
a hard-disk drive, modem and printer,"
the spokesman added. "The CDTV play-
er’s high-quality image display capabili-
ties, interactivity and cost-effectiveness
make it superior to virtually any other
business video display format."
Commodore is working with a grow-
ing number of third-party value-added re-
sellers (VARs) developing programs that
utilize CDTV technology into their
client’s sales and marketing, consumer
services and training efforts. Among
VARs using CDTV technology are:
GuestServe Systems (Movado, CA.) for
in-room hotel services; DCI Marketing
(Milwaukee, WI.) for information kiosks;
Digital Vision (Washington, D.C.) for
Scala interactive information systems;
New Visions (Los Angeles, CA.) for mall’
kiosks; and Imsatt Corporation (Falls:
Church, VA.) for skills training. DCI
Marketing demonstrated two prototype
kiosks at the Commodore booth during
Winter CES 1992.
The potential for CDTV in business
applications is enormous, according to a
CDTV spokesman. "For consumer com-
panies that need to demonstrate a product
or display image-based information, the
CDTV player provides a level of vivid-
ness, functionality and cost-effectiveness
that no other format can match. The play-
er can interface with input devices such as
a keyboard, keypad and touch-screen
monitor to provide users with consid-
erable versatility. And don’t forget the
Amiga authoring environment — it’s easy,
affordable and there are plenty of tools,"
he added.
The focus on business applications is
designed to supplement the ongoing con-
sumer marketing effort. Commodore is
the first company to sell a consumer inter-
active multimedia player on an interna-
tional scale. Currently, the CDTV player
is available in more than 20 markets in
North America, Europe and Asia, with ad-
ditional countries being added in 1992.
There are currently approximately 80 ap-
plications available for the CDTV player,
including educational/reference _ titles,
sports, video games, children’s education
and leisure activities.
"It has been our approach from the
beginning to develop the product and the
markets carefully," said the CDTV
spokesman. "More than just a new prod-
uct, the CDTV player is the first compo-
nent in an emerging product category. As
a result, we are being careful and selec-
tive in opening up distribution to ensure
that we can support the product properly
to build strong awareness and move
units."
Currently
the CDTV player is
available through 700 outlets in selected
department stores, consumer electronics,
software and computer stores in major
U.S. cities such as Los Angeles, San
Francisco, Chicago, Dallas, Houston and
Phoenix. Retailers include Video Con-
cepts, McDuff’s, Fry’s Electronics,
Broadway Southwest, Macy’s California,
Waldensoftware, Whole Earth Access,
Software Etc., among others. In addition,
CDTV players are available in selected
Amiga dealers in major markets nation-
wide.
In 1992, Commodore will continue
to roll-out the product throughout the
United States, Europe and Asia.
Commodore International 13
= === Market News
Leaders in Computer Sales
Leading U.S.A. Computer Sales of leading computer retail
Stores chains, in millions of dollars
In a recent survey published by
Dataquest Computerland was shown Computerland $2,600
to be the largest retail seller of com- JWP/Businessland 1,800
puters in the U.S.A. with estimated
sales at $2,600 million from 750 Intelligent Electronics 1,500
stores. The second largest was shown Inacom 950
to be JWP/Businessland with sales of
$1,800 million. In third place on
sales was Intelligent Electronics with Microage
$1,500 million. According to the sur- Compucon
vey the top 9 retail groups accounted
for sales of around $10,000 million . . Egghead *| 20
the industry has come a long way Sears Business Centers 400
since the first computer store opened
in Silicon Valley around 15 years ago.
fey)
eo
f=)
Tandy 900
~
8
Source: Dataquest
g
z
2
Cy
2
<
U.S. Toy Sales
Vi : Video-Game Toys *
Video Games and Toys — — :
in the U.S.A.
In a survey published in Business
Week from data compiled from the
Toy Manufacturers of America it was
estimated that the U.S.A. toy market
in 1991 was worth around $12,500
million out of which the video game
segment represented a massive
$3,100 million. The vast majority of
this latter category went to Nintendo.
It is interesting to note that this is
almost exactly the same size as the
retail market shown for computers.
88 789
A BILLIONS OF DOLLARS
* Wholesale
Data: Toy Manufacturers of America, Kidder Peabody & Co.
14 Commodore International
=== | Market News
The Changing Computer Markets of the World
In the following graphs we chart the way the world computer market has changed in recent years. In the first chart
we see how the personal (microcomputer) market has grown over the last 8 years to the single biggest category with
about 40% of the market. The main-
frame market has declined at an
almost exactly similar percentage of
the total market to where it now
accounts for about 25% of the mar- Mainframe Conte
ket. As can also be seen the mini- guue®
computer share of the market started
to take off in the late ’80s. The
workstation is now approaching 10%
of the market and the mini-computer
is down to around double this at just
over 20%.
Sources: Datamation; Annual reports; McKinsey
The changing nature of the market is also shown in the accompanying chart where it can be seen that while IBM
remains the single biggest company, its share has dropped from 37% to 21% with all this loss of share and more
being taken up by companies that did not feature in the biggest in 1975. Two companies, Apple and Compaq, that
are entirely micro based have since 1985 gone into the 15 largest in the world.
Data-processing revenues,
Ranked by computer revenue
by size of company
as
The 40 next
biggest
Nine next
biggest
* made one or more acquisitions in 1985-90 ** does not include ICL
Commodore International 15
Commodore
Announces Second
Fiscal Quarter Results
Commodore International Limited
(NYSE: CBU) reported earnings of $40.1
million, or $1.18 per share on sales of
$371.6 million for the second fiscal quarter
ended December 31, 1991. This compares
with earnings of $36.5 million, or $1.12
per share on sales of $384.1 million in the
year-ago quarter. Earnings per share of
$1.18 in the December quarter were based
on diluted average outstanding shares of 34
million versus 32.4 million in the prior
year.
For the six months ended December
31, 1991, net income increase to $45.4 mil-
lion, or $1.35 per share compared with
$43.5 million, or $1.34 per share in the pri-
or year. Sales for the six months were
$575.7 million compared with $584.4
million in the year-ago period.
Net sales declined 3% for the quarter,
due entirely to the adverse impact of for-
eign currency fluctuations. Unit sales of
the Amiga line increased 21% while C64
sales experienced nominal growth. Sales
of the Professional PC line and CDTV
combined to offset volume declines related
to the discontinued low-end MS-DOS
range.
Gross profit for the quarter declined
11%, due entirely to the adverse impact of
foreign exchange rates. Operating expenses
were reduced by 18% versus the prior year,
more than offsetting the decline in gross
profit. These factors resulted in net income
for the quarter of $40.1 million.
On December 30, 1991, the Company
repaid a 100 million Deutsche Mark
debenture issue, and maintained a year-end
cash position at a level approximately
equal to the prior year.
Mr. Irving Gould, Chairman and Chief
Executive Officer, stated: "We are pleased
with the sustained growth in the Amiga
and Professional PC lines, along with the
continued demand for the C64. The
growth in profitability for the quarter was
achieved despite the significant unfavor-
able effect of foreign exchange rates."
Commodore International Limited,
through its operating subsidiaries around
the world, manufactures and markets per-
sonal computers to customers in the
professional, government, education and
consumer market sectors. The Company
has four product lines: the Amiga multi-
media computers, the MS-DOS PC com-
patibles, the C64 computers and the
CDTV.
16 Commodore International
Financial News
Commodore International Limited and Subsidiaries
Condensed Consolidated Statement of Operations
Net Sales
Cost of Sales
Gross Profit
Operating Expenses
Operating Income
Interest Expense, Net
Other Expense
Income Before
Income Taxes
Provision for
Income Taxes
Net Income
Earnings Per Share:
Average Shares Outstanding
(Unaudited) ($000’s)
Three Months Ended
December 31,
1991 1990
$371,600 $384,100
251,000
~~ 120,600
73,100
47,500
4,500
135,500
89,100
4,400
800 3,200
42,200
2,100
38,800
2,300
$ 40,100
$1.18
$ 36,500
$1.12
34,034,000 32,582,000
248,600
177,700
46,400 58,200
$ 45,400
Six Months Ended
December 31,
1991 1990
$575,700 $584,400
398,000 385,700
"198,700
139,800
58,900
8,900
4,000
119,500
8,400
1,800
48,000
2,600
46,000
2,500
$ 43,500
$1.35 $1.34
33,605,000 32,477,000
Commodore International Limited and Subsidiaries
Condensed Consolidated Balance Sheets
Cash and Investments
Acounts Receivable, Net
Inventories
Other Current Assets
Total Current Assets
Fixed and Other Assets
Current Debt
Other Current Liabilities
Total Current Liabilities
Long-Term Debt and Other
Shareholders’ Equity
(Unaudited) (000’s)
December 31, 1991
$119,800
303,600
217,800
10,200
651,400
109,000
$760,400
360,200
266,600
326,800
86,700
346,900
$760,400
December 31, 1990
$123,300
291,700
224,500
12,800
652,300
95,900
$748,200
$31,000
244,700
275,700
165,000
307,500
$748,200
this document was generously contributed by
gail wellington
scanned by: commodore international historical society
www.commodore.international
