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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 


¢( 


. 


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 





atl! 
«ji 


ll} 


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