"Programmables: Show Business Is In Cartridges"
"Consumer Electronics," May 1979: 23.


In a year when the industry is expecting limited growth in programmable video 
games, major firms in the field will strive to maintain momentum by focusing on 
new cartridges at Summer CES.

Retailers shopping CES game booths will see a few new computer language 
cartridges, but primary emphasis will be on new game and skill software, most 
of which are even more sophisticated than those currently available.

[Image: Magnavox VP Michaelson: "You will see a lot of people out of 
business."]

Atari will expand its line at CES with four additional cartridges, some of 
which were introduced earlier but never delivered. The company also has 
tentative plans for a series of self-help programs designed to aid in the 
preparation of income taxes, improved reading skills and related non-game 
subjects. Atari will deliver its 8K ROM memory BASIC language and chess game 
cartridges both retailing for $39.95. Marketing and sales VP Don Kingsborough 
forecasts that more sophisticated cartridges will attract a wider market. "We 
are attempting to expand the market for these games, by expanding our 
demographics," he says. "These games appeal to a more adult audience."

Bally will also be at CES with new cartridges for its programmable, recently 
upgraded to perform computer functions. The company will introduce two or three 
new cartridges, including a pinball program, says Jack Nieman, national sales 
manager.

Magnavox VP Gerald Michaelson is optimistic about sales for the coming year. "I 
think the consumer is really becoming aware of these games," he says. Sales 
will remain strong in spite of competition from new game/computers. "They are 
two separate markets," he says. "They will both continue to be viable 
categories. If the two products were the same price, then we would have 
problems."

Atari sees a strong year ahead, with the market dominated by fewer companies. 
"You will see a lot of people going out of the business," Kingsborough says. 
"But 1980 will be a big year-- about a 31 per cent sales increase over 1979." 
Kingsborough forecasts a healthy market through 1985, although there will be 
some price erosion.

Limited Life

Some manufacturers, however, assign a limited life span to programmables that 
lack computer add-ons. Jeff Rochlis, Mattel VP, labels these games outdated. 
However, programmables that can be upgraded to computers-- such as Mattel's 
Intellivision-- will experience strong sales, and serve as a primary hook into 
the personal computer market, he says.

In the face of a tightening market, some industry observers expect a shakeout. 
According to reports, Fairchild-- the pioneer in programmable video games-- may 
already have left the field. A Fairchild spokesman denies the report. "We're 
still in the video games business," he says. The spokesman was unable to say if 
the company will be at CES or if it will rehire any of its laid-off video games 
sales force. "If it's going to happen, that decision will be made in the 
future," he says.