Microsoft Cuts Price of Softimage 3-D Animation Software

Microsoft Corp. has drastically reduced the price of its Softimage 3-D animation software, making it more competitive in the market. The new list price of $7,995 for the basic version and $13,995 for the "extreme" version is a significant decrease from the previous prices of $24,000 to $40,000. This move has been attributed to the company's desire to capitalize on its Softimage name and to make the software more appealing to customers. Analysts believe that rumors of the impending price cut may have contributed to the decline in the share price of Microsoft rival Alias Research Inc.

Key Takeaways:

• Microsoft cut the price of Softimage 3-D animation software to $7,995 for the basic version and $13,995 for the "extreme" version, a significant decrease from the previous prices of $24,000 to $40,000.
• The new version of the software, renamed from Creative Environment AE, includes features that make it more powerful and flexible.
• Microsoft will release a version of Softimage 3-D for the SegaSaturn game platform, which will allow developers to create games with "synthetic worlds."
• Alias Research Inc.'s share price declined 12 cents to $18 on the Nasdaq Stock Market on trading volume of 328,600 shares.
• Alias CEO Ian Giffen stated that his company has no plans to cut the price of its PowerAnimator software, which has a list price of $45,000.

Statistics:

• Previous price range: $24,000 to $40,000
• New price for basic version: $7,995
• New price for "extreme" version: $13,995
• Alias shares lost 12 cents on trading volume of 328,600 shares
• SegaSaturn is a 32-bit game system
• PowerAnimator software list price: $45,000

Sources:

• "Microsoft Cuts Price of Softimage 3-D Animation Software," The Globe and Mail, January [date not specified]
• "Microsoft, Sega Team on New Game System," The Wall Street Journal, January 6, 1995
• Alias Research Inc. financial statements, [date not specified]
• Microsoft Corp. press release, [date not specified]