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Computer industry

Powerful Computer Chips to Revolutionize Consumer Electronics

Strategic Insights

— 1 min read

In a groundbreaking year for computer technology, consumer electronics are on the verge of a revolution with the integration of powerful computer chips in devices such as gaming consoles, washing machines, and interactive television sets. This shift is expected to make computing-based devices available to the masses at affordable prices. Apple's marketing manager, Bill Harrington, compares the current PC industry to the early 20th-century car industry, where the introduction of the General Motors mass-market approach democratized car ownership.

Key Takeaways:

  • Apple has two consumer electronics agreements, with Pippin Bandai Co. and a German cellular telephone manufacturer, to develop console games and incorporate the Apple Newton's personal digital assistant (PDA) interface, respectively.
  • Silicon Graphics (SGI) has agreements with Nintendo and Scientific Atlanta to incorporate their MIPS R4000 processor and R3000 processor, respectively, into gaming consoles and set-top boxes.
  • Intel, despite massive profits from PC chips, is exploring incorporation of its products in consumer devices at affordable prices.
  • Microsoft's At Work strategy aims to make today's dumb peripherals intelligent by developing interfaces for fax machines and photocopiers.
  • Daniel Petre, Microsoft's Advanced Technology Group director, estimates that Microsoft interfaces will not appear in the home for at least two to five years.
  • Powerful processors, intelligent interfaces, and sufficient memory will define the future of consumer electronics, enabling devices to perform a diversity of tasks like PCs.
  • Bob, a PC user interface for beginners, will influence consumer electronics with its intuitive metaphors.

Statistics:

  • 70% of people worldwide who could afford to do so, do not buy any computer (Apple's market research).
  • 120 million gaming systems sold worldwide by Nintendo (as of the agreement signing in September 1993).
  • Five to eight million Ultra 64 consoles expected to be sold in the first year (Nintendo project).
  • Four million set-top boxes inquired after by Australian companies as a potential market for SGI chipsets.
  • $US250 (approximately $A329) retail price for the Nintendo Ultra 64 console (expected release in 1995).

Sources:

  • Sydney Morning Herald
  • Apple's market research
  • Pippin Bandai Co. agreement with Apple
  • Silicon Graphics (SGI) agreement with Nintendo
  • Silicon Graphics (SGI) agreement with Scientific Atlanta
  • Intel Corporation news release
  • Microsoft's At Work strategy documentation
  • Daniel Petre, Director, Microsoft's Advanced Technology Group (interview)
  • Bob, PC user interface for beginners (Microsoft project)

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