UK - Context Offers Retail Watch Update Services 09/20/95
LONDON, ENGLAND, 1995 SEP 20 (NB) -- After ten years of concentrating
its market research activities on the dealer side of the computer and
information technology (IT) sales channels, Context is moving its
services into the retail channel with a new Retail Watch service.

Jeremy Davies, a director with Context, told Newsbytes that the Retail
Watch service centers around two main elements, a weekly update
service on events in the European side of the retail market, and a
data service, which offers pricing details on the PC, printer, and
peripherals marketplace.

"The service covers the whole of Europe, and includes a typical
pricing service where we select a PC, printer, and other peripherals,
and offer typical selling price comparisons," he said. He added that
pricing on the new service varies depending on what data is required,
and what the customer plans to do with the data.

"Pricing starts from UKP5,000 a year. We're setting up a new division
within Context, as we predict that the retail side of the channel is
going to be of major importance in the years to come," he said.

According to Davies, Retail Watch was set up because the computer
industry was having a tough job keeping up with all the changes in,
what is fast becoming, a major force in the channels for PC and printer
sales in Europe. "For vendors, having to get involved in retailing
hasn't only meant coping with country differences...retail for many
of them is a whole new mindset," he explained.

According to Context, it has been forecast that the consumer and
business retail channel will become the major outlet for PCs in Europe
within the next four years. The company says that, fueling the
interest, are surveys like the one published recently by the UK
computer publication Computer Weekly in association with Kew
Associates, which found that consumer spending on PCs in the UK jumped
40 percent to over UKP1 billion last year compared with a 21 percent
rise in corporate spending over the same period.

Context claims that the survey noted that corporate spending was down
from a 30 percent increase the year before. The Context Retail Watch
report tracks pricing and promotional activity from the IT market
leaders in the consumer and business retail channel in six European
countries.

Each country report analyzes pricing for all the products sold in the
retail outlets tracked. At the same time, the results of a store
"walk-in" are analyzed with particular reference to any promotional
activity, such as bundling deals and finance offers. Special attention
is also paid to merchandising.

The main elements of the Retail Watch service include a weekly
analysis of news, products, pricing and promotional activity, a weekly
pricing monitor of the major models and configurations on sale,
details of regional promotions and a monthly in depth update on
instore merchandising.

(Steve Gold/1990919/Press Contact: Sukie Read, Communications Manager,
+44-171-937-3595, Internet e-mail sread@context-ecis.co.uk; Reader
Contact: Context, +44-171-937-3595, Internet e-mail jdavies@context-
ecis.co.uk)


IDC Sees Compaq Retaining PC Sales Lead In 1995 09/20/95
HOUSTON, TEXAS, U.S.A., 1995 SEP 20 (NB) -- Compaq Computer Corp.
(NYSE: CPQ) will apparently retain its leadership in personal
computer shipments for 1995, but not by much, according to a
report released by the International Data Corp. (IDC).

The international research and analysis company made its
predictions at its annual one-day PC Market Outlook conference.

IDC forecasts that Compaq will hang on to its worldwide sales
leadership by about two market share points over IBM and Apple
Computer Inc. Those two companies are in a dead heat for second
place.

Compaq is also expected to retain its domestic sales lead, but
will drop a point in market share in the US. IDC said Apple and
Packard Bell are in a tight race for second place in domestic sales,
with Packard Bell currently within a point of Apple and IBM in
fourth place.

Compaq has occupied the top sales spot each quarter since the
beginning of 1994, and also captured the top spot for that entire
year, with IBM ranked second, followed by Apple, NEC Corp., Packard
Bell Electronics Inc., and Hewlett-Packard.

IDC said the release of Windows 95, growth in the home and small
business markets, growth in rebounding or expanding regional
economies, demand for online access, new graphics and data
compression technology, and network management tools for business,
will continue to drive demand for PCs. Potential market inhibitors
include higher costs for some memory devices, some component
shortages and a potentially slowing national economy.

(Jim Mallory/19950919/Press contact: Compaq, 713-374-0484)


SPA Reports Flat Software Sales In Western Europe 09/20/95
WASHINGTON, D.C., U.S.A., 1995 SEP 20 (NB) -- Personal computer
applications software sales in Western Europe were up only slightly over a
year ago in the second quarter, the Software Publishers' Association has
reported. And sales of both DOS and Apple Macintosh applications were
down.

The figures released by the SPA are based on data from 38 US-based
applications software vendors. Anne Griffith, a research analyst at the
Washington-based software trade association, told Newsbytes the numbers
do not include European-produced software and probably represent roughly
85 percent of the total sales of US-produced software in Western Europe.

A few US-based producers do not participate in the study, and the SPA
does not attempt to extrapolate its results to account for them, she said.
However, Griffith said the growth rates given are probably quite close to
those for the entire market.

According to the SPA, Western European PC application sales by the
participating vendors amounted to $423 million in the second quarter of
1995, up one percent from the second quarter of 1994. Sales of Windows
applications were up six percent at $388 million. Sales of DOS applications
were down 35 percent to $20 million, which is no surprise given Windows'
continuing takeover of the DOS market. Perhaps more surprisingly, though,
sales of applications software for Apple's Macintosh fell 28 percent
year-over-year, to $13.5 million in the quarter.

"I haven't got a good reason" for the drop in Macintosh application sales,
Griffith said. "I'm just not certain exactly what's going on."

For the first half of the year, Windows applications sales by the surveyed
vendors were up nine percent to $852 million. DOS application sales fell
42 percent to $46.8 million, and Macintosh software sales were down 20
percent at $34.4 million, the SPA said. Over all, applications sales were
up three percent year-over-year in the first half.

According to the SPA, Windows packages now account for 91 percent of
the sales of US-made applications software in Western Europe.

Griffith said sales of OS/2 applications were up 39 percent in Western
Europe in the second quarter and 15 percent in the first half. However, she
cautioned that this large increase came on a far smaller total than for
Windows. Griffith would not say what total OS/2 applications sales were in
the quarter, saying the SPA wants to keep some of its data secret for its
members. Based on the totals that were released and the statement that
Windows application sales represented 91 percent of the total in the first
half, it appears clear that OS/2 application sales added up to less than $4
million in the first half. The SPA collected data for six operating systems
in all.

The SPA said price pressures are keeping sales revenues down in Western
Europe by reducing unit prices almost as fast as unit volumes rise. Unit
sales have been growing by 40 to 50 percent per quarter, the software
manufacturers' trade association said, but prices have been dropping
sharply over the past year.

(Grant Buckler/19950919/Press Contact: Anne Griffith, Software
Publishers' Association, 202-452-1600 ext 360; Sally Lawrence,
Software Publishers' Association, 202-452-1600 ext 320)


 ****Losses For Phone & Cable Firms Predicted 09/20/95
SAN FRANCISCO, CALIFORNIA, U.S.A., 1995 SEP 20 (NB) -- Competing
cable and phone companies vying in the new broadband multimedia
marketplace are heading into a "bloody stalemate," says Mercer
Management Consulting. In a study just published, Mercer projects
revenue potential for consumer communication, information, and
entertainment services to be in excess of $100 billion over the next
ten to fifteen years, but this will fall far short of covering costs.

P. William Bane, vice president of Mercer Management Consulting, told
Newsbytes, "Europe and the United States have taken different paths
toward a digitized communications network. Historically, the
television network has been separate from the telephone network,
and both were separate from any computer networks. With digitization
all these networks merge. In Europe, they are planning one monopolistic
regulated digitized network, in the United States we are trending
toward deregulation and multiple competing networks."

He said: "At the very least the competing cable and phone companies
will be installing separate digitized networks to the home. We will be
seeing at least two networks in every community, and this means for
the next few years we are going to have broadband capacity that will
exceed any concept of demand. When capacity grows faster than
demand you end up with companies loosing money."

"This is going to be bloody," said Bane, "because revenues will
not match costs for a long time, and its a stalemate because both the
cable and phone companies have no choice but to take this life-or-
death plunge into the digitized network."

Mercer predicts revenue growth for local consumer broadband
communications, entertainment, and electronic services will be
significant, but much less than the market's current expectations.
Mercer sees growth from $60 billion today, to $100 billion by 2010.

Entertainment holds the  greatest future revenue growth potential
($20 billion), but incremental demand for entertainment depends upon
the arrival of a broadband network capable of offering full
video-on-demand and time-shifted TV, says the study.

Electronic services offer the greatest near-in potential ($5 billion
to $10 billion). In the short term, revenue can be enhanced with
widespread access to ISDN (integrated services digital network) and
cable modems. These interim technologies can profitably support new
services in the years prior to deployment of full service networks,
says Mercer.

The report predicts that videophone has substantial revenue potential
($10 billion) if picture quality is improved, and equipment and
monthly pricing levels are reduced to reasonable levels. Quality of
service performance, broad service choice, and ease-of-use will be
critical to unlocking demand.

"Monopoly break-up combined with new technologies leads to
capacity and fixed costs growing faster than demand, not a pretty
picture from a financial point of view," said Bane. "The shortfall can
only be covered by fostering growth through a combination of vision,
innovation, and invention. This should include aggressive, software-
intensive new product development, alliances, and opening up
networks and content offerings to encourage market speculation."

Mercer Management Consulting Inc. is headquartered in New York,
and employs 1,000  people in 12 offices throughout the United States.
The study was conducted with interviews of 850 randomly chosen
United States consumers. In-depth interviews with industry
executives also took place.

(Richard Bowers/19950920/Press Contact:  Howard Bailen, Mercer
Management Consulting, 212-345-7506)


Hal Computer Ships 64-bit SPARC Workstations 09/20/95
SAN JOSE, CALIFORNIA, U.S.A., 1995 SEP 20 (NB) --HAL Computer
Systems, a Fujitsu company, has introduced a new line of 64-bit
Sun Microsystems' SPARC workstations. The company claims the
HALstation 300 Series workstations will run existing 32-bit SPARC
applications up to 3.3 times faster than any current system.

Other manufacturers are already delivering SPARC workstations
based on 64-bit hardware and 32-bit software, but HAL Computer
Systems claims to be the only company delivering a 64-bit operating
system.

Speaking to Newsbytes, Clark Hoyle, director of workstation
marketing, said, "We are announcing the world's first 62-bit SPARC
workstation. These workstations are fully compatible with Sun
Microsystems 32-bit SPARC operating system. Users can get all the
performance and functional advantages of next-generation 64-bit
systems without having to replace their enormous investments in
existing software, networks, and peripherals.

"HAL's new SPARC64/OS 2.4 operating system is based on, and
compatible with, Sun's latest Solaris 2.4 operating system. Our tests
indicate that the HALstation 300 Series workstation can run existing
32-bit Solaris applications up to three times as fast as any other
workstation. The system is able to run existing Solaris-based
applications software without modification, a capability we will
back up with a full money back guarantee," said Hoyle.

"A 64-bit chip is only half the story -- you need 64-bit system
software to harness its power," said Scott Metcalf, president of HAL
Computer Systems. "We're giving users the entire 64-bit system they
need to solve their next-generation of larger, more complex problems."

HAL also claims the new system architecture reduces long-term
maintenance expenses, including configuring, servicing and
upgrading. The workstation is built entirely with a new class of
component, the customer replaceable units. They claim that, with
nothing more than a single screwdriver, a user can strip, and rebuild
a HALstation in less than 25 minutes, touching no more than nine
screws in the process.

The mid-range HALstation 330 with a 100 megahertz (MHz) CPU (central
processing unit) is priced starting at $23,010 with a base configuration
of two gigabyte (GB) disk storage, 64 megabyte (MB) RAM, four SBUS slots,
keyboard, mouse, and a 17-inch color monitor.

The high-end HALstation 350 with a 118MHz CPU is priced starting at
$33,055 with a base configuration of 2GB disk storage, 64MB RAM, four
SBUS slots, keyboard, mouse, and a 20-inch color monitor.

The US master distributor for the Hal workstation is Ingram Micro.
In Europe, ICL will distribute the HALstation 300 Series. Parent
company Fujitsu Ltd. of Japan will distribute the workstations
throughout Japan and the rest of Asia.

(Richard Bowers/19950920/Press Contact:  Carol Manning, HAL
Computer Systems, 408-379-7000)


Sega Selling 32-bit Game Player For $99 09/20/95
REDWOOD CITY, CALIFORNIA, U.S.A., 1995 SEP 20 (NB) -- Sega of
America Inc. announced that the suggested retail price of the Genesis
32x, the arcade upgrade to the Genesis home entertainment system,
has been reduced to $99. Previously priced at $149, the upgrade
offers a middle ground between the 16-bit Genesis system and the
$399 32-bit CD-ROM Sega Saturn system.

Earl Mallit, marketing manager for Sega of America, told Newsbytes,
"We are offering the 32x as an affordable 32-bit arcade system. If
you can't afford $399 for a full 32-bit CD-ROM system, the cartridge
based 32x will, for $300 less, still give a 32-bit arcade look."

"We've been able to cost-reduce 32x, keeping it the most affordable
system for 32-bit gaming on the market," said Chrissie Huneke
Kremer, director of marketing.

Sega tested the $99 price-point for Genesis 32x over the past four
weeks. "Our early sales reports show that the $99 price point has
resulted in an increase in Genesis 32x sales in our top markets," added
Kremer. "And we expect to see a more significant increase as more of
our fall titles roll out."

One of the most popular fighting arcade hits ever, "Virtual Fighter"
will make its way onto the 32X on October 10 with other titles coming
soon. "'Kolibri,' a game where a high-flying hummingbird must save
the planet from an evil asteroid's deadly emissions; 'Star Trek:
Starfleet Academy,' the only Star Trek flight simulator on any Sega
platform; and 'Spiderman: Web of Fire,' will be coming out
exclusively on the Genesis 32x this fall," said Mallit.

Sega of America, a subsidiary of Tokyo-based Sega Enterprises Ltd., is
responsible for the development, marketing and distribution of Sega
products in the Americas. Sega Enterprises is a $4 billion company
with operations on five continents.

(Richard Bowers/19950920/Press Contact: Terry Tang, Sega of
America, 415-802-3218)

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