3D --- Media Creation --- Shared Space

Published by 4th WAVE, Inc. Issue

#712 5/21/97


CONTENTS


711.1 QuickNews

Number Nine Unveils 3rd Generation Chip [May 15]

Number Nine Visual Technologies has announced the availability of working samples of its third generation, 128-bit graphics accelerator chip, "Ticket to Ride." It integrates 128-bit 3D, 2D and MPEG playback and sports the following features:

Memory: up to 48 MB of WRAM, SGRAM or EDO VRAM / DRAM up to 32-bit Z-buffer 8 KB on-chip texture cache Effects: Atmospheric effects for Specular Lighting, Interpolated Fogging and Alpha Blending APIs: Direct3D, OpenGL 2D: 128-bit 2D drawing engine 3D: Built-in 3D rendering engine and 3D Floating Point Setup Engine Video: Full-screen, full-motion MPEG playback Other: AGP support

"Ticket to Ride" is already sampling, with prices of $125 per chip set for quantities of 10K+.

http://www.nine.com

SGI Announces a Major Move for OpenGL into Games

Based on feedback from game developers at the CGDC, SGI has decided to release a software-only renderer, OpenGL-PC. This software will allow developers to create games written in OpenGL that will operate without hardware acceleration. If an ICD or MCD is present the software will default to hardware acceleration. A developer kit will be released in 2-3 weeks and it can be requested by going to the OpenGL web site The developer kit will include sample code and other documentation.

http://www.opengl.org/

3Dlabs - More Details on GLINT MX

3Dlabs has provided the WAVE Report with more details on the GLINT MX. This new chip will support up to 8 chips running in parallel. The target for highly parallel implementations is the Visual Simulation market and companies such as DataPath intend to take advantage of this scalability. The MX is designed to support output line interleaving. For PC implementations the best solution is with 2 MX chips outputting to a shared frame buffer.

3Dlabs will have a roll out of its new family of chips at SIGGRAPH in August.

http://www.3dlabs.com/

3Dlabs - Permedia 2 Announced [May 20]

In a matter of weeks 3Dlabs has announced 3 new chips: Gamma, GLINT MX and now Permedia 2. This latest chip is focused at the corporate market and entry level professional markets. The chip incorporates the Delta set-up processor which enables up to 1M polygons/sec. SGRAM memory is supported in 2,4,6, and 8 MB sizes. The chip also has full 2D support including MPEG-2 and a 230MHz RAMDAC. It will support both PCI and AGP buses. Impressive performance figures were also announced:

Winmarks (Business Graphics) 110

3D Winbench 130

ViewPerf (initial) 20+

A strength of this chip is its leverage into the extensive driver experience at 3Dlabs. This includes an OpenGL ICD, Heidi and Direct3D. Drivers for Memphis and Windows NT 5.0 are under development.

In what has become a fact of life - when parts are announced so are the OEMs - 3Dlabs has lined up an impressive list of buyers: AccelGraphics, Canopus, Diamond, DEC, ELSA, Hercules, IO Data, Melco, Newer Technologies, NeTPower, Number Nine, Radius, STB, Symmetric and TriStar.

Parts are being sampled now with volume in H2 1997. Pricing is $35 in 10K/month quantities.

SGI Acquires ParaGraph International

SGI has purchased ParaGraph International and folded it into a new division, Cosmo Software. Headed by Kai-Fu Lee, Cosmo Software will focus exclusively on software including the WebFORCE and Cosmo families of products. It will be managed in a manner similar to Alias|Wavefront. The initial staffing will be at 250 and the operating entity from ParaGraph in Russia will become an operating unit of SGI.

http://www.sgi.com/

http://www.paragraph.com/

HP Licenses DirectX, COM and DCOM

In a little noticed statement on the March 19th, an HP and Microsoft joint press release stated that HP would be involved with DirectX. Now it is clear that it will port DirectX to its HP-UX operating system. HP puts its relationship with Microsoft on the same footing as its microprocessor arrangement with Intel. DirectX is described as part of what is becoming a fabric of alignment between itself and Microsoft. HP sees considerable opportunity to leverage the strength of Microsoft's APIs into the technical computing market which has not used multimedia technology. An example cited is in Large Scale Collaborative Virtual Engineering where visual and audio results are shared across many locations. They also see where this technology and scalability of systems could also fit the entertainment markets. The migration of DirectX to HP-UX is work in process and schedules are being developed for its release.

http://www.hp.com

SensAble's GHOST 3D Touch SDK Available

At the Symposium on Interactive 3D Graphics in Providence, SensAble Technologies announced that the GHOST (General Haptics Open Software Toolkit) SDK is now generally available. GHOST SDK allows developers to created 3D Graphics applications integrated with 3D Touch applications. GHOST SDK is an object-oriented, C++ toolkit with built-in capabilities, external model libraries and an architecture that allows developers to add their own extensions. Primitive objects, polyhedral models and spatial effects are all supported in Version 1.0. Pricing is $495 for the Windows NT version and $995 for the Silicon Graphics IRIX version.

http://www.sensable.com

Quark To Buy mFactory [May 6]

Quark Inc. and mFactory Inc. have announced that they have signed an agreement for a Quark-affiliated company to purchase substantially all of the assets of mFactory, pending approval of mFactory shareholders. Quark's products include the popular desktop publishing application QuarkXPress as well as QuarkImmedia, an Internet and multimedia design and viewing program. mFactory's cornerstone product is mTropolis, an open-architecture, multimedia programming application geared to commercial multimedia title developers.

http://www.mfactory.com

http://www.quark.com

TEN Licenses Technology From MaK [May 19]

Total Entertainment Network (TEN) has licensed MaK Technology's military networking technology to co-develop an on-line space exploration and combat game. The space combat game, scheduled to debut this September, will be an online-only title and exclusive to TEN. It will feature a persistent environment and will initially offer simultaneous play for 100 players, with potential expansion to 1,000 players.

http://www.ten.com

http://www.mak.com

New PowerVR Ports

NEC and VideoLogic's PowerVR 3D graphics accelerator has won several new game ports recently, including:

http://www.nec.com

http://www.videologic.com

New Pricing for Diamond Fire GL Cards [April 29]

Diamond Multimedia has announced new pricing for their Fire GL 1000 and Fire GL 3000 accelerators:

Product Old Price New Price ------- --------- --------- Fire GL 1000, 4 MB SGRAM $399.95 $299.95 Fire GL 1000, 8 MB SGRAM $499.95 $399.95 Fire GL 3000, 8 MB VRAM/8 MB DRAM $1,995 $1,699 Fire GL 3000, 8 MB VRAM/16 MB DRAM $2,095 $1,799 Fire GL 3000, 8 MB VRAM/32 MB DRAM $2,295 $1,999

http://www.diamondmm.com

Diamond Releases Faster Drivers for Monster 3D [April 29]

Diamond has also announced new driver software for their Monster 3D gaming accelerator. The new driver software (version 1.07) reportedly is up to 20% faster. Using ZD-BOP's 3D WinBench 97, the Diamond Monster 3D achieved a score of 131 (tests run internally by Diamond on a 200 MHz Pentium PC). The new driver is available from Diamond's Web site.

Design Wins for S3 [May 9]

S3 has announced several new design wins for their 3D accelerator chip. New Pentium II-based PCs from AST, Dell, Gateway 2000 and IBM will all be powered by S3's ViRGE and Trio multimedia accelerators. The new Gateway 2000 PC uses the ViRGE/GX-based Nitro 3D graphics card from STB.

http://www.s3.com

IDS Ships V-Realm Builder 2.0 [May 12]

Integrated Data Systems has begun shipping V-Realm Builder 2.0, their second-generation VRML 2.0 authoring tool. Features include optimization tools (e.g. polygon reduction), drag & drop editing and scripting capabilities. It comes bundled with SGI's Cosmo Player and Intervista's WorldView. Introductory pricing is $495 and will go up to $595 after the introductory period ends.

http://www.ids-net.com

NEC To Sell Oxygen Cards in Japan [May 19]

Dynamic Pictures has announced that they have entered an OEM agreement with NEC, in which NEC will market and sell the Dynamic Pictures Oxygen 202 graphics accelerator card throughout Japan with the NEC Express5800 workstation line.

http://www.dynamicpictures.com

3D Urban Simulation From Coryphaeus [May 5]

Coryphaeus Software has unveiled MetroSim, which they claim is the "first comprehensive 3D urban simulation solution for interactively visualizing entire architectural concepts, structural designs, or land use proposals." MetroSim allows users to interactively navigate within the simulation as well as the ability to make changes. MetroSim runs on the SGI platform and is available now for $15,000 for a single-user license. An optional model, EastT (a terrain and feature generation system), is also available for $15,000.

http://www.coryphaeus.com

Ray Dream Studio 5 Announced [May 19]

Fractal Design Corporation has announced Ray Dream Studio 5 for Windows and Macintosh. New features include object creation tools such as the precise Mesh Form modeler; new animation tools with physically based behaviors including collision detection, gravity and more; and new rendering effects including visible lights, depth of field, and lens flares. Ray Dream Studio 5 is expected to be available in Q3 1997 for a SRP of $449.

http://www.fractal.com

SingleTrac To Develop for Nintendo 64 [April 19]

SingleTrac has announced that it has signed an agreement with Nintendo allowing them to develop for the Nintendo 64 console. Specific games have not been announced.

http://www.nintendo.com

http://www.singletrac.com

712.2 Calendar of Events

Macromedia User Conference and People's Choice Awards

What: Macromedia International User Conference and Exhibition

When: October 8-10, 1997

Where: San Francisco's Moscone Convention Center

Macromedia has issued a call for entries in its annual "Made With Macromedia People's Choice Awards" held in conjunction with the Macromedia International User Conference and Exhibition. If selected, the works will be showcased in the 1997 Made with Macromedia Gallery at the Macromedia International User Conference and featured on the Macromedia Web Site. Entries must be developed using one or more Macromedia products, and may not have been completed before September 1, 1996. The deadline for entries is June 10, 1997, and all entrants will be notified of their status by September 1, 1997.

http://ucon.macromedia.com

Windows NT Solutions Intranet Solutions '97

When: Aug 11-15, 1997

Where: Moscone Center in San Francisco

With more than 300 exhibitors and 25,000 attendees, this conference will be the venue for 1997's major Windows NT announcements and product launches. The show will feature conferences, tutorials and exhibitions covering critical issues for IS/networking pros including NT scalability, clustering, NT administration, security, intranet solutions, and more.

Information: Catherine Palmen, Hamilton Group for SOFTBANKFORUMS WINTIS '97

phone: 408-268-6112

email: cpalmen@aol.com

Virtual Humans 2, Los Angeles, 6/17-19

When: June 17-19, 1997

Where: Universal City Hilton in Los Angeles

Virtual Humans 2 focuses on virtual humans living, working and playing in virtual reality worlds, standing in for real individuals or carrying out jobs that real people cannot do. The event promises to an important one in this emerging 3D application. Key events at the conference include:

- Prof. David Farber's visionary Snow Crash panel initiative, which will compare the state of the art in online virtual communities with Neal Stephenson's benchmark novel.

- Virtual Tennis - the Thalmann's real-time version, followed by Digital Domain's celebrated virtual Andre Agassi, presented by Andre Bustanoby, one of the world's leading performance capture specialists.

- Industrial Light & Magic's latest and best character simulation work, demonstrated and explained by top animator/designer Ellen Poon (whose credits include Men in Black, The Mask, Disclosure, Jumanji, etc,).

- Televirtual will unveil their world-beating next generation technology, which enables a virtual TV host to move amongst and interact closely with the studio audience.

- Four of the leading vendors of industrial humanoids - Deneb, Genicom, Transom and Tecmath - will put their ergonomic proteges through their most demanding paces.

- Three interesting panels: Prof. Frank Biocca's panel - Communication Needs for Virtual Humans; Prof. Lewis Johnson's panel - Virtual Humans as Autonomous Agents; and Bernie Roehl's panel on Virtual Humans Standards.

- Other areas covered include: - virtual humans in games, teleconferencing, military simulation, avatar worlds, historical reconstructions, and crowd simulation for emergency planning.

- Linda Jacobson, SGI, will moderate the second day's events, and Ron Fischer, also SGI, will run a Motion Capture workshop on day 3.

The registration fee for the full conference is $580 and $480 for academics. Early registration fees for the full conference are $520 and $420 for academics if paid before May 31.

KillerApp Communications

5670 Wilshire Blvd #2500

Los Angeles, CA 90036.

Tel: (213)938-7600 Fax: (213)939-7211

e-mail: ftekle@rmcpr.com.

Virtual Humans 2 Web site:

http://www.vrnews.com/vh2.html

712.3 S3 - Unfolding Their 3D Strategy by John Latta

S3 has been the 3D market leader in terms of unit volume but we at the WAVE Report and others have been asking: where is the technology? During a recent visit to S3 we were given more details on the company's 3D strategy. Philip Bernosky, Senior Business Marketing Manager, Home Products, described S3 as a company whose products are driven by the applications which end-users employ - be it the home or office. They are continually asking the question - What are the compelling applications that we will make better with S3's technology? At the same time the company has a pragmatic approach to the chip business. What drives their business is the answer to another question: For a given design what is the maximum number of gates that can be included on a chip and still meet an introductory $30 price point to the OEMs? The interplay between the first and second question addresses the issue - how is the budget for gates allocated in functions on the chip in terms of 2D, video, and 3D functions? When the first Virge part was announced at COMDEX 1995 the gate budget was 250,000 and this meant limited 3D but it was the first time 3D could be included. In early 1998 the gate budget goes to 1M and the performance level of 3D will rise significantly. In fact, S3 has introduced its last chip that is 2D only - all future chips will have 3D.

To address the applications issue S3 has been proactive in promoting markets that it feels will drive demand for 3D. This happened first in the games area with its attempt to jump start 3D with a developer conference in 1996 and promotion of its S3d API. Next came its support of VRML, the investment in Intervista and the promotion of RIO. Corresponding with this investment was the announcement of a venture fund managed by S3. S3 has now disclosed the third leg of its strategy - office productivity using 3D. Indications are that this could range from the user interface to the traditional office applications including spreadsheets and presentation programs. S3 believes the next area for 3D growth will be on the desktop. With that will also come investments that S3 will use to support its commitment to this market.

On the chip side S3 will move from a company supporting just the mainstream into one that will segment its business into four levels: Zero (<$1,000 PCs), low, mainstream and high end. Today it considers the chips from companies such as 3Dfx and 3Dlabs as being niche products. In spite of their high relative performance they only sell in small quantities and this has not been S3's market thrust. In Q1 1998 this will change. S3 will enter these markets with high performance solutions and the chips will use, in part, Microsoft's Talisman technology.

S3 is seeing its business shift to where 3D is approaching the dominant market share. For example, in Q1 1997 it shipped 10M chips of which 4M had 3D and they expect the percentage 3D share to continue to increase.

http://www.s3.com/

712.4 Ziff-Davis Response to 3D WinBench 97 Review by David Lohse

In response to our article on 3D Winbench 97 (WAVE #710, 5/8/97), Ziff- Davis Benchmarking Operations (ZD-BOP) sent us several clarifications and comments.

Responding to the section discussing the 3D Triangle Tests, they respond:

"There is a test named 3D Triangle/User Defined that together with the User Triangles Test Settings page allows the user to vary any of the parameters you list above."

Since we indicated that the basis of the 3D WinMark score was unclear, they describe how it is calculated:

"The 3D WinMark is a scaled unweighted arithmetic mean of the results of the 10 tests in the 3D Winmark suite. If a test cannot be completed due to a lack of capabilities (e.g. the mipmaps tests) it gets a score of zero. The scale factor is chosen so that a P 200 using software emulation only gets a 3D WinMark result of 10. The 3D WinMark is intended as a single overall measure of the features and performance of an adapter."

Finally, they explain why in our initial test runs we did not receive a 3D WinMark score:

"Results for the 3D WinMark suite were not returned because you set the rendering buffer in the Scenes Test Settings page to 'Double buffered'. You must set it back to the default 'Front buffer' to get a result. The 'Double buffered' mode is only used to examine the quality of the rendering, not to get a performance measurement. See note [6] in the results output."

712.5 SGI Lays out its OpenGL Roadmap by John Latta

SGI continues to refine and articulate its direction for OpenGL. SGI is working closely with the OpenGL ARB to implement a three-tiered structure for OpenGL. As disclosed by SGI previously there is a layer on top of the low level API OpenGL called OpenGL++. This is now called the Scene Graph Toolkit which is a high level object-oriented API. Based on the experience gained from Inventor and Performer this tool kit is to raise OpenGL a level in abstraction so that it is easier to use and create applications. At the same time the developer will have access to OpenGL for performance sensitive implementations. Underlying the Scene Graph Toolkit will be a data structure that will be accessed by the API. It is anticipated that a file format will eventually be defined for the scene graph to enable portability but the details of this remain to be worked out in the ARB. SGI recognizes that a strength of Performer is the many file formats it supports and this should not be lost in the implementation of the Toolkit.

The third tier level is vertical market applications. Already announced was the Optimizer to support the CAD/CAM/CAE market. SGI now discloses a vertical segment based on Open Inventor as a user interface, Image Vision for imaging and the VRML toolkit.

SGI makes a strong statement about the role of open standards. In this roadmap SGI is articulating a direction but the implementation is left to the industry that is using OpenGL. This approach has been extended with Optimizer but Microsoft and HP have challenged this with its announcement of DirectModel.

http://www.sgi.com/

712.6 HP and Microsoft Announce DirectModel by John Latta

Hewlett-Packard and Engineering Animation Inc. (EAI) co-developed the technology originally code-named Jupiter that is used to significantly reduce the complexity of detailed MCAD models. This has now been released as DirectModel in conjunction with Microsoft.

DirectModel fits into a class of products, which extend the graphics pipeline in what HP calls Model Based Operations. The traditional 3D pipeline, which includes transforms, lighting and rasterization now, includes on the front end two additional processes: Simplification and Culling. The culling can be both view frustum culling to eliminate geometry outside the field of view and occlusion culling to eliminate geometry hidden by other surfaces. DirectModel operates in two modes: interactive and batch. In the interactive mode one is usually in a 3D editor or solid modeler where it is necessary to optimize the view in the context of the total model. Batch mode is for very complex models with millions of polygons where it is necessary to save a model graph for later viewing. DirectModel also supports hybrid use of the interactive batch modes and would thus be well suited to SMP implementations on Windows NT.

DirectModel will be implemented on top of OpenGL, Direct3D and Starbase and be optimized to work with other DirectX components. DirectModel technology is extensible to allow ISVs and end users to customize applications. Microsoft announced its plans to host its VRML2 browser on top of DirectModel to make large VRML model viewing practical in the near future.

The DirectModel announcement includes the who's who of the MCAD industry: AutoDesk, Cadcentre, CoCreate Software Inc., Computervision, EAI, EDS- Unigraphics, Fraunhofer Institute for Computer Graphics (IGD), Matra Datavision, Parametric Technology Corp., Prosolvia Systems AB, Resolution Technologies, SensAble Technologies, Inc., Sense8 Corporation, SolidWorks Corp., Spatial Technology Inc., Structural Dynamics Research Corporation (SDRC) and Template Graphics Software Inc.

Template Graphics Software, Inc. will port DirectModel to non-HP platforms: Digital, IBM, Silicon Graphics and Sun.

HP assesses its strength in the market, vis-à-vis OpenGL Optimizer, as follows. First, it provides greater functional flexibility to the ISVs. In particular OpenGL Optimizer lays out a high level surface representation while DirectModel does not. Given the many ways that MCAD companies describe surfaces this flexibility is seen as an important advantage for DirectModel. Second, HP feels that the quality and completeness of the software, documentation and tool kit is superior with DirectModel. Another advantage of the CD snapshot, the SDK, is the viewer. This tool allows the end user to see the results of DirectModel and has been widely endorsed by the ISVs. Third, HP sees a significant shift by the MCAD developers to use Windows NT as their primary development platform. With this shift, and the full support of Microsoft on DirectModel, the ISVs now have all the more reason to use NT and gain the advantage of its market presence and growth.

HP has released the DirectModel toolkit for use by key ISVs. DirectModel will be available from HP for use on HP platforms and from Microsoft for use on Windows platforms. DirectModel is expected to be available in beta version this summer, with the first customer shipments of applications which use the technology later this year.

http://www.hp.com/go/technical

e-mail: DirectModel@cv.hp.com

712.7 Extending the Reach of 3D - Points to Ponder by John Latta

The movement of 3D into the business environment is a high priority. If demand can be stimulated the 3D industry will move from its current dependency on the consumer sector and it will be able sell products at much greater than mass market prices and at the same time avoid the seasonal market cycles. However, past attempts to drive 3D into the business market have failed. In this issue we reported on S3's move into supporting desktop 3D and now HP and Microsoft with DirectModel.

The DirectModel effort is part of a larger movement to extend the result of the design process in a product-oriented company throughout the enterprise. However, to just provide massive million+ polygon models, even if reduced by DirectModel, is of little value to the desktop with a lowly Pentium. Thus, for 3D models to be enterprise pervasive they must follow the same rules as applications on the desktop: easy to use, integrated with other applications and not require changing the organizational computing infrastructure. DirectModel is certainly a move in this direction.

OpenGL Optimizer discussed in this issue also attacks the same problem. Here we have the typical clash of the market. SGI emphasizes the open nature of its proposal whose final result will be the action of industry group it has helped to form while HP and Microsoft have market presence in both the MCAD world and on the desktop OS (Windows NT), respectively. PTC, Clarus and SDRC overlap on both groups. HP and Microsoft landed: AutoDesk, Cadcentre, CoCreate Software Inc., Computervision, EAI, EDS-Unigraphics, Fraunhofer Institute for Computer Graphics (IGD), Matra Datavision, Resolution Technologies, SensAble Technologies, Inc., SENSE8 Corporation, SolidWorks Corp., Spatial Technology Inc., and Template Graphics Software Inc. Unique to SGI is Dassault Systems and Division.

There are some potentially significant implications in the HP announcement. Microsoft indicates that it is embracing DirectModel, with its extensibility, in the content of DirectX. In the past Microsoft has not advocated open extensibility to its APIs because of the support and driver issues. There is also an element of lost control by making software openly extensible. Potentially even more important is the linkage of Direct3D with DirectModel. Microsoft has not been pushing Direct3D into the professional space and with DirectModel it implies that it is doing so now.

We see the capabilities of culling and the simplification of complex models as being a critical move to placing 3D onto the desktop. Significant 3D processing power will still be required and this is not on desktops today, even at the high end of the PC space. Going forward we see the 3D pipeline being extended in hardware to include the extensions now being brought to market in software - another feature that will keep 3Dlabs and other companies busy for years to come.

The announcement by HP and Microsoft also shows the reach that DirectX is having. Originally SGI had licensed QuickTime but this was a flop. Now HP, not seen as a multimedia heavyweight, has licensed DirectX as a way to rapidly extend its workstation solutions into multimedia. It will take time to see how effective the port will be and if it is leveraged by applications in the workstation space.

All of this indicates how quickly the workstation and Wintel market are converging. Out of the convergence will be losers and the stage is being set for marketplace battle.

712.8 Conference Report - Microsoft Tech-Ed by David Lohse

Microsoft's Tech-Ed Conference, held in Orlando from May 5-9, was targeted primarily at (Microsoft-based) enterprise-level engineers and managers, offering a week's worth of courses on related topics. In addition, Microsoft also revealed some of their current initiatives and delved further into upcoming technologies.

Keynote - Bill Gates

Of course the primary keynote for the conference was delivered by Bill Gates, and it was received by a packed audience. In it Mr. Gates outlined in broad terms the current directions being taken by Microsoft, without going into any specific details. While Microsoft's theme of 1996 was the Internet, in 1997 their theme is "manageability and scalability," important topics that were stressed by Microsoft throughout the conference. These concepts take several forms in the current and emerging technologies, including the Zero Admin Windows initiative (which will allow network administrators and technical support to configure and maintain PCs with little or no effort) and the growing support for COM ("object technology has finally arrived").

If one theme is to be pulled from Mr. Gate's keynote and the conference in general it is Microsoft's push for "scalability." Now that Windows has effectively conquered the consumer desktop, Microsoft is attempting to promote the Windows platform as scalable across all levels. This was demonstrated in a diagram that was shown repeatedly throughout the conference which displayed Windows operating at the lowest levels (Windows CE on handheld devices) up to the enterprise (Windows NT in clustered servers). At the same time he was promoting the scalability of Windows, Mr. Gates dismissed the viability of the so-called "Network PC", which he claimed would make developers re-write all of their old code, while Windows on the other hand will allow an evolutionary movement using past investments.

Also outlined in the speech were several forthcoming technologies that were discussed in more detail during conference sessions, such as Dynamic HTML and Windows NT 5.0.

Windows NT 5.0

The new features and functionality in Windows NT 5.0 were the topic of several important sessions during the conference. Again the themes of manageability and scalability were emphasized and are the focus of several new features. NT 5.0 will use Active Directory, which will combine DNS, X.500 and LDAP functionality to create a simpler and easier-to-use directory of network resources. In conjunction with the Microsoft Management Console, the management of an NT network will reportedly be much less complex.

Regarding scalability, the main feature supported in NT 5.0 will be clustering, which will allow multiple servers to work in conjunction on a network. Currently present in Microsoft's Wolfpack software now in testing, up to 2 nodes (servers) are supported under NT 4.0, 4 nodes will be supported under NT 5.0, and up to 16 nodes will be supported under NT 5.0 by 1998.

Other features found in NT 5.0 include OnNow, which lets desktop computers enter a very low power "sleep"-like mode similar to laptop computers; the new ACPI systems interface, which will use standard OS driver to control system board configuration and power management; the Common Internet File Service (CIFS) which will all networks to transparently store files and folders at different locations; the Zero Admin Windows environment which will allow users to access the same operating environment from different workstations.

Dynamic HTML

Dynamic HTML is Microsoft's attempt to develop the "next-generation" of HTML. DHTML offers many new capabilities over the current HTML 3.0 standard, bringing dynamic content without the need for external interfaces such as CGI or Java. Many new effects can easily be added to Web pages, such as the ability to place images anywhere on the page (without tables) and hot tracking (effects depending on the mouse position).

Dynamic Content allows the actual content of a page to be changed on the fly without using external resources. As an example, a simple diagram of an office allowed the user to interactively move furniture about, a page which was claimed to only consume several kilobytes. Data Binding, another feature of DHTML, brings data locally to the PC for sorting or other manipulation - an example was a spreadsheet that could be sorted on the client without having to refer back to the server.

Multimedia features offered by DHTML include structured (vector) graphics, the ability to overlay graphics with a Z-buffer-like effect, alpha channels, various filters (waves, fades, etc.) and sprite control.

DHTML is based on an Object Model rather the linear style used by conventional HTML. Using this model, both style and content are made dynamic. It was stressed by Microsoft, however, that the Object Model is not a new set of tags - it is rather a new way to code HTML.

Microsoft is pushing Dynamic HTML as a standard, and both DHTML and the Object Model have been submitted to the W3C for consideration.

712.9 Las Vegas LBE - Just More Crashes? by John Latta and Malisa Burkeen

Conventional demographic logic tells us that the more visitors to a location the higher the probability that a given entertainment site will be successful. In a retail context the Caesar's Forum in Las Vegas certainly follows that axiom where 18M out of 28M visitors come each year to this expensive mall that creates one of the highest gross incomes of any in the U.S. - $1,200/square foot. Yet, as Las Vegas struggles with its target audience, (is it the family or the older couple or the single gambler or ?) entertainment as a draw is struggling. In 1996 VWE shut down its location in Las Vegas and the theme park at the MGM hotel is rumored to be doing poorly. Thus, we see indications that Las Vegas is not a Mecca for non- gambling entertainment but just another brutal location where the same old market forces are at play. These include: the entertainment social context, the play attraction and value and the siting. We discuss the complexities of the out-of-home entertainment market later in the Points to Ponder which follows.

This month another Gameworks site opened with much fanfare. Being much larger than Seattle it is another opportunity to test the premise - if Dreamworks designs it will they come? Our review of the Seattle site was doubting and at Las Vegas we are even more doubtful. Located in the Showcase Mall next to the MGM Hotel this is an another example of what lavish spending can fabricate. The mall is actually a facade for Gameworks, a Coke merchandise store and a restaurant. Gameworks is actually underground where the two floors of play are below ground level.

As one walks in at ground level you see the top of Clear Climb, which is claimed to be the tallest retail climbing rock (actually 2 peaks) at 75'. For $10 you can go the full length and $6.00 the height is 40'. We visited the location twice and on both occasions the rock climbing drew the greatest crowds, however, it was not clear that this translated into more business. These watchers, at the ground level, did not end up taking the escalators down into Gameworks.

The components in both Seattle and Las Vegas are very similar: foods, fries, drinks, bar, Starbucks and play areas. The difference being that Las Vegas is much larger. The play prices track the high Seattle prices. We did notice that Virtua Fighter 3 (VF3) had dropped from $1.50 in Seattle to $1.00 in Las Vegas. We believe this is a measure of how difficult it is to get players to go for fighting games. VF3 is the first Sega product to use the new Lockheed-Martin Model 3 3D technology. At least in the US, VF3 is seen as a dud because fighting games have lost their appeal.

We sampled Gameworks at two times: Sunday AM and Monday PM. On Sunday morning it was virtually empty while early Monday evening we counted about 50 - a number which seems quite low if this is to be high traffic location. On both days there was a hawker on the sidewalk trying to get more to come into Gameworks (Monday there were two). As in Seattle the staffing level was high. On Sunday the staff overwhelmed the number of players and even on Monday night there appeared to be more staff than players. Many of the staff assisted players in understanding the games.

Our sample found the demographics were skewed to males and father-son combinations. Although there were women present they were not active game players while in Seattle we saw more female participation.

The following was empty on Monday: food, drinks and playing pool.

Vertical Reality - the vertical lift ride was masked over and would not be complete until the end of June. We understand that this ride has technical problems and during our visit to Seattle it was also not operational.

We went to the Monte Carlo hotel to observe one of the few Greystone Mag Ball installations. It costs $3.00 per play and located in an arcade area of the hotel. However, on both visits we could find no players.

712.10 Conference Report - ICSC - More on Out-of-Home Entertainment by Malisa Burkeen and John Latta

In about the 1992 - 1995 time frame, Location Based Entertainment(LBE) was thought to be the draw for those suffering from cabin fever or a good place to take a date. Yet, the luster of LBE has worn off and today it is being replaced as the hot entertainment product by entertainment retail, Urban Entertainment Centers, multiplexed theaters, themed restaurants and a host of other concepts to attract the public. A key element is that retail with its high income per square foot can compensate for the low relative earning potential of exclusive out-of-home entertainment venues. To pick up on the latest trends we went to the annual International Council on Shopping Centers (ICSC) meeting to sample the trade show and conference sessions.

Virgin Cinemas

Ian Duffell of Virgin Entertainment was blunt in stating that the Megaplex theater is essential for long term success of retail entertainment. In order to capitalize on this need Virgin is creating the Virgin Cinemas with the usual Virgin twist. The theaters will have from 14 to 24 screens and will also have a two tier system similar to first class and coach seating on an aircraft. The first class seats will be larger and have more leg room but will cost 30% to 40% more (around $3 to $4 more). First class ticket holders will have access to a bar to enjoy drinks before and during the movie. They will also be able to reserve seating for the movie when they buy the ticket. In addition there will be "cry rooms" which are effectively theater boxes for families with children, and there will also be boxes reserved as smoking rooms for cigar smokers. Their theaters will have Virgin Megastores attached as well so that the mere coach ticket holders will have some way to pass the time.

Ian also stated that attention to detail is extremely important in a retail environment. For example, he cited their experience that a higher ceiling in Virgin Superstores relates to higher sales. This level of detail can also be counter to the trend to attack retail with technology - as he called "Over Tech." What is more important is a conformable experience with the corresponding attention to detail and they see this is as key component of their Virgin Cinema concept.

Irvine Spectrum

The Spectrum in Irvine, CA is the first location of a Sega entertainment site called Sega City. It is expected that this will be converted to a Gameworks site. The Spectrum is an entertainment center which features a Moroccan architecture to frame an open air amusement, shopping and dining attraction. It contains one of the largest movie operations with 6,400 seats and the second largest IMAX 3D theater. There is also a 300-seat 12- restaurant food court. Rick Evans of Irvine Retail Properties described how 5M people came last year and while they expected first year revenues of $35M the actual sales were $55M. When Phase 2 completes in 1998 they expect the revenues to be $150M (the name will also change to Irvine Spectrum Center). His view is that a theater is also required to be the entertainment anchor and 45% of the sales at the Spectrum are from non- theater goers. It has been their experience at the Spectrum that when individuals go to the movie they expect a four-hour experience - a movie and more. The intent of the Spectrum is to offer many options to satisfy the quest for the "more." They use the term "entertainment hub" to describe the range of retail and amusement offerings and the draw it has.

Gameworks

Ira Mitchell of IJM Realty provided an overview of Gameworks after a few months operation in Seattle. Demographically Seattle is 50/50 male/female with an average age of 26. The facility transition from families in the afternoon to older individuals as the time of day increases. Located next to Gameworks in Seattle is a Megaplex which they feel increases the Gameworks volume, however, even without a theater nearby the Gameworks concept is self-sustaining. (One of the panelists stated that he felt it arrogant of Gameworks to feel that they can make it without a movie anchor.) The number of visitors in Seattle is running from 20,000 to 30,000 per week. Their earning expectations are $300/sq. ft. to $400/sq. ft. In a key comment it was stated that to sustain these income rates they need to change content on a regular basis - every 6 weeks or so.

712.11 The Hardships of Out-of-Home Entertainment - Points to Ponder by John Latta

In the last several years we have seen a dramatic shift in out-of-home interactive entertainment. LBE was to be the beachhead where this new entertainment technology arrived using either VR or 3D experiences for the masses, circa 1993. These early concepts have largely flopped or have topped out in sales. Now in 1997 we have coming on strong Gameworks and we expect to see Disney and Sony initiatives by the end of 1998. Is there something these companies know that the earlier ones did not?

If Gameworks is any indication we suspect not. The discussion at the ICSC conference supports the role of multiple entertainment venues to sustain each one independently. Here the debate was about multiplex theaters, however, we believe that the issue is much broader than having 12 or more movie screens as an anchor. At the core of the entertainment experience is its social context and key questions include: who were you with, what was the mutual experience, and what are the lasting impressions of that experience (including the personal residue vs. the amount spent). At the same time entertainment has many different meanings. To some it can be shopping, others eating and in many cases it can be passive such as watching a football game in a bar. In Las Vegas gaming is entertainment for many and the emphasis on arcades and theme parks is a complement or even uninteresting to what gamers go for. Yet, just because Las Vegas brings in 28M+ visitors a year does not mean that any LBE will be successful. Our most recent experience in assessing the entertainment venues, as outlined here, leads us back to the same fundamentals which are at the core of out- of-home the entertainment experience: social experience, venue, uniqueness and well focused demographics. We are not seeing these components in the LBE sites and Las Vegas is no exception. Be it Las Vegas or not, LBE as a stand-alone venue is headed for hard times. A key reason is that it cannot address all the fundamentals above. One then asks the question will the close proximity of MGM, the Coke store and restaurant be sufficient to carry Gameworks. We have our doubts.

The comment by Ira Mitchell that there needs to be content refreshment on a regular basis, i.e., 6 weeks, is at the heart of uniqueness criteria mentioned above. One factor long touted by LBE advocates is that the imaginary digital backlot used to create content allows for greater flexibility and more rapid changeovers. Yet, this has not happened. Coin-op machines are fixed with the content they come with (other than upgrade kits), sequels take too long to create and many of the LBE sites are using the same games/content they started with. This poses an interesting question: Are players going through content faster than it can be generated? In many respects this is true. Only when the content is on an extensible platform such as Quake with multiple levels is it possible for developers to attempt keep up with the players. There is a close parallel with game content and its role in out-of-home play and movie releases. Microsoft, in its coin-op Windows standard initiative, has made a point about a theatrical release model applying to coin-op games before they come to the home. Having a high play location as the first release opportunity changes the market dynamics. Under these conditions a Gameworks has the potential of being the interactive entertainment theater of the future. Yet, today it is no more than a container of that which already exists in arcades all over the world. Hardly unique.

As we look forward to sustainable out-of-home entertainment concepts they must go well beyond what we have seen so far. It seems that the more things change the less different they are from the experiences and failures of the past.


Copyright 1997 4th WAVE Inc.

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