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***General Instrument Maybe In Takeover Talks (November 16)
Reuters reports that General Instrument is the subject of rumors that it may be in talks to sell itself or form a joint venture with a larger communications equipment maker.
GI is rumored to be in talks with several potential suitors, including Philips Electronics NV, Lucent Technologies, possibly Cisco Systems Inc. and Motorola.
Shares of General Instrument gained $3.44 to $34 on Tuesday, with 2.6 million shares changing hands-nearly three times its average daily trading volume. The gains reversed losses seen on Monday.
Cable television giant Tele-Communications Inc. owns 12.4 percent of General Instrument and Sony Corp., which forged an alliance with General Instrument earlier this month, owns about 4.3 percent.
***VRML Consortium Expands Charter To Become Web3d Consortium
The VRML Consortium announced that its membership has ratified an expanded charter to include multiple technologies for 3D on the Internet. Previously, the Consortium would only consider VRML-based proposals; but now the invitation is open for other technologies to be considered for standardization. The goal of the new charter is to create a suite of interoperating standards targeted at specific market segments. To reflect this expanded charter, the consortium is now called the Web3D Consortium.
The Web3D Consortium has also initiated an internal, fast-paced process to define an interoperable set of lightweight and extensible component 3D standards to flexibly address the needs of a wide range of Internet and broadcast applications. This process has the backing and support of key industry members and is expected to promote interoperability with standards such as DHTML, XML, DOM and MPEG-4 to encourage the ubiquitous deployment of reliable 3D content.
Under its charter, the Web3D Consortium will be able to leverage its reputation and expertise in the development for open standards to a wider array of 3D technologies.
The Consortium Board of Directors will evaluate proposals generated both inside and outside the Consortium for effectiveness and suitability for bringing 3D content to the Internet. These proposals will enter the same working group process that generated the VRML 97 standard in less than 12 months. Proposals that successfully pass through the process will be ratified as official standards by a Consortium membership vote, with the possibility of further formalization by the International Standards Organization (ISO), following the process pioneered by the VRML 97 International Standard.
The Web 3D Consortium invites new members and participation from companies who wish to tender standard proposals for immediate attention, and to be involved in the definition of standards to drive the future direction of 3D graphics technology. Interested parties should contact Deepak Kamlani at dkamlani@inventures.com.
***NeoMagic Files Patent Infringement Lawsuit Against Trident Microsystems
NeoMagic Corporation announced that it has filed suit in the United States District Court for the District of Delaware against Trident Microsystems, Inc. The suit alleges that Trident Microsystems' embedded DRAM graphics accelerators infringe certain patents held by NeoMagic Corporation.
***RIAA Proposes Music Security Initiative
RIAA announced the Secure Digital Music Initiative (SDMI), a framework to work with the technology community to create a voluntary digital music security specification by next fall. The open specification will protect copyrighted music in all existing and emerging digital formats and through all delivery channels.
This is to be driven by the SDMI Forum, an open body of companies involved in digital music. The initiative will achieve three objectives.
It will answer consumer demand for convenient access to quality recordings, ensure copyright protection for artists' work, and
enable technology and music companies to build successful businesses.In planning for nearly a year, the initiative was announced by music companies, including:
Strauss Zelnick, president and CEO of BMG Entertainment;
Ken Berry, president of EMI Recorded Music;
Thomas D. Mottola, chairman and CEO of Sony Music Entertainment;
Doug Morris, chairman and CEO of Universal Music Group;
Bob Daly, chairman and
co-CEO, Warner Bros. and Warner Music Group; Terry Semel, chairman and co-CEO of Warner Bros. and Warner Music Group;
Hilary Rosen, president and CEO of the Recording Industry
Association of America; and
Jason Berman, chairman-elect and chief executive of the International Federation of the Phonographic Industry. Berman also represented the Recording Industry Association of Japan.In addition to major and independent record labels, many technology companies AOL, AT&T, IBM, Lucent, Matsushita, Microsoft, RealNetworks, Sony Corporation and Toshiba support the initiative. It is expected that many other large and small companies will champion the effort.
The SDMI will be an open forum for all commercial companies significantly involved in technologies relating to digital music. Participating companies will be encouraged to bring their approaches to digital music security and to work together to establish and document an open architecture and specification for protecting music. Many companies and established groups are currently developing approaches and solutions to secure digital music. The forum will provide a means to build upon and harmonize these efforts. Products and services that conform to the open standard will have compatible and interoperable security features, and will be certified as SDMI compliant.
The recording industry's role in the forum will be to provide guidance as to the features attractive to artists, record companies and consumers. The effort will include representatives of independent record labels to ensure that the initiative is inclusive, and that all points of view are represented. Other music industry groups will also be invited so that the forum will understand the important work being undertaken around the world by music publisher and songwriter rights organizations.
The SDMI Forum is expected to begin operations in early 1999. The objective is to have a specification completed in time to allow conforming products to be available for the 1999 holiday season.
We are skeptical that the objectives of having an industry wide digital rights management solution, in place, for retail sales within one year is possible. Just look at the process of achieving similar results with DVD.
This announcement made no comments on the bruising legal battles, which has been, in part, fueled by Diamond and its Rio MP-3 player. Certainly Diamond has gotten much in the way of free publicity and early indications are that it is selling very well. Maybe that is better than selling 3Dfx graphics cards?
The RIAA must show that it can pull the industry together which goes well beyond a press event. This execution part has proven very difficult in the past and given the bitter struggles in the past it remains to be seen if RIAA can pull this off.
***Japan Ships More Smart Handheld Devices
Reuters reports that despite recent economic instabilities, the Japan smart handheld device market will ship 1.61 million units in 1998, up 41.3 percent from the previous year, research firm International Data Corp. said Wednesday. The company said in a report that this market will experience moderate growth through 2002, with shipments reaching 3.65 million, boosted by growing interest in personal computers and personal companions as well as a strong demand for smart phones.
Handheld companions remain the largest of all segments, with the classic personal digital assistant leading the way. Sharp Electronic's Zaurus line has helped legitimize the market in Japan. The classic personal digital assistant segment reached shipments of 454,000 units in 1998 and that number is expected to nearly double by 2002. The smart phone category is the most rapidly growing segment of the Japan handheld market, with smart phones expected to reach 373,000 units in 1998, up 115 percent over the previous year. IDC Japan said it expects the average street price for a smart phone is 37,000 yen, or $258, and is considered affordable for a broad set of users.
***NetTV ExtremeDVD Provides Digital Home Entertainment System (December 10)
NetTV announced a low-cost way to turn a TV into a multifunctional digital entertainment system. NetTV's ExtremeDVD has added Tri-linear filtering as a means of reducing flicker and dot-crawl when used with a standard television. This provides enhanced picture quality on existing TVs.
ExtremeDVD is based on a Pentium II digital entertainment system combining DVD, Internet, CD-ROM, 3-D video games, Dolby Digital audio and Windows applications. This is not another limited function Internet device or set-top box but a digital home entertainment system.
ExtremeDVD systems range from under $1,000 to $3,000. System capabilities include DVD, DVD-ROM, Intel Pentium II processor, 3D sound, 3D graphics, NetTV's UltraDVD decoder, Dolby Digital 6-channel sound including LFE (low frequency effects), Dolby Prologic, wireless keyboard, hand-held remote control, expansion capability, hi-speed hard-drives, Windows98 and a choice of 56K modem or high-speed network adapter. In addition to running full-blown Internet applications, thousands of other standard software applications can also be run on ExtremeDVD.
NetTV has a low-cost solution if one upgrades standard television to Digital TV/HDTV. NetTV's 29-inch, 34-inch and 38-inch XGA and SVGA Digital Televisions display a hi-resolution picture capable of up to five times the clarity and image stability of a standard television further enhancing the functions of ExtremeDVD. In addition to direct input from ExtremeDVD, NetTV's PC+TV Monitors have inputs for standard desktops and laptops, VCRs, cable systems, standard video, and digital video equipment.
ExtremeDVD is backed by a one-year warranty on parts & labor and lifetime toll-free customer service support. An optional on-site service program is available.NetTV manufactures digital television equipment and other digital electronics products for home, business and education markets.
***Sharp Selects Cadence for SOC and Media Processor Design Work (December 8)
Cadence Design Systems has been chosen by Sharp to adapt its Data Driven Media Processor (DDMP) for system-on-a-chip (SOC) applications. Cadence will socketize the DDMP core to comply with Virtual Socket Interface Alliance (VSI) standards for virtual component reuse. Sharp's DDMP, a new asynchronous media processor, has widespread applicability in the consumer electronics market thanks to its high performance, high-throughput capability and low-power requirements. The DDMP's scalable, flexible architecture can be tailored to deliver optimal performance in an SOC solution.
The asynchronous behavior of the processor greatly reduces chip-level power requirements and eliminates deep-submicron design challenges associated with high-frequency clock networks found in many large multimedia ICs, making it ideally suited to sub-quarter micron system-chips.
Sharp will integrate the VSI-compliant DDMP core in its own designs as well as market system-chip solutions to other electronics companies. Sharp's investment in DDMP socketization will reduce design-cycle times for future SOC implementations utilizing the DDMP core. The DDMP core socketization is the first phase of a long-term contract between the two companies. Subsequent activities will have Cadence providing design and virtual-component- portfolio infrastructure services to assist Sharp in meeting multimedia technology and design-bandwidth challenges.
***S3 and UMC Achieve 0.18u Graphics Chip (December 9)
Newsbytes reports that S3 and UMC Group have a graphics chip that officials said packs 2.1 million logic gates, or 8.4 million transistors, onto a single piece of silicon. Intel's Pentium II processor only has about 1.8 million gates.
S3 made the announcement because an early sample of the working chip had come back from the fabrication plant. It will be officially launched during the first half of 1999.
Details of the new 0.18-micron design have not been disclosed but the S3 says it will disclose more when the part is officially launched in the first half of 1999.
***QoS Standard COPS Clears IETF
(December 11)
The Internet Society's Internet Engineering Task Force (IETF) has completed work on the COPS standard which support Quality of Service products.
All the specifications for COPS have approved, and all interoperability tests are done. Vendors that have embraced COPS include Cisco, Nortel Networks, 3Com and Intel. IPHighway products - a customer premise equipment unit called ThruQoS (available now) and a carrier-targeted unit called Open Policy Server (due out January) are interoperable with equipment sold by the COPS advocates. ThruQos is in interoperability tests with Icon CMT, an Internset service provider that is being acquired by Qwest. ThruQoS starts at $20,000.
***Autodesk Uses Java With Enterprise-Wide GIS (December 9)
Autodesk announced that it is using Java to extend the ability to access live, interactive maps and associated data to Apple Macintosh and Sun Solaris users with the release of Autodesk MapGuide 4.0 software in January.
The company is adding substantial new interactive functionality and a full API to support Autodesk MapGuide software's feature set,. Such features as live, selectable vector data, raster imagery, GIS analysis tools, MapTips (ToolTips for map objects), combined with over 150 API calls represent advanced features that aren't currently available in a Java-based solution. Furthermore, developers can expect the same behavior within the Java Edition Viewer as they experience with the ActiveX and Plug-in Viewers, and enjoy the write-once, run anywhere benefit of the Java development environment.
***Lufthansa Chooses E&S Visual System Technology (December 8)
Lufthansa Flight Training (LFT), the training company of German flag carrier, Lufthansa Airlines, has selected Evans & Sutherland Computer to supply the visual system for its new A340-300 Full Flight Simulator.
The visual system will be based on an ESIG image generator and ESCP-2000 raster calligraphic projector, the highly successful combination that has consistently led the market.
LFT is the first commercial customer to select the ESIG-3800GT, the latest ESIG image generator to be added to the E&S product portfolio. The ESIG-3800GT is an evolution of the well-established and field-proven ESIG architecture. It incorporates significant hardware and software upgrades and provides an impressive improvement in performance, particularly in the areas of polygon capacity and texture. The visual system is a three-channel configuration displaying a 200-degree by 40-degree field of view. LFT also will receive a complete modeling system, including a hot-spare image generator and projector. EaSIEST NT, the most powerful modeling suite developed by E&S, is available on CD for PC-based Window NT workstations. Modern, easy to use, commercially available third-party software packages are bundled with sophisticated E&S proprietary software to provide the most capable suite of modeling tools for simulation applications.
The simulator will be installed at LFT's training facility at Frankfurt Rhein Main Airport, where all of the existing simulators operate with E&S products. The A340-300 will be LFT's 27th simulator to use visual systems from Evans & Sutherland. The agreement contains options to replace all of LFT's SP-X Visual Systems with the latest technology.
***ILECs Ask FCC To Lift Restrictions On DSL Deployment (December 8)
Communications Today reports that a request for fewer regulations has been filed with the FCC as a way to speed deployment of high-speed data lines.
The proposal was filed as part of the FCC's ongoing consideration of how to encourage the deployment of advanced telecommunications services (CC Docket 98- 147) - an obligation conferred on the agency by section 706 of the 1996 Telecommunications Act.
The ILECs have made similar requests in previous filings. Although there was nothing in yesterday's filing that pertains directly to computer companies, it was signed by several high-tech firms that would benefit from a more rapid deployment of digital subscriber lines (DSL). Signatories include Intel, Compaq, Microsoft, Gateway, BellSouth, Bell Atlantic, GTE, SBC Communications, U S West, the Information Technology Industry Council and the Business Software Alliance.
Notable by its absence was Ameritech, which is the only Bell operating company (BOC) that thinks it will be possible to offer DSL service under the conditions currently under consideration by the FCC.
The other BOCs and GTE made several requests of the FCC, including:
· They want a looser definition of "separate subsidiary" so that they can offer DSL through an affiliate that is more closely linked with the parent corporation.
· They want the FCC to "grant liberal waivers of requests for changes in interLATA boundaries" for data services."
· Freedom from requirements that they offer DSL electronics as unbundled network elements (UNEs) "when offered on an integrated basis."In return for the FCC granting their requests, the ILECs promise they will do more to assist competitive local exchange carriers (CLECs) in establishing DSL services. CLECs pounced on the ILEC proposals as a sham.
***Digital Broadcast Network Adds NetShow 3.0 and Liquid Audio (December 10)
Digital Broadcast Network Corporation (DBN), a national OC3 ATM IP network linking 28 cities in the United States, announced that it now supports Microsoft's NetShow 3.0 and Liquid Audio, a secure online streaming platform for distribution of professional-quality audio.
DBN is a leading provider of digital video and audio content for the Internet and Intranets using high-speed, audio/video streaming servers and high-capacity fibre channel disk array storage. DBN provides audio and video streaming services for corporate training, sales support, events and entertainment.
Using NetShow 3.0, RealPlayer and Liquid Audio, DBN offers new features such as video and audio on-demand and e-commerce
distribution.DBN offers clients a network to distribute on-demand, real-time or live audio and video throughout the world. Its Carrier Network Access Points (CNAPs) provide more than 1000 Mbps of dedicated DS3 access into the carrier networks of UUNET, Sprint, GTE BBN Planet, Cable and Wireless/MCI, IBM Global and Digex.
Digital Broadcast Network Corporation was founded in 1998 to provide network computer and communications services to Fortune 500 companies and professional users such as software companies and last mile providers (cable, satellite, and phone).The DBN network allows users to share bandwidth between voice, video and data applications with quality of service guarantees. DBN's network allows companies to stream live events such as keynote addresses, seminars, a CEO monthly broadcast or any event that requires extreme amounts of bandwidth. DBN also provides consulting, engineering, and specialized software development services to clients.
***Swedish Broadcasters Delay Digital
(December 9)
Cable Europe reports that four of Sweden's digital commercial broadcasters have delivered an ultimatum to the country's culture ministry stating they are not prepared to go ahead with the launch of digital terrestrial TV on January 1. Their launch has been postponed until further notice with August seen as the most likely date.
TV3, Kanal 5, Canal Plus and TV8 are concerned that the combination of set-top box shortages and the range of available services will seriously impair the successful operation of Swedish DTT. The four are also concerned about the independence of Senda, the subscriber management company owned by transmission company Teracom, SVT, and TV4.
Pubcaster SVT and TV4 seem set to continue preparing for a January 1 start date. A launch in August would give a realistic time frame, enabling the broadcasters to take advantage of the autumn marketing season. The long days experienced by the Nordic countries during the summer months have a negative impact on the TV market. The delay will have implications for Telia Infomedia, Sweden's largest cable operator and a subsidiary of the national telecom operator, which has been working on the assumption that Swedish consumers will wait till the terrestrial service is available before deciding which to buy.
It is widely believed that Telia has had little success so far in encouraging take-up of its digital offering, in a country where most cable contracts are with landlords rather than with end users. At the start of December, the Thorn retail chain began offering digital cable boxes, supplied by French manufacturer Sagem, for rental for SKr99 a month with a minimum contract duration of 36 months. Telia, under the new management of Ingrid Engstrom since October, has decided to close its own channel, TV9, in the New Year. The channel, which served as a barker channel as well as carrying actual programs, was deemed not be worth the investment. Meanwhile, the main cable operator in the Stockholm area, Stjarn TV, is preparing for the launch of its own digital service in the New Year. Like Telia Infomedia, Stjarn TV has adopted the France Telecom/Viaccess-based Eurobox standard for the implementation of the service, with most of the infrastructure supplied by Norway's Tandberg Television as part of a SKr12 million investment.
***PlayStation Game Console Poised to Dominate Christmas for Third Year in a Row (December 10)
Sony Computer Entertainment reports that an initial "flash" TRSTS report from The NPD Group shows the PlayStation game console selling nearly 207,000 consoles during the first two weeks of November alone. That gives the company a 64 percent share of the hardware market. Based on sales of the top 100 video games from this unextrapolated report, more than 1.6 million units of PlayStation software were sold, accounting for more software sales than all other video game systems combined.
According to the same flash report, the strong demand for a number of PlayStation titles, such as Crash Bandicoot: WARPED and Metal Gear Solid, gave PlayStation six of the top 10 game titles in the industry for the first two weeks of November.
The PlayStation game console has now led the burgeoning video game industry for 18 months in a row. With a North America installed base of more than 13.5 million units, a PlayStation game console can be found in one out of every eight U.S. homes.
Sony expects to ship more than 8 million units of hardware in its North American territory during its current fiscal year, bringing the PlayStation game console shipments past the 18-million-unit mark by the end of March 1999. It has already outsold its competition this year in hardware by an almost 2-to-1 margin, with a year-to-date market share of 65 percent. It has had similar success in software sales, with software market share of more than 65 percent year-to-date in North America. The company expects to ship more than 50 million units of software in North America this fiscal year.
While the company now enjoys a strong lead in North American sales, its performance in its other regions makes PlayStation the worldwide leader in next-generation consoles. In just over three years, the company has shipped more than 43 million PlayStation game consoles worldwide; 13.2 million units in Japan, 13.8 million units in Europe and 16.1 million units in North America, as announced on October 30, 1998.
It has also shipped more than 305 million units of software around the globe-more software than has been sold for the 10-year-old Game Boy. The company has shipped more than 130 million units in Japan, 76 million units in Europe and 99 million units in North America.
This growth in hardware and software has earned PlayStation the distinction as the most successful product ever introduced by entertainment giant Sony Corp.
All information reported from The NPD Group's November "flash" TRSTS report is unadjusted. Sales monitored by the TRSTS measurement system only account for approximately 70 to 75 percent of total PlayStation sales within the North America region in each monthly report.
***PC OEM and Channel Inventory Declines as X86 Microprocessor Shipments Continue to Rise (December 10)
Research from International Data Corporation (IDC) shows the total x86 microprocessor market reached 29.1 million units in the third quarter, a 22.6% increase over the previous quarter. This very healthy quarter-on-quarter increase is a sign of renewed strength in the processor and PC markets.
After PC channel inventory issues dragged down both PC OEM shipments to the channel and microprocessor sales in the first half, OEMs are once again ordering at consumption rates. The sub-$1,000 desktop PC market is driving microprocessor growth-more than 90% of the quarter's shipment increase came from the low-end.
According to data contained in IDC's bulletin, "Prices Recede Again as Units Soar and Intel's Share Dips to New Low in 3Q98", Intel's share of x86 microprocessor units fell to a new low of 76.3% in the third quarter, as the company's competitors continue to gain design wins and ramp chip production. This is nearly a ten point fall from an 86.2% unit share rating in the first quarter. The largest share gain has gone to AMD; at 13.0% in 3Q98, the company has more than doubled its share of the market from 6.1% in the third quarter of 1997.The share gains of Intel's competitors-AMD, Cyrix/National, IBM, and IDT-are all at the low-end of the market.
Because these companies focus almost exclusively on sales of processors for the rapidly growing sub-$1,000 PC segment, they have a very different strategy for this portion of the market. According to Kelly Henry, Senior Analyst with IDC's Semiconductor Research Group, "Intel's need to juggle marketing and sales efforts for both the Pentium II and Celeron product lines creates an interesting dilemma for the company. To date, Intel has delayed introducing new technologies into its Celeron family to play up the value of these developments within its Pentium II line. We believe this technology withholding is hurting Intel, and allowing competitors such as AMD and Cyrix to grow share by deploying new technology at the low-end as soon as it is available."
Despite continued pressure on Intel's unit share, IDC believes that the company is well-positioned for the future. Third-quarter microprocessor unit shipments and revenue were both company records, and Intel products are as dominant as ever in $1,500 and above PCs. The company's product segmentation strategy has enabled a stable blended ASP over the past five quarters, even as the industry average has steadily dropped.Gross margin, which hit a low in the second quarter, moved up in the third quarter and is expected to improve again in the fourth quarter as shipments of high-ASP Pentium II Xeon processors accelerate and cost reduction programs take effect.
***Cable to Top Broadband Growth
(December 8)
Cablefax reports that a Frost and Sullivan study claims that The aggregate high-speed data market, including cable modems, DSL, ISDN, T1 and /T3, generated $14.9bln in '97 revenues with potential revenues of $42.03bln by 2004. The report concluded that cable's high-speed data market is growing at a 850% revenue surge from '96 ($5.7mln) through '97 ($54.5mln), and is forecasted to lead all high-speeders in compound annual growth from '97-'04 at 64%, while DSL (35%) and ISDN (26.5%) follow far behind. As this growth would suggest, cable high-speed revenues are expected to soar as well, predicted to reach $265mln for '98 and $1.8bln by '04 as the industry branches its fat pipe to more markets. Increased demand for residential and small and home-based businesses coupled with increased Internet usage will drive high-speed cable, while the "restraints," many of which are already being addressed by CableLabs and the DOCSIS standard, are: business security, ADSL competition and lack of interoperability standards.
***National Semiconductor Reports Loss
(December 10)
National Semiconductor announced a net loss of 29 cents per share for the second quarter of fiscal 1999, ended Nov. 29, 1998, before the effect of previously announced one-time charges related to manufacturing restructuring and the termination of a foundry agreement with IBM Corporation.
The net loss for the quarter, also excluding one-time charges, was $48.6 million on revenues of $510.1 million. This compares with net income of $28.9 million, or 17 cents per share (diluted), on sales of $719.9 million, in the second quarter of fiscal 1998. Including the one-time charges, National reported a net loss of $94.4 million, or 57 cents per share for the quarter.
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