WILL VIDEOGAME MACHINES BREAK MICROSOFT'S MONOPOLY? (Industry Trend or Event)

Soft-Letter, May, 1998

While the Justice Department and Microsoft were busy debating the finer points of antitrust law, we were roaming the aisles of the huge Electronic Entertainment Expo in Atlanta, checking for a credible alternative to the Windows-Intel hegemony. The E3 show is one of the events where videogame technology is taken seriously, and we saw some intriguing signs that companies like Sony, Nintendo and Sega just might become serious players in the home computing market.

In some ways, of course, these machines already compete quite successfully for consumer dollars. Worldwide videogame sales are reported to be worth some $15 billion a year; 40% of U.S. households currently own some type of videogame device. And it took the Sony PlayStation--currently the best-selling...

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