S3, Compaq bet on MPEG surge with PC chipset

Electronic News, June 19, 1995 by Anthony Cataldo

SANTA CLARA, CALIF.--In an effort to bring hardware-based MPEG playback to the motherboard, S3 and Compaq Computer last week unveiled a new PC architecture based on an S3 chipset to be used in Compaq's Presario PCs by year-end. The announcement was made, however, against a backdrop of lingering doubt over how soon MPEG will be embraced by independent software developers and ultimately PC users.

MPEG proponents note the S3/Compaq solution is one of several converging events that will help clear the path for software developers to churn out more MPEG titles, which are still scarce because of the dearth of MPEG-enabled PCs currently in use.

"The recognition by Compaq that MPEG is a common feature is very key," said Jim Anderson, VP of marketing for Santa Clara, Calif.-based Jazz Multimedia and cofounder of the Open MPEG consortium (OM-1). "It creates such a momentum that other system vendors are going to have to respond. I think this broke the logjam."

MPEG, based on an open industry codec for high-quality digital video playback, has been gathering more steam in recent weeks. Recently, Microsoft said it would include Mediamatics' software decoder for future Windows operating systems (see page 20), and promised to distribute a software developers' kit later this year for Windows 95.

Microsoft also said it would release by this fall its Video Draw tool kit, an extension of its Direct Draw which will allow the ISVs to meld MPEG video and graphics, said Paul Osborne, director of multimedia technology for Microsoft's Personal Systems division.

And last week the Multimedia PC working group, made up of both hardware and software companies, said its latest standard multimedia PC specification includes MPEG video playback, based on the OM-1 standard. OM-1, which has developed the MCI Windows driver interface and an application programming interface (API), is working closely with Microsoft to develop Microsoft's MPEG API for Windows 95, Mr. Anderson said.

Compaq said it was motivated to include MPEG as a fundamental function of the PC because it is an open industry standard and offers superior image quality compared to more popular codecs, such as Indeo and Cinepak.

"We think this is a great leadership opportunity for Compaq," said Mark Vena, Presario product line manager. "The software is not going to be an easy part, but it's going to be integral. One advantage is that independent software developers look to Compaq for leadership."

Both S3 and Compaq are wagering that software developers will start churning out more MPEG-1 titles by year-end, partly by reaching out to the ISVs themselves. By fall, Compaq and S3 plan to host an ISV developers' conference and have also corralled at least five software developers which have agreed to bundle software MPEG titles in future Compaq systems using the S3 chipset.

Compaq's Rod Schrock, VP of Presario products, expects the first PCs using the chipset will bear a $100 premium--a price most consumers are willing to pay for the added features. The first PCs will be priced at mid-range cost of $1,799, putting them in the realm of half the PC market, he said. "Compaq is convinced that this provides the foundation for multimedia in 1995. This allows us to reduce the buying risk to our customers."

Compaq is reportedly not the only major PC supplier with a vested interest in MPEG playback. IBM and Packard Bell are rumored to be selling PCs with MPEG playback in Japan and are taking a wait-and-see strategy for the U.S.

Some attention has also been given to MPEG on portable PCs. C-Cube, for example, is slated to start shipping by the second half of 1995 its CL480PC, a decoder that features low-power consumption and small form-factor packaging.

But some observers cautioned that it could be premature to rush into MPEG-1 decoding on the system level. "We don't see MPEG becoming one of the top three codecs until 1996," said Rick Doherty, director of Seaford, N.Y.-based Envisioneering Group. "This chipset may do very well for three to nine months, but it's going to need titles beyond those that come in the box."

For Compaq, the S3 solution will allow the company to quickly sell off its inventory of 486-based systems by adding multimedia capabilities. Mr. Doherty said. "This makes tremendous sense for Compaq," he said. "They need this because they have all these 486s out there that can't do software MPEG."

Compaq, however, denied it was simply trying to unload 486s. "Later on in the year, the lion's share of the systems we will be shipping will be 586-based," said Mr. Vena. "You will not see this technology shipped with 486-based products by the end of the year."

Another potential pitfall for MPEG is confusion over APIs. Though the OM-1 group has developed an API that has gained Microsoft's approval, Sigma Design recently claimed most software developers are still using its Real-Magic API for MPEG title development. Sigma Design made some of its technology available as part of the OM-1 spec, but it still may hold important patents covering other areas.