Entertainment software category grows up - computer games - Video Sell-Through

Discount Store News, July 8, 1991 by Pete Hisey

Discounters' video departments are set for a change in the coming years, as demand for interactive entertainment through a variety of new technologies cuts into the nation's love affair with the VCR.

Several new products are touting themselves as the "new VCR," and the dizzying array of software to support them offers profit potential for retailers. At the same time, the growing maturity of the category means that soon move this software will soon move out of the toy department.

The latest Consumer Electronics Show may be remembered as the juncture at which the video game industry very suddenly grew up. While shoot 'em up software remained the rule, thoughtful, adult and genuinely entertaining software has become a sizeable force in the home entertainment field, as has software aimed at educating and amusing the very young.

And, clearly, more sophisticated hardware, particularly interactive compact disc systems, has stimulated the market. Software meant for play on pcs, CD-I from Magnavox, CDTV from Commodore, CD-ROM from Sony and NEC (and soon from Sega and Nintendo), NID (compressed) CD-ROM from NEC, and 16-bit video game systems from Nintendo, Sega and NEC is light years ahead of the 8-bit video software that has dominated the market for the past half-decade.

The major problem: virtually none of the above are compatible. What plays on one system will not play on any of the others, guaranteeing an ever-expanding software proliferation for the next few years. Eventually, however, consumers are going to get tired of a never-ending array of electronics hanging around their entertainment centers, and one or two systems are going to become dominant.

Until very recently, Nintendo would have been odds-on to be one of the survivors. Certainly the entertainment giant, with an installed base of nearly 30 million units, maintains an edge over competitors. But the company was slow to introduce 16-bit technology (due on the market in September) while competitor Sega will have shipped over 2 million units by the fourth quarter. And, Nintendo only reluctantly announced its entry into the compact disc market.

However, it has signed an agreement with Philips that will mean CD software developed for Nintendo's coming CD player will also play on Philips' CD-I player. The synergy between the industry's most popular name and what appears to be its most impressive new technology could be enormous.

The growth of hardware capability, including escalating pc penetration, has opened up a whole new world of software development. Disney, for instance, has developed a whole new division to service computer owners with entertainment and educational software that has enormous across-the-board appeal, with particular emphasis on older, wealthier and more sophisticated consumers. Its new Roger Rabbit computer game is a combination of the movie's graphics, Rube Goldberg-type game play and an intriguing soundtrack.

Another title, Animation Studio, teaches animation techniques, allowing users to design and produce their own cartoons. Yet another lets children accompany Mickey and Minnie Mouse on an adventure that simultaneously teaches reading and math skills, at a pace children will find comfortable.

Another interesting application is Nemesis' Go Junior and Master, from Toyogo. Go is a sophisticated Oriental version of chess that many Japanese consider the basis for all business strategy. It is quickly catching on with educated Americans, despite the years that it normally takes to go beyond the amateur stage of the game. Nemesis, playable on all IBM and Apple compatible machines, is truly astounding. It can instantly show a player the long-term results of any move, suggest alternate moves, explain strategy and play sample games to demonstrate points. With such easy access to an expert opponent, Go could become as popular here as it is in Japan, China and Korea as well as other Asian countries.

As with computer games, software developed by American Interactive Media for play on Philips CD-I system combines adult games, educational appeal, general entertainment and some instructional titles. A Visit to Sesame Street: Letters, for instance, encourages children to develop new skills at their own pace (if the child gets too many answers wrong, for instance, Big Bird suggests watching cartoons on his own "TV set"). A video jukebox plays a selection of hit songs, with lyrics, photos of the performers, background information and high-quality graphics added. Other software is on the way, said AIM president Bernie Luskin. The company will introduce more than 50 titles this fall when CD-I debuts.

The variety of software already in the works is impressive. From Treasures of the Smithsonian, which presents video images of exhibits along with background information, cross-referencing, the ability to zoom in on particular portions of paintings or sculpture and even a chance to play ancient instruments, to TimeLife Photography, which allows users to "shoot" their own photos, then offers critiques and suggestions, the software is useful in a way that information has never been available before.