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Discount Store News, Feb 6, 1995 by Pete Hisey

One of the most unique approaches was developed by IBM Software. The company is distributing specially packaged versions of popular games, like Maxis' SimFarm, meant to retail at $5. The catch: Users can play the full game, but they can't save it. If they like it, a quick toll-free call and credit card transaction will make the game fully functional.

IBM is also touting an instore kiosk that will instantly cut a copy of any one of up to about 1,000 titles, which can be updated on a daily basis. Similar to the music technology developed by Blockbuster and IBM, customers pay for the software at the cash register and retailers then pay IBM, which in turn pays the publisher. According to the company, the kiosk is meant to supplement a standard retail assortment, not replace it with virtual inventory.

A third approach is to bundle dozens of SOHO applications on a single $10 CD and allow a user to try any of them for free for 30 days. A quick toll-free call then unlocks whichever programs the user wants to keep.

Best Buy: CE vanguard

LAS VEGAS -- Three events that coincided with the Winter Consumer Electronics Show provided most of the buzz on the exhibit floor. Wal-Mart's decision to merchandise 3DO hardware and software at all of its 2,300-plus stores was a major boost for the struggling platform.

In addition, on the first day of the show, both Circuit City and Best Buy released December sales figures, and for the first time, Best Buy was No. 1, racking up $1.1 billion during the month compared to Circuit's $937 million. As Best Buy continues to open its highly productive Concept III stores (with average sales from $35 million to $40 million, compared to Circuit's average of less than $20 million), it should pull away as the nation's top electronics retailer. Circuit would have to open nearly two stores for every new Best Buy to regain the lead. Over the next two years, each chain plans to open about 50 new units, including a major invasion of Miami by Best Buy this spring.

Also, according to Tandy chairman John Roach, a major Pentium retail promotion is on the way. While he would share few details, he said that Tandy will become the industry leader in Pentium upgrades during the first quarter. Intel officials said that a major Pentium promotion is on the way, but wouldn't release details. Apparently, consumers will be able to take their upgradeable machines into select retail outlets and upgrade at a very low price, perhaps as little as $200, by trading in their old Intel chips. Intel would presumably make its money back by recycling the still-valuable chips.

Since most new software runs better on Pentium (and many publishers, like Hyperbole, are recommending the chip on-pack), this could be a blockbuster for Intel, which is in a major war with competing chips and even some of its own customers. Intel will also introduce a POP demo which will compare 486 and Pentium game play side-by-side.

Putting power in the home user's hand

LAS VEGAS -- The infobahn is on its way to your television screen, your telephone and even your pocket, as a wide range of new technologies debuted at the Winter CES.