FEAR AND LOATHING ON THE COIN-OP TRAIL

FOR THE PAST SEVERAL WEEKS I HAVE BEEN TRAVELLING ACROSS THE LAND, TALKING WITH
DISTRIBUTORS AND OPERATORS, AND LEARNING HOW TO SELL OUR PRODUCTS.  THIS MEMO
WILL TRY TO SUMMARIZE SOME OF THE THINGS I HAVE LEARNED DURING THESE TRAVELS.

I. GENERAL INDUSTRY OVERVIEW
   
   IT DOES SEEM THAT THE INDUSTRY IS COMING BACK SOMEWHAT.  MOST DISTRIBUTORS
   HAVE BEEN STATING THAT THEIR BUSINESS SEEMS TO BE PICKING UP SOMEWHAT AND
   THAT THE OPERATORS ARE STARTING TO BECOME MORE HUNGRY FOR PRODUCT THAN THEY
   HAVE BEEN IN SOME TIME.

   OPERATORS, TOO, HAVE BEEN SEEING MORE POSITIVE SIGNS.  ON AVERAGE, I WOULD
   SAY THAT OPERATORS EARNINGS HAVE BEEN UP AROUND 5% OVER THE SAME PERIOD
   LAST YEAR.  WHILE THIS DOES NOT APPEAR TO BE REAL HIGH OF AN INCREASE, IT'S
   A LOT BETTER THAN THE 20% DECLINES WE'VE SEEN THE PAST COUPLE OF YEARS.
   
   THE GENERAL FEELING AMONG OPERATORS AS TO THE COMEBACK OF THE INDUSTRY STEMS
   FROM A COUPLE DIFFERENT REASONINGS.  FOR ONE, THE OPERATOR IS BEGINNING TO
   FEEL THAT MANUFACTURERS HAVE BEEN COMING OUT WITH BETTER PRODUCT LATELY...
   AND THIS PRODUCT IS STIMULATING INCREASED REVENUE.  AS WELL, I THINK THE 
   OPERATOR IS FEELING BETTER ABOUT THE MANUFACTURERS ABILITY TO PRODUCE GOOD
   PRODUCT AND REASONABLE PRICES.  ESPECIALLY WELL LIKED ARE THE SEVERAL 
   SYSTEMS AVAILABLE (NINTENDO'S AND OURS) AS WELL AS THE WIDE VARIETY OF LOW-
   PRICED KIT PRODUCT.  

   GOING INTO THE AMOA, ONE THING IS CERTAIN...THE OPERATORS WHO ARE LEFT IN 
   BUSINESS SEEM TO BE THE OLDER, ESTABLISHED GUYS WHO HAVE BEEN AROUND THE
   BLOCK A FEW TIMES.  THEY SEEM PRETTY BUSINESS SMART AND WON'T JUST BUY 
   ANYTHING THAT COMES OUT.  THEY CONSIDER ROI ISSUES CAREFULLY AND MAKE
   DECISIONS BASED ON THE EFFECTS TO THEIR WHOLE ROUTE.  THEY SEEM TO BE 
   EXTREMELY PRICE SENSITIVE AND WILL USUALLY OPT FOR LOW PRICED WHOLE GAMES
   AND KITS TO COVER THEIR ENTIRE ROUTES RATHER THAN INVEST HUGE SUMS OF 
   MONEY FOR A LOT OF HIGHER PRICED EQUIPMENT, EVEN THOUGH THAT EQUIPMENT
   MAY BE EARNING MORE THAN THE LOWER PRICED STUFF.

 
 II. WHAT'S HOT OUT THERE

   ONE OF THE HOTTEST THINGS GOING IN THE INDUSTRY RIGHT NOW IS CLASSIFIED
   AS "REDEMPTION EQUIPMENT".  THESE ARE THOSE CRANE GAMES, ETC. THAT YOU
   PUT COINS INTO, MOVE A CRANE ARM AROUND, AND TRY TO PICK UP PRIZES LIKE
   LITTLE STUFFED ANIMALS, RUBBER SPIDERS, PLAYING CARDS, ETC.  THESE 
   THINGS ARE EARNING A TON OF MONEY ALL OVER THE COUNTRY (WHERE THEY'RE
   LEGAL) AND HAVE A LOT OF DISTRIBUTORS AND LARGER OPERATORS EXCITED.
   THEY ARE TYPICALLY QUITE EXPENSIVE (6-7,000 BUCKS) AND ALSO REQUIRE A
   WEEKLY INVESTMENT IN PRIZES BY THE OPERATOR.    

   ANOTHER HOT CATEGORY, PARTICULARLY IN THE MID-WEST AND EAST COAST ARE
   "ACTION ORIENTED" PIECES SUCH AS SKEE-BALL AND ELECTRONIC DARTS...
   PARTICULARLY ELECTRONIC DARTS.  IN THE MID-WEST SOME DISTRIBUTORS SHOW
   ROOMS LOOKED LIKE DART SUPPLY SHOPS WITH ALL SORTS OF DART ACCESSORIES FOR
   SALE. AS WELL, MANY DART LEAGUES HAVE FORMED IN THE BARS AND STREET 
   LOCATIONS AND SEEM TO HAVE GREATLY SPURRED ON THE INTEREST OF ELECTRONIC,
   PUB-TIME DART ACTIVITY.  INTERESTINGLY, DART ACTIVITY OUT ON THE WEST
   COAST IS NEXT TO NIL, WITH MOST THINKING THE CLIMATE HAS MUCH TO DO WITH
   IT'S LACK OF SUCCESS...BUT, WOW, IT'S BIG BACK EAST!!

   OPERATORS ALSO SEEM QUITE APPRECIATIVE OF THE SEVERAL CONVERSION SYSTEMS
   THAT HAVE BEEN PRODUCED.  THEY DO SEEM TO FEEL THAT SYSTEMS ARE GOOD FOR
   THEIR BUSINESS AND THAT MANUFACTURERS HAVE REALLY ATTEMPTED TO HELP THEM
   WITH THE DEVELOPMENT OF SYSTEMS. ONE THING, HOLDING THEM BACK, HOWEVER, IS
   A VERY REAL APPREHENSION THAT SOME MANUFACTURERS ARE NOT AS DEDICATED TO 
   SYSTEMS AS THEY WOULD CLAIM TO BE. IT WILL TAKE A LITTLE TIME TO PROVE TO 
   OPERATORS THAT OUR SYSTEMS ARE FOR REAL, BUT THEY ARE COMING AROUND.  THE 
   RELEASE OF "DOOM" IS MEANING GREAT THINGS TO THE OPERATOR'S BELEIF THAT, HEY
   THE ATARI SYSTEM IS FOR REAL.  WE MUST CONTINUE TO ENFORCE TO THE OPERATORS
   THAT WE ARE DEDICATED TO THE SYSTEM APPROACH, IF WE INTEND ON INCREASING THE
   BASE OF UNITS.

   WHILE SPEAKING OF WHAT IS HOT AND ON THE SUBJECT OF SYSTEMS, I WOULD BE 
   REMISS IF I DIDN'T MENTION...NINTENDO.  TO BE SURE, THESE GUYS ARE VERY
   HOT RIGHT NOW, AND OPERATORS ACROSS THE COUNTRY SEEM TO FEEL VERY STRONGLY
   THAT NINTENDO HAS DONE MORE FOR THEM THAN ANY MANUFACTURER IN THE PAST 
   SEVERAL YEARS HAS.  WHILE THEY WILL ADMIT THAT MOST OF THEIR GAMES ARE NOT
   THAT GREAT AS EARNERS, THEY ARE EAGER TO POINT OUT THEIR UNBELEIVABLEY LOW
   COST AND GREAT ROI BECAUSE OF THE LOW COST. THEY ALSO LOOK TO NINTENDO AS 
   FIRST OUT WITH A SYSTEM AND HIGHLY SUPPORTIVE OF THEIR SYSTEM OFFERING MANY,
   MANY GAMES AT THIS POINT IN TIME COMPARED TO THE COMPETITION.  ONE THING 
   NINTENDO DID THAT REALLY WENT OVER BIG WITH OPERATORS WAS OFFERING THEIR
   UNISYSTEM AS A CONVERSION FOR OTHER GAMES, NAMELY DONKEY KONG.  WHILE THEY
   INITIALLY STRUGGLED TO SELL BASE UNITS, IT SEEMS LIKE OFFERING THE SYSTEM
   FOR CONVERSION OF DONKEY KONG AT A REASONABLE PRICE REALLY DID THE TRICK.
   
   A FINAL WORD HERE, WOULD BE THAT IT DOES APPEAR THAT OLDER ORIENTED GAMES
   HAVE BEEN DOING QUITE WELL.  SEVERAL OPERATORS AND DISTRIBUTORS TOLD ME THAT
   THEIR NUMBER ONE PIECE THIS YEAR HAS BEEN THE QUIZ GAME TRIV WHIZ.  WHILE
   THIS GAME DOESN'T SHOW UP IN POLLS AND AT ARCADES, I THINK THAT OVER THE 
   BROAD SPECTRUM, OPERATORS ACROSS THE COUNTRY WHOSE BREAD AND BUTTER 
   ARE DEFINATELY THE BARS AND GIN MILLS, NOT ARCADES, WOULD MAKE THE SAME
   CLAIM AS DID OUR DISTRIBUTOR DAVE GILFOR, OF ACTIVE AMUSEMENTS IN PHILLY...
   ..."I THANK GOD FOR TRIVIA GAMES THIS YEAR!"


III. COMPETITOR UPDATE
       
     HERE'S A BRIEF UPDATE AS TO NEW GAMES AND RUMORS I HEARD OUT ON THE ROAD,
     MOST OF THIS STUFF SHOULD SHOW UP AT AMOA.

     NINTENDO:
     NINTENDO HAS TWO NEW GAMES FOR THEIR UNISYSTEM. A SOCCER GAME THAT REALLY
     LOOKED LOUSY SHOULD NOT BE A FACTOR IN THE MARKETPLACE AT ALL, REGARDLESS
     OF COST.  ANOTHER GAME MACH RIDER LOOKED REALLY PRETTY BAD, BUT MAY DO OK
     FOR THEIR SYSTEM..IT IS RATHER POOR QUALITY POLE POSITION ON MOTORCYCLE 
     WITH SHOOTING AND OBSTACLE AVOIDANCE THROWN IN...STINKO!

     THERE IS ALSO RUMOR OF A ARM WRESTLING CONVERSION FOR THE BASE OF PUNCH
     OUT GAMES THAT ARE OUT THERE. APPARANTELY, HOWEVER, THE GAME IS NOT 
     TESTING THAT WELL, AND SINCE IS NOT DEVELOPED BY THEIR HOME DESIGNERS
     FOR THE UNISYSTEM, MIGHT BE QUITE EXPENSIVE, I.E. SUPER PUNCH OUT.

     THE OTHER THING THEY HAVE DONE IS COME OUT WITH A CONVERSION SET-UP FOR
     PAC-MAN THAT ALLOWS THOSE OLD PAC-MAN GAMES TO BE CONVERTED INTO, YOU
     GUESSED IT, UNISYSTEMS.  HOWEVER, THEY ARE HAVING SOME PROBLEMS WITH 
     THIS CONCEPT AND OPERATORS ARE NOT EXACTLY GOING FOR IT AS THEY DID WITH
     THE DONKEY KONG UNISYSTEMS...THE PROBLEMS ARE FOURFOLD...THE PAC KIT IS
     EXPENSIVE (MORE THAN THE DONKEY VERSION AND ALMOST AS MUCH AS A NEW 
     UNISYSTEM)...IT IS A VERY DIFFICULT CONVERSION...MANY OPERATORS ARE 
     RELUCTANT TO CONVERT PAC MAN'S...AND MANY OF THE PAC MAN'S HAVE BURNED
     IN MAZES IN THE MONITORS AND THE CONVERSION'S LOOK REALLY POOR BEHIND THE
     PHOSPHUR BURNS.

     BALLY/SENTE:
     NOTHING REALLY TO REPORT HERE, EXCEPT FOR A FOUR PLAYER HAT TRICK THAT IS
     PRESENTED IN A NEW FOUR PLAYER TABLE TOP CONFIGURATION, NOT FOR THE  
     EXISTING SENTE CABINET THAT ALREADY HAS BEEN CHANGED BEFORE.  THIS SEEMS
     TO HAVE REALLY TICKED OFF OPERATORS AND DISTRIBUTORS WHO WERE HOPING THIS
     PIECE TO BE A CONVERSION FOR THEIR EXISTING SENTE SYSTEMS.

     BALLY HAS SHOWN NOTHING NEW EXCEPT FOR YET ANOTHER ARTICLE BY BOB MULLANE,
     THEIR CEO, IN BOTH CHICAGO PAPERS STATING THAT HE DID NOT OPTIMISTICALLY
     FEEL THAT BALLY WOULD BE A FORCE IN THE COIN-OP MARKETPLACE VERY MUCH 
     LONGER...IN FACT HE SAID SOMETHING TO THE EFFECT THAT BRINGING BACK 
     BALLY'S ENGINEERING FORCE TO ANYTHING LIKE IT ONCE WAS WOULD BE..."ALMOST
     IMPOSSIBLE."

     DATA EAST:
     THESE GUYS SEEM LIKE THEY WILL COOL-OFF SOON BECAUSE THEY DON'T SEEM TO 
     HAVE ANYTHING TO GOOD UP THEIR SLEAVES...(MAYBE THAT'S WHY TOM PETTIT AND
     JOLLY BACKER JUST LEFT?)...BUT YOU NEVER CAN BE SURE WITH DATA EAST...THEY
     ALWAYS SEEM TO PULL RABBITS OUT OF THEIR HATS.

     THEY HAVE TESTED A SHOOTING GAME CALLED "SHOOT-OUT" THAT IS SUPPOSEDLY NOT
     DOING THAT GREAT AND IS ALLREADY APPARENTLY SELLING AT ROCK BOTTOM CLOSE-
     OUT PRICES.  ALSO, WE KNOW THEY HAVE "TANK" WHICH WE HAD IN-HOUSE AND WERE
     NOT TO CRAZY ABOUT, RIGHT?

     WILLIAMS:
     THEY HAVE DONE IT AGAIN WITH ANOTHER SUPERB PIN-BALL GAME CALLED "COMET".
     THIS ONE IS REALLY, REALLY FUN TO PLAY AND OFFERS TONS OF ACTION UTILIZING
     AN AMUSEMENT PARK THEME.  IT OFFERS GREAT SOUND EFFECTS AND THE FIRST EVER
     1 MILLION POINT SHOT...WILL MAKE PEOPLE FORGET ABOUT SPACE SHUTTLE...ROGER
     SHARPE WILL LOVE IT (BUT IT DOES END ROGER!) AND HE'LL UNDOUBTEDLY CALL IT
     GAME OF THE SHOW AT THE UPCOMING AMOA.

     INCIDENTALLY, THE GAME IS ON TEST AT OUTER LIMITS MT. VIEW IF YOU WANT TO
     PLAY WITH IT.

     CINEMATRONICS:
     SURPRISINGLY, THESE GUYS ARE STILL AROUND...BUT PROBABLY JUST BARELY.
     THEY HAVE A SYSTEM OUT AND ARE SHOWING A PRETTY DECENT 2-PLAYER SOCCER
     GAME CALLED "POWER PLAY".  IT IS PLAYED LIKE SOCCER BUT YOU CAN PUNCH 
     OUT YOUR OPPONENT AND HIS GOALIE WITH A PUNCH BUTTON.  HEARING THAT IT
     IS NOT DOING THAT GREAT ON TEST.

     I HAVE ALSO HEARD ABOUT A BASEBALL GAME APPARENTLY CALLED "WORLD SERIES:
     THE SEASON".  DON'T KNOW ANYTHING ELSE ABOUT IT BUT THEIR SYSTEM DOES HAVE
     VERY GOOD GRAPHICS AND SOUND CAPABILITIES, JUDGING FROM THE SOCCER PIECE.
   
     KONAMI:
     THEY HAVE BEEN SHOWING A NEW CONVERSION FOR ANY RASTER GAME CALLED 
     "RUSH N' ATTACK"...IT IS A RAMBO GAME ALL THE WAY AND IS REALLY PRETTY
     GOOD.  YOU ARE TRYING TO RESCUE A BUNCH OF TIED UP GREEN BERETS AND ARE
     SNEAKING AROUND IN A RUSSIAN ARMY COMPLEX...IT'S COOL, YOU CAN KUNG-FU
     RUSSIANS, SHOOT RUSSIANS, GRENADE RUSSIANS AND EVEN FLAME THROW THE PANTS
     OFF OF THEM LITTLE COMMIE BASTARDS...REAGAN WILL LOVE IT...IT'S BEING
     CALLED "GREEN BERETS" IN EUROPE BECAUSE THEY'RE ALL SCARED OF THE RUSKIES
     OVER THERE.

     SEGA:
     APPARENTLY NOTHING NEW BESIDES HANG-ON, WHICH IS DOING PRETTY WELL BUT IS
     RATHER EXPENSIVE.  THESE GUYS ARE ALSO HEAVILY IN TO DOING THE AFORE
     MENTIONED "REDEMPTION EQUIPMENT"...AND OFFER SEVERAL DIFFERENT TYPES OF
     CRANE GAMES CURRENTLY.

     ATARI:
     I MUST MENTION THE UNBELEIVABLE REACTION WE HAVE BEEN GETTING FOR 
     "GAUNTLET".  WORD IS DEFINATELY OUT THAT THE PIECE IS HOT AND THE WHOLE
     INDUSTRY SEEMS TO BE VERY EXCITED BY IT'S EXPECTED RELEASE.  EVEN 
     OUR MANUFACTURING COMPETITORS ARE SAYING THEY REALLY THINK THE PIECE IS
     A GOOD ONE.

     "TEMPLE" TOO IS REALLY DOING WELL AND SEEMS TO HAVE TAKEN THE MARKET AWAY
     FOR USED "MARBLE MADNESSES" ALMOST OVER NIGHT, AS OPERATORS SCRAMBLE TO 
     GET CHEAP BASE UNITS TO CONVERT.  WITH THE USED CABINET MARKET GONE, AND
     THE GAME DOING GREAT, WE SHOULD HAVE A REAL GOOD SHOT AT INCREASING THE
     BASE UNITS OF SYSTEM 1.
     
     THE BOY STILL HANGS! CHECK THE LATEST PLAY-METER POLL...

IV.  SUMMARY CONCLUSIONS

     WELL ALL THIS IS FINE AND DANDY, BUT THERE ARE SOME THINGS THAT CAN BE 
     DERIVED FROM ALL THIS THAT WE MAY BE ABLE TO UTILIZE FOR PROFITABLE
     FUTURE PRODUCTS:

     1.REDEMPTION EQUIPMENT PSYCHOLOGY:
     KIDS ARE FEEDING QUARTER AFTER QUARTER INTO THESE THINGS JUST TO GET A 
     STUPID EL-CHEAPO PRIZE...SHOULD WE THINK MORE SERIOUSLY ABOUT TRYING
     TICKET DISPENSORS ON VIDEO GAMES TO AWARD PRIZES SOMEHOW TO PLAYERS?
     IT SURE SEEMS TO DO GREAT THINGS TO EARNINGS REPORTS!!!

     2.MORE ACTION ORIENTED OR ACTIVE GAMES
     MAYBE THERE IS A WAY TO SOMEHOW COMBINE THE PHYSICAL ACTIVITY OF, SAY, A
     DART OR SKEEBALL GAME IN COMBINATION WITH VIDEO...GOLF IS REALLY BECOMING
     A POPULAR SPORT OF THE MASSES, REMEMBER THE GOLF TRAINER?

     3.BAR GAMES:
     WE HAVE TALKED ABOUT IT BEFORE, BUT WE REALLY SHOULD CONSIDER DEVELOPING
     SOME ADULT ORIENTED PIECES...SOME SORT OF TRIVIA OR QUIZ GAME COULD BE
     SUCCESSFUL FOR A SYSTEM CONVERSION.

     4. SYSTEMIZING OLDER EQUIPMENT:
     IT SURE WORKED FOR NINTENDO, AND IT WOULD PROBABLY WORK WELL FOR US.
     SOME OF THE OLD CENTIPEDES WOULD MAKE A GREAT BASE FOR SYSTEM 1 AND WE
     COULD POSSIBLY THEN OFFER A SYSTEM 1 CENTIPEDE/MILLIPEDE KIT FOR THOSE
     WHO WOULD WANT A SYSTEM BUT DON'T WANT TO GET RID OF THEIR CENTIPEDES.


THAT'S ALL FOLKS...UNTIL NEXT TIME,

DT