The following is a transcribed version of a brochure included in Atari's press kit for Fall Comdex '92. It outlines the general direction that Atari may take with marketing for the Falcon030, and provides some insight into the future-view of Atari Corporation. ========================================================================== Personal Integrated Media ========================= An Atari Perspective -------------------- For years now, industry pundits have talked about multimedia for the masses: outrageously describing Star Trek-like voice interfaces, wall-size computer screens with sparkling video and instant manipulation of graphics and video. But only now, with the advent of personal integrated media, have predictions begun to sound plausible for consumers at large. Personal integrated media is accessible computing power that will give individuals the ability to manipulate time-based data; video, audio, text, animation and telecommunications. We'll be able to talk to your computers instead of only typing; listen instead of reading, watch animation and video instead of seeing stagnant images. Personal integrated media is an evolutionary step beyond multimedia; it's specifically designed for use by the consumer, not just the businessperson, providing an easy-to-use, quality system at an affordable price. A personal integrated media system can be defined by the following criteria: - The reproduction of photographic-quality images. Consumers in the United States spend more than 1500 hours a year watching television, home videos and movies. - High-quality audio reproduction, equal to or better than compact discs and digital audio tape. U.S. consumers spend 1300 hours a year listening to the radio and recorded music and can easily discern the difference between tinny low quality sound and high quality audio. - Media-ready for immediate gratification. A personal integrated media system must come ready-to-use and be easy-to-use. Users should not be expected or required to purchase additional hardware, reconfigure equipment or write intricate software programs before being able to accomplish their personal integrated media goal. - Value. Whereas multimedia appealed to business interests that could invest large amounts of money for equipment, personal integrated media systems must provide a multitude of features for a reasonable cost of $1,000 or less. Each of these quality and value standards is easily recognized and inherently understood by users. These are areas in which the consumer market is well experienced; they will not adopt a new technology that does not meet, or improve upon, their existing standards. Systems that fail to meet these criteria will not be accepted by consumers. The Evolution of Personal Integrated Media ------------------------------------------ Disparate technological developments over the last two decades are merging into powerful, and soon to be invaluable tools for personal productivity. Computers, consumer electronics and telecommunications are blending together and will subtly begin changing our personal lives, much as these technologies have already affected business. Just as it would be difficult to imagine living without automobiles and shopping centers, the next generation of computing will help define our perspective, our leisure and even our thinking. The change is fueled by our passion for technological tools and entertainment, and our comfort with new forms of media. According to the Electronics Industry Association, 98% of U.S. households have televisions and radios, and more than 90% of all televisions purchased have remote controls. 94% have audio systems, 77% have videocassette recorders, 58% are wired for cable television and view an average of 60 different channels, 35% have compact disc players and video games, and 33% have home computers. Add to that the answering machines, fax machines and microwave ovens and the result is a population comfortable, proficient and dependent on new technology. The changes have been labeled by different names over time. The combination of technologies, all under the control of a computer, has most often been referred to by the catch-all phrase multimedia, and the projections for the industry are staggering. Currently considered a $701 million business, Grassroots Research of San Francisco, California, expects the U.S. multimedia market to grow to $6.8 billion by 1995. Everyone seems to be joining the multimedia fray: Microsoft established a minimum standard for multimedia hardware known as Multimedia Personal Computing (MPC). IBM considered Microsoft's standard as "dangerously low" and introduced its own, "Ultimedia." Apple is also fighting for a piece of the lucrative multimedia pie, writing its own software standard known as QuickTime. But with so many divergent definitions, what is multimedia? Is it really the logical conclusion of the merger of these technologies? Tim Bajarin, executive vice president of Creative Strategies Research International in Santa Clara, California, recently said, "My vision of multimedia computing has been greatly expanded. While it will be a technology that will be perfected in the business climate of today, and used [there] first, I now also believe that it will eventually become the revolutionary way people all over the world will learn and become equipped to handle the rapid information and technological changes of the future." The expansion of multimedia is the result of numerous trends: - As the cost of specialized computer equipment decreases, the number and type of interested users increases. - Application software is evolving. More and more of it can be used in either a passive or interactive fashion, broadening its consumption and purpose. - The general public is increasing its "electronic interactivity literacy." The growth in electronic remote control devices, video games and keyboards attests to the population's expanding comfort level. - Consumer capacity for new media is continuing to increase. According to an April 16, 1992, report by Volpe, Welty & Company, "As the popularity of relative new media, such as video games, cable and home video have soared, the use of traditional media such as television, radio and newspaper has declined only slightly." The Personal Integrated Media Arena ----------------------------------- Personal integrated media is the logical evolution of multimedia. Just as the printing press made written material generally available, personal integrated media will make today's information widely available. Not only will individuals be able to freely -- and interactively -- manipulate traditional computer data such as text and graphics, they'll also be able to manipulate information dependent on synchronization: time-based data such as video, audio, animation and telecommunications. And those capabilities will all be integrated into a single, ready-to-use unit. We'll be able to create our own home videos integrated with text and music. We'll be able to record ourselves singing the lead vocals to our favorite rock 'n' roll classic with the original musicians playing along -- or we'll add a timpani solo to our favorite opera. We'll be able to create performance art in our living rooms, narrate and score the family photo album, create a visual family tree, keep a video journal of the places we've visited, play an adventure game set in the house which we grew up. The opportunities for personal expression, entertainment and education are unlimited. Daratech, a market research firm in Cambridge, Massachusetts, confirms this trend, predicting that by 1996, 57% of the U.S. multimedia market's $12.4 billion revenue will be generated by general consumer users. The Impact of Personal Integrated Media --------------------------------------- William B. Welty, of Volpe, Welty & Company, San Francisco, California, cited an ideal example of the use of personal integrated media. "My father died before my sons were old enough to know him well. I was saddened by his passing but equally sad that an intergenerational passing of knowledge, wisdom and information about an earlier way of life did not occur. I listened to his stories; I heard about the purchase of his first new car, but my sons never did. "But maybe they can now. I have a hundred or so black and white photographs of him at various ages, in various locations. Here's what I'd like to do. Scan in an image of my father at age eighteen. Colorize the image. Scan in a photograph of that 1940 Mercury convertible. He said he'd put eight coats of hand-rubbed red lacquer on that car. Colorize the image. Combine the images of my father and his car. Use a software package to animate and coordinate his facial movements and type in the story I remember him telling me about that car and about how great it felt to drive it with the top down on a warm evening in June. Play the script. The typing becomes a voice and the picture is now a full-color, full-motion photorealistic image speaking the words I've remembered. No, the voice isn't quite the right pitch or timbre, so I alter it. "There, that's it. Hand the optical disc to my son. He's eighteen now; Maybe there's something he and his grandfather can have in common. Maybe there are lessons my son can learn from his grandfather. Maybe we can alter our place in time and space." But what kind of equipment will Welty need? Nothing available today can accomplish the task, but the issues are beginning to be addressed. And as the market matures, consumer demand will drive development even further. Currently the market is filled with multimedia machines designed and priced for business users -- from IBM's Ultimedia at approximately $8500 to Tandy's 386 machine at $3999, Acer's telephone equipped PAC for $2695 and Apple's 68030-based LCII with video upgrade for $1898. For personal integrated media to become ubiquitous and make interactive information widely available to the public, the entry price must be much lower, and he features must be both relevant and abundant. "People are not going to spend $2500 to play games that look and sound better on a $200 Nintendo," said Peter Blakeney of IBM. Some low-cost, low-feature machines are available. The Amiga 500 is a bare bones 68000-based machine available for less than $700. While it will allow users to perform rudimentary video manipulation, it has limited speed and color capability, and poor sound quality. Commodore has introduced a home multimedia player, the Commodore Dynamic Total Vision (CDTV). Available for $799, the system is essentially an Amiga with a built-in compact disc player. Sales of the CDTV have been sluggish, largely due to the Amiga's limitations. Some new entries claim to be multimedia but don't necessarily deliver the capabilities. Sega's new add-on for its game system features a compact disc player but doesn't provide users with enough flexibility or an accessible central processor. Again, what the market needs is an affordable machine with high-functionality: a machine designed for personal integrated media that provides realistic video, high quality audio, simple operation and interesting personal applications. Atari Corporation Introduces a Personal Integrated Media Machine ---------------------------------------------------------------- Atari Corporation has introduced the first computer designed for personal integrated media; we call it the Atari Falcon030 tm. Incorporating the same technical philosophy that makes Atari one of the best selling desktop-publishing computers in Germany, the new Atari Falcon030 provides personal integrated media capabilities at a reasonable price. The Atari Falcon030 is an easy-to-use and easy-to-buy system. I incorporates technical advances -- usually reserved for expensive professional film and video production workstations -- as standard features. Based on a 16 MHz 68030 processor, the Atari Falcon030 incorporates a specialized 32 MHz digital signal processing (DSP) chip for quick manipulation of sound and video. DSP augments the power of the central processor and independently completes a variety of asks without slowing down the system. The CPU is left free to perform those tasks it does best. DSP is especially valuable for sound manipulation. Capabilities include graphic equalization, channel manipulation, surround sound and special effects such as echo, flange, chorus and reverberation. In additional, DSP makes voice recognition for input/output possible. Another Atari Falcon030 advantage is its Direct Memory Access (DMA). A standard feature of Atari systems, DMA speeds access to peripherals including hard disk drives, compact disc players and laser printers. In addition, Atari's proprietary memory control system wisely manages video functions. Other vendors require dedicated video RAM, usually stored on an additional video card, to quickly transfer display-related information. The Atari accelerates update and manipulation instructions without any expensive add-ins. Other features giving Atari Falcon030 users immediate access to personal integrated media capabilities include: - Atari's graphic environment manager (GEM) and built-in graphics co-processor - A true color mode that includes more than 65,000 colors, twice the capability of the Apple Macintosh LCII - The industry's only standard-equipped MIDI input/output ports - 16-bit stereo sound-input and output -- for the highest quality reproduction available at sample rates up to 50 kHz. - External video sync for high quality genlocking - Overlay mode for easy video titling and special effects - Software applications for personal integrated media applications such as desktop video production, animation, music and entertainment No other computer can provide this level of performance and personal integrated media capabilities for a more economical price. Atari Falcon030 Personal Integrated Media Applications ------------------------------------------------------ There are as many types of applications for personal integrated media as there are users: everything from individual video productions such as the one foreseen by Bill Welty for his son, to in-depth training programs that will help increase literacy worldwide. Some examples of personal integrated media applications already available or under development for the Atari Falcon030 are described within the following key categories. Desktop Video ------------- Professional quality video and animation production has been inaccessible to the mainstream personal computer user because of prohibitive costs and intricate equipment. Now, the Atari Falcon030's specialized production features, including superior display technology -- thanks to the DSP and graphics co-processor -- make these production capabilities immediately available. Use desktop video to make that childhood dream of becoming a professional ball player come true. With personal integrated media equipment, users can change their softball team's home video into a major league sporting event. They can add color commentary and a play-by-play, create team graphics, a scoreboard, individual stats and league standards. They can even break away for station identification and show beer, sneaker and car commercials. Animation --------- "Animation is especially good at grabbing attention, condensing information that occurs over time, engaging the emotions, simplifying the learning process, and allowing viewers to digest complex material quickly," wrote Anita Amirrezvani, in the San Francisco Examiner. Now users can create their own cartoon messages. Imagine sending a cartoon instead of a card: animate birthday, holiday and special occasion greetings. Or animate a favorite cartoon strip or comic book to bring superheroes to life. Entertain friends and family, or teach a cub scout troop about the importance of teamwork with a custom cartoon made just for them. Desktop Photo Library --------------------- Create photo albums unlike any you've seen before with an Atari Falcon030 and Kodak's Photo-CD Access System technology. By transferring personal photos to digital compact disc photos, users can view, sort and manipulate photographs, even move a picture of themselves in one place, to a completely different photograph. More traditional users can add titles or verbal descriptions to vacation photos so they don't forget where or when the photos were taken, or what they were thinking about when they looked into the camera. Presentations ------------- Presentation tools have evolved from simple stark visuals to complex, multiple-input components requiring central coordination. the Atari Falcon030 makes it possible to author and coordinate exciting presentations at a reasonable cost. Even basic databases can become sophisticated presentations with the addition of hypertext documents, interactive screens and more. Combine data and text with graphics, animation and sound elements into a storybook presentation for children. Users as young as three can play along, clicking on pictures that lead to hidden delights, and learning to identify sounds, objects and works. Children can even use the Atari Falcon030 to create their own presentations for school projects. Telecommunications ------------------ Voice and data communications have been revolutionized in the last decade and more changes are on the way. The Atari Falcon030 can make new technology available to users, immediately, from graphically enhanced bulletin-board communications to interactive video phone systems. Users can communicate with other personal integrated media users around the globe, not only through unformatted type, but with complete graphic pictures, full-motion video and crystal clear sound. The Atari Falcon030 makes the video phone an affordable reality. Music/Audio ----------- Atari is the only commercially-available MIDI-ready computer; it has already helped revolutionize the music industry and has been endorsed by many artists including Mick Fleetwood and Madonna. The Atari Falcon030 makes professional-level recording and manipulation even more accessible to the general public, eliminating the need for expensive additional hardware. In their own homes, users can record music based on classics or original compositions. They can add special effects previously found only in expensive machines: graphic equalization, surround sound, harmonizing, reverberation and echo. Users can remove the lead vocals and create their own Karaoke machine and those wanting to learn more about music can run programs that not only explain music theory, but let them hear the differences and experiment on their own. The Growth of Personal Integrated Media --------------------------------------- There's no doubt that the impact of personal integrated media in our everyday lives will continue to increase. Modern society is quick to embrace useful tools: it took 20 years for one million people to have telephones in their homes, but only two years for one million people to own cellular telephones. The technologies encompassed by the umbrella phrase "multimedia" will continue to develop and affect our business lives. Expensive, high-end systems will continue to be needed for advanced film and video production, as well as new business applications. But personal integrated media will also grow, providing users with useful and ingenious ways to improve their daily lives. However, for mass acceptance, personal integrated media systems will need to provide the basic requirements outlined in the beginning of this report: - Photographic-quality images - High quality audio reproductions - Ready and easy-to-use for immediate gratification - Interesting, easy-to-use software applications for personal use - Value for the consumer's money The Atari Falcon030 is the first entry that meets these criteria. ### Copyright 1992 Atari Corporation. All rights reserved. All other mentioned trademarks and registered trademarks belong to their respective owners.