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- Electronic News, Dec 12, 1983 v29 n1475 p86
-
-
- Milton Bradley Scraps Voice Module. M. Halper.
-
- Abstract: Milton Bradley has decided not to market a voice recognition device for
- the Texas Instruments 99-4A home computer. Earlier in 1983 Milton Bradley filed a
- $43 million law suit against Atari for failing to honor an agreement for the purchase
- of the same device. Sales for the first nine months of 1983 were $242 million with
- earnings of $42,000. The low earnings were caused by the problems Milton Bradley had
- with the voice module.
-
- Full Text: COPYRIGHT Electronic News Publishing Corporation 1983
-
- SPRINGFIELD, Mass. -- Milton Bradley has abandoned hopes of selling a voice
- recognition module into the TI 99/4A home computer aftermarket, after shutting down
- production of the device and informing General Instrument that it no longer needs
- the custom speech chip GI had been supplying.
-
- It could not be learned how Milton Bradley and GI resolved their supply agreement,
- or whether Milton Bradley returned any excess inventory to GI. There had been
- conjecture that Milton Bradley would continue to make the voice product, despite
- TI's withdrawal from the home computer market, and target sales at an installed
- 99/4A base through its own marketing network. Under an earlier agreement
- (EN, Dec. 27, 1982), TI was to market the device, but its exit from the home computer
- business led to the collapse of those plans, and Milton Bradley officials decided the
- marketing chore was too large to handle on their own. The termination of the TI
- business was the second time this year Milton Bradley has lost a major commitment for
- the voice device, and came as a direct blow to its electronics expansion tack of
- piggybacking onto more expansive marketing networks operated by other consumer
- electronics firms.
-
- $43M Suit
- Earlier this year, Milton Bradley filed a $43 million breach of contract suit
- against Atari, alleging that Atari had failed to fulfill an agreement to purchase the
- voice module for the Atari 2600 and 5200 video game (EN, Aug. 8). The company's
- hardship with the voice module are said to have played a key role in depressing
- corporate earnings this year. Through the nine months that ended on Sept. 30, Milton
- Bradley earned $42,000 on sales of $242.876 million, compared with earnings and
- sales, respectively, of $15.468 million and $250.849 million in the like period last
- year. The voice module and accompanying software allow the 99/4A user to give
- spoken commands to computer and video game programs. Its hardware includes a
- 64-position key-pad with a different overlay for each game cartridge, a three-axis
- joystick, and a headset microphone. The TI/Milton Bradley agreement called for Milton
- Bradley to make the hardware and develop the software, and for TI to make software.
- All products were to bear both company's logos, and were to be available in mid-year
- 1983. After several delays, product began trickling out to the market recently.
- A Milton Bradley spokesman confirmed "We stopped production immediately after TI's
- announcement." He said the company had started production two weeks before learning
- of TI's exit, and declined to quantify how many units it shipped to TI. One analyst
- said early plans called for Milton Bradley to ship 170,000 units to TI in 1983. A TI
- spokesman said the company purchased "a small number" of voice modules. Both
- companies said last week that they have reached a termination agreement, but declined
- to disclose financial terms, or elaborate on whether TI is compensating Milton
- Bradley for product committed to but never purchased.
-
- Mutual Satisfaction
- A Milton Bradley spokesman said last week "We believe we reached a settlement to the
- satisfaction of everybody," and TI noted the agreement with Milton Bradley "has been
- terminated to the mutual satisfaction of both companies." The Milton Bradley
- spokesman declined to discuss plans for the disposal of inventory, but TI said the
- hardware "will be principally disposed of by Milton Bradley and TI internally
- through employe sales." In the software area, the spokesman said "Software already
- in production will be completed." He added Milton Bradley developed 10 titles for use
- with the system, and of those, three could be used only in conjunction with it. Those
- three, he said, "will also be disposed of through employe sales by both companies."
- The remaining seven titles, which can be used with the voice system but do not rely
- on it, will be offered "both internally and through retail channels until current
- inventories are sold," he said. The TI spokesman also confirmed that both TI and
- Milton Bradley are "discussing a licensing arrangement for the software," but did not
- indicate which companies are considered candidates to license the Milton Bradley
- -developed software. Meanwhile, Milton Bradley's suit against Atari still is pending
- in U.S. District Court here, where it is not expected to be heard by the end of the
- year.
-
- Joint Efforts
- Milton Bradley's interest in making a voice module add-on began, sources said, after
- it scrapped plans to market a home computer that it had brought through the
- development stages last year. The company decided against the home computer, it was
- said, as home computer prices began falling near and under $200. At that time,
- Milton Bradley decided to expand in the home computer market via joint efforts for
- marketing peripherals, such as the voice module. Ironically, the firm's interest in
- home computers began about 5 years ago, when it reportedly worked with TI on the
- development of the 99/4A home computer. That joint effort ended when the two
- companies could not agree on pricing. Milton Bradley's remaining activities in the
- home electronics area include the Vectrex video game operation (see related story,
- this page) and electronic games and toys, including Electronic Chess, Electronic
- Stratego, Dark Tower, Alfi II, Big Trek, Electronic Battleship, Simon, and Pocket
- Simon.
-
- Electronic News, Dec 12, 1983 v29 n1475 p86
- Milton Bradley Scraps Voice Module. M. Halper. Abstract: Milton Bradley has decided
- not to market a voice recognition device for the Texas Instruments 99-4A home
- computer. Earlier in 1983 Milton Bradley filed a $43 million law suit against Atari
- for failing to honor an agreement for the purchase of the same device. Sales for the
- first nine months of 1983 were $242 million with earnings of $42,000. The low earnings
- were caused by the problems Milton Bradley had with the voice module.
-
- Full Text: COPYRIGHT Electronic News Publishing Corporation 1983
-