October 19, 1998, Issue: 223 Section: Opinion/Editorial ------------------------------------------------------------------------ Letters to the Editor
To the Editor: Regarding your story, "Suppliers Rewrite Plan for Rewritable DVD" (CRW, Oct. 12), let me offer some more information.
LaCie (the company for which I work, and a supplier of external hard drives, removable storage and CD-R/CD-RW), was an early OEM partner of Panasonic/Matsushita. We have been selling (and delivering) DVD-RAM solutions for the Macintosh and PC since July.
While Panasonic has been keeping the bulk of DVD-RAM product for the Japanese market (where it is selling very well at retail), about 10% of its factory output capability is trickling out to the United States and Europe through manufacturers such as LaCie (and Creative, Nakamichi and others). While we are getting a large allocation of product (to the exclusion of Hi-Val for now), there is simply not enough to satisfy demand. We've been able to move a lot of product in North America and in Europe. We feel that Panasonic is very supportive of the product (as are Toshiba and Hitachi), but is being very conservative about ramping up production until they are sure all issues have been addressed, including DVD-ROM read compatibility, media availability, commitment by desktop OEMs and price pressure caused by CD-R and CD-RW alternatives.
With Matsushita, Hitachi and Toshiba controlling much of the DVD-ROM market for desktop PCs, I think we will see a bigger push for DVD-RAM once compatible DVD-ROM drives ship in volume. Note that Matsushita completed its chip set this past summer, and is now shipping compatible DVD-ROM drives to OEMs this fall with DVD-RAM read capability.
LaCie is focusing on business and graphics professionals with the DVD-RAM product. They are using it primarily as a low-cost, high capacity, high-reliability backup and archival device. Use as a CD-ROM or DVD-ROM drive is secondary. DVD-RAM will quickly replace magneto-optic, Jaz and SyQuest products in these kinds of applications, due to its better price/
performance, and reliability.
Will DVD-RAM appear in retail anytime soon? Probably not for another six to nine months.
Mike Mihalik
Vice President, Engineering,
LaCie, Hillsboro, Ore.
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