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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: rel4490 who wrote (6721)	9/20/1999 9:18:00 PM
From: Mike Buckley	Read Replies (2) \| Respond to of 54805

rel, The question I am trying to answer is in fact whether or not GMST has the proprietary technology necessary for a gorilla game to develop. Stew thinks they do. From your previous replies, I assume you think so also. Yep. This means that you are both playing down the importance of the pending litigation, viewing it as only a step in the negotiating process for a license Yes, but more important is that half the industry adopters are waiting until this thing gets settled, just as so many CDMA adopters were waiting to see how the Qualcomm/Ericsson dispute played out. As far a switching costs are concerned, they may be small from the consumer's perspective, i.e., the cost of a TV or VCR. True, but the switching cost that is important is the cost for those supplying product to the consumers. I probably don't know enough about Gemstar's or TV Guide's switching costs, but I doubt that it's particularly high compared to those of other gorilla games. But it's hardly a low switching cost especially in the arena of consumer electronics manufacturers where the cost of creating brand identity is immense and not something to be switching on a whim. --Mike Buckley