Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Gateway (GTW) -- Ignore unavailable to you. Want to Upgrade?

To: Mike M2 who wrote (4914)	12/3/1997 4:49:00 PM
From: TLindt	Read Replies (1) \| Respond to of 8002

It is interesting to note that the price points being discussed are the....entry level system $1499....the Pentium II w/agp $1999...and the destination at $2499. So it tells me people still watch Tv. Robust Sales -2: PC Demand Seen Up At Several Price Points Gordon estimates that revenues for entertainment software developed for Sony Corp.'s (SNE) Playstation game system is likely to be twice last year's. He forecasts that sales of software for Nintendo Co.'s (NTDOY) Nintendo 64 game unit, which hasn't had as many titles as has the Playstation, should jump as much as 300%. Piper Jaffray Inc. analyst Anthony Gikas projected the installed base of Playstation units should jump to 20 million worldwide this year, up from 10.2 million last year. Some 75 Playstation titles are slated to ship this holiday season, according to Sony. The installed base of Nintendo 64 console units should grow to 11.5 million from 3 million. The sub-$1,000 computer is attractive to both first-time buyers and seasoned users who want a second or third computer. The computer market is offering a greater selection of products for all pocketbooks this year, from the low-end Pentium MMX systems and equivalents to Pentium 2 systems. Over the weekend, Gateway 2000 Inc. (GTW) saw strong demand at a number of price points, including $1,499, $1,999 and $2,499, the company said. "It was a real good weekend," said Jim Taylor, Gateway 2000's senior vice president of global marketing. "This is a very active Christmas for the first-time and experienced system buyers. There's a very strong growth in the new customer segment going on." Electronic Arts' Gordon believes that this year's customer base, both for both computers and for video-game consoles, includes more mass-market buyers than last year's. Advertising campaigns are no longer exclusively targeting hard-core gamers. Retailers, while they hope to woo new computer shoppers, are more conscious this year about the need to carefully manage their inventories and profit margins in the highly competitive category, said ABN Amro Chicago Corp. retail analyst Mark Mandel. Circuit City's gross margins have risen thanks to better management of computer inventory, Mandel said. Best Buy Co. (BBY) has cut the number of computer models it carries and given up using 0% financing enticements to chase after profitless sales, he said. Office products superstores - such as OfficeMax Inc. (OMX), Staples Inc. (SPLS), and Office Depot Inc. (ODP) - are emphasizing highly-profitable consumables such as computer supplies to offset low-margin PC sales, he added. "Dow Jones News Service" "Copyright(c) 1997, Dow Jones & Company, Inc."