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Technology Stocks : C-Cube -- Ignore unavailable to you. Want to Upgrade?

To: Ian deSouza who wrote (30169)	3/3/1998 12:33:00 PM
From: Don Dorsey	Respond to of 50808

Creative Hopes to Dominate DVD-ROM Sales ByÿRoger C. Lanctot New York 11:00 a.m. EST Tues., March 3, 1998 After virtually taking over the DVD-ROM market with the launch of its $379 DVD-Encore second-generation DVD-ROM drive late last year, Creative Labs hopes to dominate the category with two new introductions next week. Creative will bring a $149.99 street price DVD-ROM drive to the retail market and offer branded DVD-ROM upgrade products for the systems integrator market as well. The DVD-Encore drive has been retailing for $299.99 since January, following CompUSA's unilateral price cut advertised in December preprinted circulars. Creative was the first company to bring a second-generation DVD-ROM drive to market and the new products will effectively halve the minimum retail price consumers will pay to obtain them. The move comes as competitors such as Diamond Multimedia are preparing to launch their own second-generation DVD-ROM kits for the retail market this month. Retailers were excited by the announcement but expressed concern regarding the lack of DVD-ROM software applications in stores. Some said they would delay their introduction of the new low-cost drive until they could sell-through more of their DVD-Encore product inventory. A Creative spokesman said it is likely that the DVD-Encore kit will coexist in stores with the DVD-ROM drive-only product, since the DVD-Encore product includes an MPEG-2 video card - which justifies the higher price. Creative will be offering six different DVD upgrade products, including those for system integrators, in its new Creative Components line, which will be formally announced on Monday, March 9. Further details will be available at launch, the company said.