To: Richard Haugland who wrote (12039 ) 8/16/1998 4:29:00 PM From: Richard Haugland Respond to of 13925
Very positive article on SoundBlaster Livebusiness-times.asia1.com.sg (reference compliments of Marc Chatman on APM board) Some abstracts:To give shoppers a live experience, Creative is spending big bucks to build "monster kiosks" with multiple speakers and hot games. It will put these kiosks in shopping malls and computer shops worldwide. In Europe, cinema and even MTV ads are being planned. The company is aiming for one billion ad imprints, with 450 million slated for the US alone in the next two weeks. Creative is also trying to use the Internet, a relatively new medium, to stir up excitement; it hopes diehard gamers will help spread the word on the Net. More importantly, Creative has the brand name, cash and marketing muscle to drive developers to write software for its Environmental Audio platform. Games bearing Creative's Environmental Audio logo -- akin to the "Intel Inside" campaign -- will be available by Christmas. On the plus side, Sound Blaster Live! is probably the highest-margin product in the company's history. The company has long written off the technology costs associated with the card's core sound chip (developed by professional audio subsidiary E-Mu Systems), so what is left is pure manufacturing cost. Comfortable margin: The card basically has a sound chip and a bunch of low-cost components. The company's manufacturing cost is now on par or cheaper than comparable Taiwanese manufacturers, estimated one official. Even if Creative were to drop Sound Blaster Live!'s price sharply to accommodate PC makers' demands, it would make money on it. As it is, at its current price, analysts estimate that Creative is making a comfortable over-50 per cent gross margin.