[comp.sys.atari.8bit] Financial aspects of new 8 bit software

daryl@ihlpe.ATT.COM (Daryl Monge) (12/13/88)

I am curious about the aspects of software production for the 8 bit 
ATARI machines.  As we all know, there is a considerable lack of new
software for the 8 bit machines.  However, there seems to be continued
new software for apple, C64, etc.

It seems to me that once a piece of software is developed for the other
6502 machines (especially the C64) that the conversion to the XL/XE
machines would be fairly easy.  Surely there are a lot of us professional
types that would be interested in doing something like that.

The question I do not know the answer to is what is the pay back for 
converted software?  How much would the original author get?  How much
would the converting author get?  How many copies would need to be sold
to at least break even for the effort?

There are a lot of 800's, XL's, XE's, and XE games out there.  I can't
believe the market is not there.

Daryl Monge				UUCP:	...!att!ihcae!daryl
AT&T					CIS:	72717,65
Bell Labs, Naperville, Ill		AT&T	312-979-3603

kimes@ihlpe.ATT.COM (Kit Kimes) (12/14/88)

> I am curious about the aspects of software production for the 8 bit 
> ATARI machines.  As we all know, there is a considerable lack of new
> software for the 8 bit machines.  However, there seems to be continued
> new software for apple, C64, etc.
> 
Survey's that I have seen show that a typical new computer owner purchases
a great percentage of his software in the first six months with dollar
spending dropping off dramatically after that.  This indicates that
there has to be a constant supply of new owners to really keep the software
market healthy.  Unfortunately, that isn't the case with Atari, except
for the XE Game System, and they don't seem to be buying many disk
drives.  This means the best market is for cartridge based software.
Atari seems to be the only company willing to supply this market and
even they have been slow to bring out promised cartridges.  I have been
waiting for six months for (to name a few) Crossbow, Crystal Castles and
Mean 18.  If anyone reading this is going to the Winter CES next month,
try to find out what happened to all the software and try to find out
what new software is promised in the next six months :-) .  I have
sent private mail to a couple of people at Atari, but never received
an answer.

> It seems to me that once a piece of software is developed for the other
> 6502 machines (especially the C64) that the conversion to the XL/XE
> machines would be fairly easy.  Surely there are a lot of us professional
> types that would be interested in doing something like that.
> 
If you want to take full advantage of the graphic capability of the
8bit (with the GTIA chip), there is a lot of work involved.  Many of the
people who know the 8bit best have moved on to the ST or Mac and seem
reluctant to spend their time on the 8bit Atari.  Word was that Origin
was looking for someone to do Ultima V for the 8bit but couldn't find
anyone.  They have now stated that they won't be doing an Atari 8bit
version.  

> The question I do not know the answer to is what is the pay back for 
> converted software?  How much would the original author get?  How much
> would the converting author get?  How many copies would need to be sold
> to at least break even for the effort?
> 
I think the pay for such a job is fairly low and is an upfront
pay with no royalities for the programmer doing the port.  It is the
software company that is taking the financial risk and few seem willing
to support the Atari 8bit.

> There are a lot of 800's, XL's, XE's, and XE games out there.  I can't
> believe the market is not there.
> 
I can state for sure that there is a market (although I don't know how
big).  I belong to a Users Group and we have a merchandiser at the meetings.
Many 8bitters are buying older software simply because there isn't anything
new to buy.  What is new (such as some of SSI's war simulations) isn't to
my liking.  What bothers me is why doesn't some company that does support
the Atari 8bit market bring in some European software.  There wouldn't be
any conversion work involved (unless it was written specifically for PAL
systems, as some is now) and the only risk would be the shelf space and
distribution work involved.  Thunder Mountain was supposed to bring in 
Winter Challenge for the Atari 8bit, but I have never been able to find it
and my source hasn't been able to get it from his distributor.  I have written
several letters to Access, Accolade, BroderBund and MicroProse with few
answers and what I got was pretty terse and unencouraging.

The only encouraging words I have heard came from ANTIC magazine who state
that they are trying to add to the 8bit catalog by bringing back more old
APX titles and adding some out of production commercial software that they
can find and being a distributor for small companies or individuals who
still support the Atari 8bit.  If you think this is a good idea, at least
drop them a note and thank them profusely.  And, by the way Daryl, they
have had more ACTION! typein software lately (as has Analog).  The January
issue has an 8bit shoppers guide with 8 pages of software/hardware and
the addresses of 65 companies that still support the 8bit computer (although
some of their offerings are getting pretty old now).  Some of the software
ANTIC is carrying in their catalog are TurboBase form MicroMiser, Super
3D Plotter II from Elfin Magic, some Infocom text games, StickyBear software
for kids, MIDI Track II and III from Hybrid Arts and AdvanBASIC along
with the modules such as the Optimizing Compiler for it.  I applaud
their efforts and hope they are successful.  It will only work if we
8bit users support them though.  They have also had some very good and
worthwhile software on their disks lately.  A subscription with disk is
only $59.95 ($5 per issue).  An excellent deal.  When my magazine sub
runs out, I am going to get the disk option.

					Kit Kimes  
					AT&T--Bell Laboratories
					...att!ihlpe!kimes

dlm@druhi.ATT.COM (Dan Moore) (12/15/88)

in article <3916@ihlpe.ATT.COM>, daryl@ihlpe.ATT.COM (Daryl Monge) says:
> It seems to me that once a piece of software is developed for the other
> 6502 machines (especially the C64) that the conversion to the XL/XE
> machines would be fairly easy.  Surely there are a lot of us professional
> types that would be interested in doing something like that.
> 
> The question I do not know the answer to is what is the pay back for 
> converted software?  How much would the original author get?  How much
> would the converting author get?  How many copies would need to be sold
> to at least break even for the effort?

	I'll try and answer this since I used to write programs
(SynFile+, PaperClip, BackTalk, and Sherlock) for the 8 bits.  I also
worked with a several people who were converting programs to/from the
Atari 8 bit systems. 

	As a general rule an author gets about a 10% to 20% royalty on
software he writes.  It varies based on market size, how well know the
author is, past hits, is it a game or an application, etc.  That royalty
is on the publisher's selling price which is usually about 45% to 55% of
the the retail price.  So a program that sells for $39.95 will wholesale
for about $19.98.  The author will get 10% of that or $2.00.  On a
conversion the original author and the conversion author will split the
10% royalty, usually 50-50.  So each will get about $1.00 per copy sold.

	Depending on the program being converted it will take between 3
and 9 months to convert a program from one 6502 machine to another. 
Applications usually can be converted fairly quickly since they don't
have any fancy graphics, games take longer due to the graphics.

	So to make a conversion worth doing the converting author must
be able to make 1/4th to 3/4ths of a years income off the conversion,
depending on the amount of work required.  If he expects to make $30,000
a year he needs to make $7,500 to $22,500 off that conversion.  So he,
the publisher and the original author all have to guess whether the
program will sell 7500 to 22500 copies on the Atari 8 bits.  Right now
there are *NO* 3rd party programs for the 8 bits that are selling that
well so it doesn't make much sense to port a program from a C64 or Apple
// to the Atari. 

	NOTE: I'm completely ignoring the publisher's expenses in the
above.  Ads cost about $5000 for a full page in 4 colors.  Boxes, disks,
labels, etc. are about $2.50 to $5.00 per copy (depending on how fancy).
So the publishers break even point may be higher or lower than the
converting author's break even point.

	Software publishers base a lot of their decisions on what
machines to support on the SPA's reporting of software sales figures. 
They break software sales down by machine and type of software
(business, games, etc.).  According to the SPA the top 4 software
markets are the IBM and clones, Macintosh, Apple // family, and the C64. 
All the other computers (Atari 8 bits, STs, CBM Amiga, Unix(tm) boxes,
etc.) are lumped together as "other".  The totals for "other" are less
than the totals for any of the top 4 markets.

	There just isn't a lot of money to be made writing or converting
program for the 8 bit systems.  As long as the market is small you are
going to see very few of the larger software publishers supporting the 8
bits.  Small publishers or publisher/authors will support the Atari 8
bits since they can get by on smaller margins (no support staff, etc.).



				Dan Moore
				AT&T Bell Labs
				Denver
				dlm@druhi.ATT.COM
					or
				dlm@druwy.ATT.COM

RCH@cup.portal.com (Ric C Helton) (12/16/88)

Kit & Daryl, plus anyone else who'd like to comment:

What and how big a role does software piracy play in the development and
distribution of Atari 8bit software?  What software protection schemes are
the current rage, and how does that affect the ability to successfully market
(and make money off of) Atari software?  I had heard that piracy was the prima
primary reason new titles were not being developed for the Atari 8bit.

Thanks for your replies!

-Ric
                   RCH@cup.portal.com
           RCH%cup.portal.com@sun.com
 ucbvax!sun!portal!cup.portal.com!RCH

Ordania-DM@cup.portal.com (Charles K Hughes) (12/17/88)

  Piracy is not the reason why new 8-bit titles haven't been released for the 
Atari 8-bit.  The reason is because it is not worth as much to CONVERT games 
to the Atari 8-bit.  Why should a game company use 3-6 months of it's 
programmers time to convert a game that will sell less copies than a new game 
for the C64 would sell?
  We Atari 8-bitters have to face the fact that until we get a larger user 
base willing to shell out $40 per game everytime a new game comes out, we
aren't going to get any new games (or applications for that matter).
  I do not often buy "converted" games, they are usually horrendous 
conversions.  The worst example I have seen (and bought) is the Superman game.
It looks nice on the C64 but is missing 1/2 the game on the Atari 8-bit.  The 
reason the programmers gave was because the Atari has less memory! (The game 
requires a 130xe/800xl.)  I dunno, maybe my math is wrong but I have checked 
out the 64 versus the 800xl and the 64 has less usable memory.  Of course, the
best conversions are great, anyone ever play the Ultima series?  The converter
for those games is known as Chuckles and he does a great job!
   This leads to a fact about software companies...they are out to make a fast
buck...and they don't care about the quality of their games in secondary 
markets.  Good examples of this are the Superman game above, OGRE (the 
ST/Amiga/IBM version allows you to play the OGRE versus the computer).  These 
are simply done for economic reasons, but of course, whenever a game or
application doesn't sell it is attributed to piracy.  The software companies 
may believe that but I think it has a little more to do with price versus 
quality.  As an example I wouldn't buy a $400 Lotus 123 spreadsheet when a $99
spreadsheet does everything Lotus does and more.  It is easier for software 
companies to scream "PIRACY" than to believe that they may have put out an 
inferior product.
   Comments from programmers/software companies welcome.


  Ordania-DM (Charles K Hughes)

kimes@ihlpe.ATT.COM (Kit Kimes) (12/19/88)

> Kit & Daryl, plus anyone else who'd like to comment:
> 
I'm hardly the one to ask since I'm not a developer, but I'll make some
comments anyway.  

> What and how big a role does software piracy play in the development and
> distribution of Atari 8bit software?  What software protection schemes are
> the current rage, and how does that affect the ability to successfully market
> (and make money off of) Atari software?  I had heard that piracy was the prima
> primary reason new titles were not being developed for the Atari 8bit.
> 
As a member of a User Group and a supporter of some local BBS's, I have to
say that the majority of currently active Atari 8bit users are extremely
conscience of the piracy problem.  NO pirated software is allowed or even
discussed at our User Group meetings.  This is not to say there are no pirates.
I don't know if there are or not.  However, I do know that there are local
boards that have some pirated software on them and, frankly, I'm glad that
they do.  If it weren't for this "service", some of the older software would
no longer be available.  Even some of the newer software that has been 
available in other countries but is not available in the US is available this
way.  Two that I have seen are Amourote (sp?) and Arkanoid.  Arkanoid is a
GREAT game and should be available here.  I would buy a copy, even though I
already have a copy.

Honestly, I don't see piracy as the major problem.  As has been stated before,
the number of sales determine whether a company supports a certain computer
or not.  Commodore and IBM piracy is rampant, but they have such a large
installed base and sell so much software that the companies put up with it
because they still make a handsome profit.  Atari software sales are way 
behind any other major brand computer.  Even Infocom sees that it isn't 
profitable to convert their games for the Atari 8bit computers and they are
mostly text adventures, with little worry about the graphics conversion
problems.  What's the answer?  I don't know for sure, but Atari has to be
in the forefront of the software battle.  They have stated that they will be
(at least, in cartridge based software), and that is a good commitment.  I
just haven't seen as much in the way of results as I would like.  The XE
game system is selling pretty good around here (thanks in part to Nintendo
selling out again this year).  Atari has to build on that momentum and
strike while the 'iron is hot' but releasing good quality software.  Kids
are fickled.  If their parents buy them an XE game system and they can't
get 'Super Mario Brothers' and good software like their friends have, they
will be back asking for a Nintendo for their birthday.  I know my son has
been after me for more than a year now, but I haven't caved in.


					Kit Kimes  
					AT&T--Bell Laboratories
					...att!ihlpe!kimes

RCH@cup.portal.com (Ric C Helton) (12/23/88)

In reference to the comment on users shelling out $40 for a new "game"
[can we stick the work "program" in here?  I still like app's, etc, better 
than games! ;-)]:  if the game or whatever is *WORTH* $40, I will gladly
buy it.  I will not, however, buy the converted "Superman" for $40.
You said so youself as to why not.....

CATCH 22:  We won't shell out the money on inferior software, but that
is what we will get until we start shelling out money..... And if we shell
out the dough on an inferior product, why should they improve it?

-Ric
RCH@cup.portal.com

RCH@cup.portal.com (Ric C Helton) (12/23/88)

An interesting point has been brought up... That of software no longer
offered by any company commercially.  What happens to these programs?
Obviously, the copyright doesn't just vanish...  Kit pointed out that some
pirate boards do a "service" by keeping older out-of-orint titles alive.
I am sure the copyright holder would have something to say about this.
Is there anything we can do to get out-out-print software placed in the
public domain, short of asking the author to tea? ;-) 

-Ric
RCH@cup.portal.com

Ordania-DM@cup.portal.com (Charles K Hughes) (12/25/88)

   
In reference to the comment on users shelling out $40 for a new "game"
[can we stick the work "program" in here?  I still like app's, etc, better 
than games! ;-)]:  if the game or whatever is *WORTH* $40, I will gladly
buy it.  I will not, however, buy the converted "Superman" for $40.
You said so youself as to why not.....

CATCH 22:  We won't shell out the money on inferior software, but that
is what we will get until we start shelling out money..... And if we shell
out the dough on an inferior product, why should they improve it?

-Ric
RCH@cup.portal.com

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
  All above written by RCH@cup.portal.com


   That is exactly the problem Ric, Atari users want quality at a reasonable 
price.  The Superman game cost $10 and I feel I was ripped off for $7 of that 
$10.  About the game/program switch, sorry but that is the way it looks right 
now.  Atari 8-bits and Commodore 64/128's have been relegated to the status of
video game machines.  I prefer applications but the best ones are appearing as
public domain or shareware which makes it even harder on software companies.  
Imagine SpartaDos being public domain, and Atari Dos being sold; why in the 
world would anyone BUY Atari Dos?  
  Some examples of high-quality programs in the 8bit world:
    Express 850
    DeTerm
    MyDos
    Super Arc/Unarc (Robert Puff)
    

  I know others but I can't think of them off the top of my head.
  If anyone has their own list of high-quality software, please post it.


   Ordania-DM@cup.portal.com
    (Charles Hughes)

RCH@cup.portal.com (Ric C Helton) (12/26/88)

Charles Hughes [Ordania-DM@cup.portal.com] listed a few programs that
are great code, and ShareWare, including 850 Express!, Super ARC/unARC, DeTerm
and a couple of others...  These are programs written virtually for
free by the authors, and placed in the public domain in-so-far as they
require only credit via copyright, and no actual retail price.  
It is (usually) very good code, better oft-times than the offerings
of Atari and its third-party software developers... A fact that early on
Atari tried to capitalize on (heavy relations with Users Groups)
and now seems to brush aside as trivial...

As a programmer who has written a few utilities, or mods to other programs,
please, do this as a New Year's Resolution:

   Look through your software libraries for really good "Public Domain" or
ShareWare programs, and select a couple that are your favorite, or that
you use the most, and send the author $5 or $10.  That will *not* set you
back much, and it could make the difference between whether we'll see any
new terminal programs like DeTerm [just dl'ed it a couple nights ago from
GEnie and *love it*, even more than 850 Express...] and Bob Puff's ARC
utilities....  I am not a big game player, though I am sure there are
not a small number of ShareWare games out... But please, if Atari and its
developers won't come out with new product, support those that do!

Merry Christmas, Happy Holidays, and make that resolution stick!  I am!

-Ric
                RCH@cup.portal.com
 ...!sun!portal!cup.portal.com!RCH

wilmott@topaz.rutgers.edu (Ray Wilmott) (12/29/88)

While on the subject of high quality public domain & shareware
programs for the 8bit, let's not forget:

Turbo-Basic & compiler package
CopyMate 4.4
OmniCom
Ace C Compiler
Alf
Diskcomm 3.2


....and all the others I can't recall at the moment.


				-Ray