uace0@uhnix2.UUCP (08/29/87)
Well, this is indeed interesting what has transpired over the past week. As I understand it, Atari bought out the outstanding shares of Federated stock, which gives them approximately 30% controlling interest. Now to speculate, is this good or is this bad? Will Atari be like ComputerLand and have a very successful marketing chain??? Or will Atari have thrown good money after bad? Let us examine a few facts: 1) Before Uncle Jack bought Atari, the corporation was on the verge of bankruptcy. They couldn't afford to buy a stick of gum let alone a portion of a chain of stores. 2) Atari in Europe? Before: NO; Now: it is a very serious business machine. From the quality of software which I have seen coming from the European market, it is obvious that at least some of the Europeans take the STs to be more of a machine than here in the states. 3) Before: Waste, waste, waste. Now: Lean, mean, fighting machine. The company is efficient in what it does (even if Uncle Jack is very tight with the money he spends - example: no CD ROMs because he can't get his price). This means the Atari passes on the savings to it's customers (although sometimes the quality may be on the edge, but generally it all works. I have a REV A board and have never had troubles with it.. now my REV C...) 4) Jack is shrewd. Personally, my great-grandfather was a victim of WWII, he was in Auswitz (forgive spelling if incorrect), and I know that he was a survivor because of this. Jack, too, is a survivor, and I believe that he is not about to do something which will jeapordize his future (he got this far didn't he). So now we have this deal with Federated. Is it good or is it bad. No one except Uncle Jack and his family and advisors know what is going to be done. We can only speculate that from his past record (made Commodore, rebuilt Atari) that he is a winner, and he does things that will be successful. So, we know at least one thing is for certain: Uncle Jack sees this move as a way to make more money for him and his siblings. One point for the Tramiels. Now for the consumer, and the retail merchant. This is a toss up. The consumer thus far has gotten a good machine for a very reasonable price. The MEGAs are here and a bit more expensive (but they are nicer machines, and a bit more complete). So, the consumer must pay more for more machine. This is reasonable. Still, the consumer still is getting a good deal for his money. And if we use the age old standard of measuring bytes per dollar, the new MEGAs are coming in at a much cheaper price per K than any other machine. So in this light the consumer still gets more (even though (s)he pays more). The retail merchant. Bye-Bye. Jack has seen cut-throat prices on the STs. Mail order this, mail order that. Is the Apple Mac sold mail order? Do I as a professional want to buy a mail order computer. I think not. So now Uncle Jack says, "You must have an on site technician and an outside sales rep to sell the MEGAs." Ahhhh, Uncle Jack is trying to save his profit margin (shrewd). So he goes out and purchases a retail outlet (even if Fred Rated is their spokesman). Can Jack now change the image of the Atari machines buy specifying how they are sold and creating a specific environment for them to be sold in. I can only suggest that other retail chains have changed their images successfully (take J.C. Penney, for example), so maybe Jack can too. As for the independent computer store that we as Atarians have always revelled in: I can only say, "May the SCHWARTZ be with you." If Atari wants to save its butt, someone will have to be the fall-guy. Personally, I would hate to see the store in town here (Computers-to-Grow) which has been struggling but has been open for about 4-5 years now (and faithfully Atari- they have done alot for the Atari community and user support groups) close shop. This would be a detriment to people out there who desperately need help iwth the computer, and need help from people who like the machines and company (usually) and provide excellent user support. I have seen the guys a CTG spend (on more than one occasion) 2-4 hours with a customer explaining the machine, providing answers to questions. Not to mention that they provided about 500 t-shirts for the computer fair we had on campus last year, plus about half-a-dozen machines for it too. I would hate to see an excellent source of help go out the window. (Sorry for that... I'm off my soapbox, now) I am in no way affiliate with any computer store or CTG. I just know that a retail chain can't provide support (which Atari **NEEDS** to have) like the independent. --------------- The Bottom Line ----------------- Atari is going to make money with this deal (although at least 4 Federated stores have closed down here in Houston in the past year- they expanded too quickly in my opinion: greed), but at who's expense. Not mine, that's for certain. I am fortunate in that I know what I am doing with computers, I have the knowledge to make any system what I need it to be. If the MEGA is what I need, then I will get it, and probably at a good price too. I'm just glad I didn't finance Atari with my investments by opening up a business to sell only Atari computers. The winner: ATARI for sure. Runner up: The consumer (good prices are certain, but user support (???)) Last place: the independent computer store in town. Find a way to get rid of mail order, but not the local stores, different than what Jack is doing and you will have a successful computer company too. (Sorry this was so long) - Mike Vederman -- #-----------------------------------------------------# University (of Houston) # It is morally wrong to let a sucker keep his money. # Atari Computer #-----------------------------------------------------# Enthusiasts (UACE) Use Atarinet: for help, interactively send a message to UH-INFO@UHUPVM1
cas@dasys1.UUCP (Charles A. Schwartz) (09/02/87)
As a computer consumer, and the proud owner of an Atari ST, I would like
to withhold my opinion as to whether or not Atari buying the Federated
chain was a good move. I would like to say that being in New York, finding
well stocked Atari stores are few and far between. There are a few stores
here and there that stock Atari computer hardware and several of the more
popular titles. Unfortunately there are only one or two stores in my area
that stock a relatively full line (I only know of two such stores and they
are at least an hour away by car). More and more of my purchases are having
to be done by mail order. The point behind my message is that Atari is
obviously going to stock the Federated store chains preferrentially with
their products. What will happen to the supply of Atari computer equipment
(both hardware and software) in other areas of the country?
Charles Schwartz {allegra,philabs,cmcl2}!phri\
Big Electric Cat Public Unix {bellcore,cmcl2}!cucard!dasys1!cas
New York, NY, USA CIS: 73765,416 DELPHI: CSCHWARTZ
Genie: XPC14910
"Beam me up Scotty!"