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Subject: Re: Why are chess engines so expensive?

Author: Michael Ginat

Date: 08:18:05 05/12/99

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On May 12, 1999 at 03:33:35, Steve Maughan wrote:

>I disagree!  I think that for the effort that has gone into these engines they
>ALL represent great value.  I'd even go as far as saying that they are cheap!!
>
>Not so long ago (1990) you would have to pay £3000+ ($5000+) for the very top of
>the range Lyon 68030.  This did have an excellent deluxe sensor board (value
>~£600) but most of the value was taken up by the chess engine.  I remember
>almost salivating at the thought of a machine of this power.  Now all of the
>current crop of top programs would wipe the floor with the Lyon 68030 (even give
>equal hardware).  On top of this the modern programs also add even more value
>with additional analysis features. This represents real progress and I certainly
>don't begrudge the $50-$90 for each program.  The market for computer chess is
>certainly not big enough to warrant $15 per program.  If I were to segment the
>market for computer chess I would say there are three main segments;
>
>1) People who play chess occasionally but have no interest in competitive chess
>2) Competitive chess players who want to practice and analyse using a computer
>3) People who are interested in computer chess as a hobby
>
>The first segment is the mass-market segment dominated by ChessMaster.  What is
>needed in this segment is a big shiny box, snazzy graphics and possibly a chess
>tutor.  The last thing you need in this market is a strong engine.  The real key
>is most likely distribution.  The price will be the same as all of the other
>current PC games.
>
>The second segment is more complex.  People in this segment will most likely buy
>one or two programs that they will use on a day to day basis to help them
>prepare and analyse their matches.  I would imagine that this segment is
>concerned about usability and raw strength.  Since very few chess programs allow
>the user to ‘try before they buy’ price, advertising and PR will most likely
>influence the decision to purchase.  As a result I would imagine that Fritz
>dominates this section.
>
>The final section is simple.  This represents the relatively large group of
>people who are interested more in computer chess than chess itself.  They would
>be the type of person that would join a bulletin board such as CCC.  I would put
>myself in this class.  IMO this group buys almost everything that is released.
>Price is not the main influence in this group.  If computer chess is your hobby
>then it’s not too outrageous to spend $300-$700 a year to have all latest
>releases (about the same as membership to a golf club).  I imagine that this
>group represents most of the sales of programs such as Junior, HIARCS, Nimzo,
>MChess and Shredder.  There are approx. 4000 member of this forum - would we be
>too far out to say that many of these programs sell about 4000 copies a year?  I
>don’t know it’s just a guess.  This would also point to low price sensitivity,
>which in turn would indicate that from a business point of view the price of
>these programs should go up – not down.  Why am I advocating this you might ask?
> Well I think the way the industry is going at the moment everyone is trying to
>compete on price, with the result that the market is shrinking for each program.
> If this continues it will destroy the industry and I certainly don’t want that.
> IMO each programmer should take a step back and decide whom they are targeting.
>
>Anyway that my 2 penneth.  I’ve rambled on  - what do people think?
>
>Regards
>
>Steve Maughan

I totally agree with your ramblings Steve :)

regards,
Michael



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