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Subject: Re: Another high profile company goes out

Author: Terry McCracken

Date: 13:41:54 05/13/01

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On May 13, 2001 at 16:04:15, Fernando Villegas wrote:

>This industry still is, was and will be trapped in the same structural
>weakneses:
>a) a tiny professional market and a moderate "mass" market disputed by too many
>companies for the money that can be got.
>B) margins of profit going down due to technological development. In the 80's
>you could ask hundreds of dollars for a plastic piece of junk made in china
>encassing a processor the size of a nail. Cost: 25 dollars: Price: 150 dollars.
>Now you can ask perhaps 50 bucks for a CD that cost maybe 10 or 15 to produce,
>all included. Absolute and percentual margins going down...
>C) plastic shit made in China could not be copied as CD are.
>d) In old times there were perhaps 4 important players: Fidelity, Hagener,
>Saitek, Novag. Even so two of them went down very soon. Now you have dozens of
>commercial or non commercial players: every chess program that can be put in the
>Web is a competitor in his own; every programmer than can produce some Cd's is a
>player; every one can do that with almost no investment. And all goes for the
>same market.
>
>Survival in these conditions for a dedicated chess producing company is possible
>only -and even with lot of problems- with a moderately, familiar size and kind
>of company, Schroeder-style. Reduced cost, the owners makes his own programs,
>the wife of one of them sell the tickets, the nephew answer the phone, etc.
>
>The other way, the Millenium way, even the Chessbase way, is not viable in the
>long or even middle term shot. It is a matter of sheer numbers...
>Fernando

Hello Fernando,with generalities aside, which company are we referring to?
This post started with a "High Profile Company" gone into liquidation.

Terry



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