/// CPU Status Report                     Late Breaking Industry-Wide News
    -----------------



                          ** Atari Sues Sega **

   Alledging that Sega's scrolling of displays in video games has viola-
ted Atari's patents, has caused Atari to file suit against Sega of Amer-
ica Inc. in U.S. District Court in San Francisco.  Atari also claimed in
the suit that Sega may have infringed two other Atari patents.

    Atari has been working on a Jaguar "interactive" video game system
that will be produced by International Business Machines Corp. and be
powered by 64-bit chip with over 16 million colors and produces three-
dimensional shapes. Most current video-game players and games work on
16-bit chips.

    Sega, which has been challenging Nintendo for supremacy in the $5
billion U.S. video-game market, is a subsidiary of Sega Enterprises
Ltd., Japan.  Analysts believe Sega has taken away considerable share
from Nintendo's lead due to its success with its 16- bit "Sonic the
Hedgehog" games.


                     ** Sony to Enter Game Market **

   Sony Corp. is forming a new company, Sony Computer Entertainment
Inc., to enter the video game machine market next month.

   Reports say the new firm, to be set up jointly with Sony Music Enter-
tainment (Japan) Inc., will unveil a next-generation game machine in
Japan at the end of next year.  The same reporst say, "The new machine
will offer three-dimensional computer graphics, using several powerful
microchips used in workstations," the wire service said, adding the
initial year sales target is set at a million units.


                     ** CD-ROM Software Sales Rise **

   Computergram Internationl's recent survey showed that CD-ROM software
sales in North America totaled around $56 million in the first half of
this year. The sales are estimated to represent 2.3 million disks.

   Content-based compact disks represented 40% of sales and games 30%.
"Presumably the balance is applications software and manuals as optical
disk becomes more popular for distribution," says the newsletter.


                 ** New Printers from Hewlett-Packard **

   Hewlett-Packard Co. has introduced the lowest-priced true 600-dots-
per-inch printers that it has ever offered: the $1,229 HP LaserJet 4P
and the $1,729 HP LaserJet 4MP.

   The LaserJet 4P and 4MP printers are designed for business and home-
office users who want a low-cost laser printer that produces high-
quality, professional-looking output on a wide variety of media sizes
and types. The LaserJet 4P and 4MP replace the LaserJet IIIP and IIIP
PostScript printers, and are compatible with other printers in the
LaserJet 4 series.

   HP also introduced its first ink-jet printers with desktop function-
ality, color support and portability: the $379 HP DeskJet 310 for
notebook PCs and the $379 HP DeskWriter 310 for Macintosh PowerBooks.


       ** Research Frontiers to Demostrate Flat-Screen Products **

   Officials with Research Frontiers Inc. say the firm has agreed to
acquire components for its active matrix flat-panel displays and will
demonstrate the products for prospective licensees next year. The firm
says its flat panels, for use in computers, televisions and other
electronic devices, will use its suspended particle displays, which will
compete against liquid crystal displays.


         ** North American Semiconductor Sales to Pass Japan's **

   According to the Semiconductor Industry Association, worldwide semi-
conductor shipments are expected to grow by 29% and reach $77.3 billion
this year. The North American market is expected to rise to 34.5% to
reach $24.8 billion in shipments this year, while the Japanese market,
is expected to rise to 22.3% in 1993 to $23.7 billion, for the first
time since 1985.

   By 1996, shipments in the North American market are expected to be
$32.5 billion, while Japan's market is expected to reach $31 billion.


                ** New Generation of Intel Flash Chips **

   A new generation of "flash memory" products designed for the mobile
market has been unveiled by Intel Corp., which says new products are
based on its fourth generation technology. They include the largest-
capacity flash memories now in production.  Intel said its new chips
include 16-bit and 32-bit components and storage cards with capacities
as high as 40MB.

   An Intel statement said, "Since it can be easily be erased and re-
programmed, uses little battery power and offers much higher performance
than magnetic disk media, flash memory is ideal for the new types of
mobile and handheld products such as mobile companions and cellular
phones."

   Flash memory chips currently have a market of about $200 million an-
nually, but that analysts believe the revenues will grow ten-fold by
1995. Research firm Dataquest has said Intel held 69% of the "flash"
market last year.


                     ** Pocket Modems from PIICEON **

   Piiceon has enhanced its Dispatcher line of proprietary-slot and
PCMCIA data communication products with new pocket modems.  The units
are 2.25 inches wide, 4.25 inches long and less than 1 inch deep. They
include MNP 2-5, V.42bis, comply with CCITT and Bell protocols and stan-
dards, and are Hayes AT compatible. The 14.4/14.4 bps version includes
MNP 10 (cellular error-correction) and and can transmit data at a top
speed of 57,600 bps with a maximum 4-1 throughput. It's priced at $335.
The 2,400/9,600 bps model costs $122.

   The units operate with IBM- compatible PCs and portables, as well as
Macintosh systems and the Apple Newton MessagePad. All of the modems,
with the exception of the Apple models, are bundled with Trio's data/fax
communications software. Piiceon's Apple products are bundled with
FaxSTF and Microphone LC.


         ** AT&T Product Can Send Graphics and Data With Voice **

   A product that enables users to send and receive graphics and/or data
while simultaneously talking on the phone has been announced by AT&T
Paradyne Corp.  Reports say the unit, called the AT&T DataPort 2001
Multimedia Sommunicator, uses a new AT&T Paradyne technology called
VoiceSpan that "increases the capacity of existing telephone lines by
splitting them into two bands, one transmitting high quality audio, the
other transmitting high speed data, including images."


                 ** Motorola Looks For On-Line Niches **

   A new unit of Motorola called INFO Enterprises is searching out, and
finding, small high-value niches in the on-line business.

   Spokesman Marilyn Teplitz discussed the strategy after the company
announced EnGenius, a new database on electronic components aimed at
product engineers. "It's run by a distributed network on Sun work-
stations under Unix," she said. "It's a combination of technologies
Motorola developed, which includes some patented technologies."

   Earlier, the company had rolled out LegaLink, a document conversion
service for the legal community marketed by Arthur Andersen.

   "These are the first of what we hope are many services," she added.
"We look at several issues when determining what vertical markets to
enter into. We want to see a large number of information providers, and
a large number of users with computers. The other key issue is a market
where the data is mission-critical, where you have to have current
information now, where the data is changing. There's lots of services
with archival information," and Motorola isn't interested in that
market.

   For EnGenius, Motorola is offering an introductory price of $20 per
month, plus line charges, through March. After that the charge goes to
$39 per month, but large firms can subscribe a wide area network for $65
per month. There is also volume pricing available, Teplitz said.


                  ** Online Comment Leads to Lawsuit **

   An Oregon biotech company called Epitope Inc. has filed suit because
of derogatory electronic comments made about it last summer on the Pro-
digy information service.  Reports say the suit "stems from actions Aug.
2, when an individual called William Smith filed a message.. The message
warned that the odds of Oregon biotech company Epitope receiving approv-
al for a blockbuster product were lower than the odds of seeing Elvis in
Malibu." Reportedly, the message said, "Be careful out there" and in-
cluded a number of allegations, most of which Epitope denies.

   Epitope's suit alleges "William Smith" actually was A. Karl Kipke, a
broker from Mission Hills, Kan., who, the company says, stood to make
money if Epitope's stock price fell.

   Kipke, not Prodigy, was named in the suit.


         ** First Prison Sentence for Software Counterfeiting **

   The U.S. District Court in San Francisco has imposed the first prison
sentence for software counterfeiting in the U.S.  Benny S. Lee was sen-
tenced to one year of imprisonment plus one year of probation as a
result of his guilty plea to a felony indictment for manufacturing and
selling counterfeit MS-DOS operating system software.

   Benny Lee and co-defendant Norman Chan, both former employees of Ev-
erex Systems Inc., were previously found liable by a jury in a civil
trial for copyright and trademark infringement in June 1991. The defen-
dants failed to honor the $5.3 million monetary judgment awarded to
Microsoft and Everex in the civil suit, and the case was subsequently
referred to the U.S. Attorney's office for criminal prosecution.

   Lee and Chan, in association with the original defendants, are esti-
mated to have manufactured and sold at least 25,000 copies of counter-
feit MS-DOS. Microsoft estimates that displaced sales from the counter-
feit software had a street value of $1.8 million.


                   ** Intel and AMD Trial Postponed **


   A trial expected to start this week between Intel Corp. and Advanced
Micro Devices Inc. was postponed until Nov. 15.   The trial, which will
be centering on Intel's complaint that AMD unfairly copied microcode in
its 287 chip, has been described as "pivotal" by experts but both
parties are expecting a fairly quick decision.


          ** Compaq Cuts Prices and Unveils 46 new PC Models **

   Compaq Computer Corp this week launched 46 new PC models and enhanced
the performance of many existing models. Compaq also unveiled multimedia
CDS models in the Presario 600 Series and the new Presario 800 Series of
"ready- to-run" multimedia PCs with a built-in CD-ROM drive, microphone,
speakers and more than a dozen pre-installed software and CD-ROM pack-
ages.

   Compaq also enhanced the price/performance of its other PCs, announc-
ing price cuts of 10 to 23% on Deskpro/M, ProLinea and Portable 486
families and 17 to 35% on portable options.


               ** Microsoft Introduces "DOS for Dummies" **

   This week Microsoft Corp. introduced a new version of DOS -- for dum-
mies! MS-DOS 6.2 Upgrade for Dummies is a new version of the old disk
operating system that is specially packaged for those who aren't too
familiar with its crotchety ways. The dummies upgrade is bundled with a
special edition of the best-selling computer book "DOS for Dummies,"
written by Dan Gookin.

   The upgrade has a retail price of $77.95, but will probably sell for
about $50 in stores. The new DOS version will also be licensed to
computer manufacturers to sell with their machines.


           ** Time Warner Interactive Joins in CD-ROM Craze **

   This week Software Sorcery - known for producing games with detailed
graphics and digitized sound effects, all intertwined with actual video
and photographs - and Time Warner Interactive Group - a leading develo-
per and publisher of interactive multimedia software titles for home
entertainment and "edutainment" markets - announced a publishing agree-
ment.

   It is hoped that the agreement will put Software Sorcery multimedia
games on every CD-ROM platform. The initial three offerings will be
"AEGIS: Guardian of the Fleet," "Fantasy Fiefdom" and "Dead Zone".

   Software Sorery's innovative, high-quality products have taken a
technological edge in the software industry by incorporating multimedia
techniques such as digitized video, voice and sound effects, rendered 3D
sequences, hypertext and breathtaking VGA and SVGA graphics in the
creation of exciting, interactive game play.


                  ** IBM Stops ThinkPad 500 Shipments **

   Due to customer reports of battery problems, IBM says it is stopping
the shipmentments of its ThinkPad 500 subnotebook until it can fix the
problem.  IBM said the problem affects only the ThinkPad 500 model and
not other computers in the ThinkPad line.

   According to an IBM spokesman the company is considering all its op-
tions, including a recall of this model, which was launched in June. He
said IBM should announce its plans by the middle of this month.


    ** Clarion Shipping Beta Version of Windows Database Developer **

   Clarion Software has announced beta release 1.0 of its new Clarion
Database Developer for Windows.  The beta release is now available to
users of Clarion Database Developer 3.0 or Professional Developer 2.1.

   The final release is set to begin shipping in mid-1994.  Registered
users of Clarion can purchase the product during the introductory period
for $495. The final release of the product will be priced at $995. Run-
time license fees or royalties aren't required.


                       ** Tandy Increases Sales **

   Tandy Corp. - the nation's largest retailer of consumer electronics,
including personal comptuers - reported an 18% sales increase in its
U.S. retail operations in October. Total sales were $317.1 million, com-
pared to $268.7 million last year.


                   ** AST Offers New Pentium System **

   A new Premmia LX P/60 personal computer that uses Intel's Pentium 228
processor has been launched by AST Research. Reports say the 64-bit unit
will carry estimated sales prices beginning at $3,325.

   "The Premmia LX P/60 line is available in the Model 3, which has 8
megabytes of random access memory expandable to 128MB, and Model 543W
with 16MB RAM and a 540MB hard drive."


                   ** Rasterops Offers Graphics Unit **

   TrueVista Pro EISA, described as a professional quality frame buffer,
has been unveiled by RasterOps Corp.'s TrueVision Inc.  Officials of the
company said this is the first of a number of products based on its new
DVR architecture.  Reports say the product is a broadcast-quality frame
buffer for use in IBM/compatible PCs.


          ** Lexmark Demonstrates 'Microsoft At Work' Printer **

   Lexmark International Inc. has demonstrated a high-resolution desk-
top laser printer based on the Microsoft At Work printing software. The
software, the same type used in the Microsoft Windows Printing System,
makes the printing function a Windows- based application, delivering
higher performance and improved ease of use.

   Lexmark says it worked closely with Microsoft to develop the demons-
tration printer. Lexmark also announced that it will support the
Microsoft At Work software in selected future printer products.

   Microsoft At Work software is designed to make office machines such
as printers, fax machines, copiers, handheld systems and telephones
easier to use, more cost-effective and better integrated with desktop
computers and one another.

   Lexmark, the former IBM printer and typewriter division, showed the
600 dots-per-inch, 8 page-per-minute laser printer as a technology
demonstration at a Microsoft-sponsored event.


         ** Microsoft Slashes Price Of Multimedia Encyclopedia **

   Microsoft has cut the suggested retail price of its Encarta multi-
media encyclopedia to $99 through December 31, 1993. The product has
been priced at $395.

   Encarta is currently available for Microsoft Windows-based PCs. The
company says it will release an Apple Macintosh version early next year.


              ** STB Intros Dual-Monitor Accelerator Card **

   If you need to display two applications simultaneously and don't want
to do it with Windows, you'll be happy to hear that STB Systems Inc.,
has released a dual monitor graphics accelerator card that can drive two
monitors at the same time.

   STB says the card, designated the MVP-2X, integrates two video chan-
nels versus the usual single channel. The card supports a full suite of
Windows 3.1, OS/2, and DOS applications, including AutoCAD release 12.

   STB says the MVP-2X is based on two Tseng Labs ET4000-W32 video
chips, and allows users to view two different monitors at the same time
via two independent video ports. Windows and OS/2 uses can work in a
virtual screen environment which provides one virtual screen across both
monitors. Windows, OS/2 and DOS users can utilize a port switching mode
that permits two different applications to run at the same time, one on
each monitor. The card is backwards-compatible with all existing STB MPV
video cards based on the Tseng ET4000 video controller chip.

   The cards come with drivers for Windows 3.x, Windows NT and OS/2.
Panacea's DLD386-VGA Deluxe Autodesk drivers are available as an upgrade
option for CAD/CAM (computer-aided design/computer-aided manufacturing)
users.

   The MVP-2X will begin full production runs this month, and has a
suggested retail price of $1,099.


              ** IBM Ready To Launch OS/2 Without Windows **

   Unhappy at paying royalties to rival Microsoft Corp., IBM is prepar-
ing to launch a version of its OS/2 operating system without built-in
code to run applications written for Microsoft's Windows operating
environment.

   The Windows-less OS/2 would let users run Windows applications provi-
ded they already had Windows installed on their PCs. OS/2 would estab-
lish where the Windows code was stored and would call on it directly
when asked to run a Windows application.

   Sources said an announcement can be expected by mid-November. The
Comdex/Fall trade show, which begins in Las Vegas Nov. 15, would be a
likely venue.


        ** AMD Gets "Windows-Compatible" Logo, Intros New Chips **

   Advanced Micro Devices has introduced two new members of its 486-
based microprocessor line and said it has signed a licensing agreement
with Microsoft Corporation that gives AMD the right to use the "Windows-
compatible" logo on its 386 and 486-based chips.

   The company announced a 40 MHz 486DX-based microprocessor that in-
corporates power management features, and a clock doubled 486DX2-66MHz
chip.


                         ** New Apple Monitor **

   Apple officials announced this week the launching of the new Apple
Color Plus Display, a 14-inch monitor priced at $305.  The 640 x 480
pixel display compliments its line of new, aggressively priced PCs.


                   ** Apple Offers Powerbook Rebates **

   Apple announced this week a $100 and $500 instant rebates on select
Macintosh PowerBook computers and peripherals. Customers who purchase
and take delivery of a PowerBook 165 or 165c will receive an immediate
$100 rebate.  Those who buy a PowerBook Duo 230 4/160 with a duo dock
and express modem will receive an immediate $500 rebate.  These prices
are good only at participating resellers, while the supplies last, and
thru January 31st, 1993.


              ** Apple's Fourth Quarter Profits Drop 97% **

   Apple Computer Inc.'s fourth quarter profits dropped 97% to $2.7
million (or 2 cents a share), compared to $97.6 million earned a year
ago.


           _____________________________________________________




               » New War On Modem Standards Set for Comdex «


BOCA RATON, FLORIDA, U.S.A., 1993 NOV 8 (NB) -- Businesses and
individuals seeking faster modems face a new war on standards this month
at Comdex.

Following Hayes' release of a new 28,800 bits per second (bps) modem
based on the interim V.FC standard, Boca Research has announced a
24,000bps product that also conforms to the V.FC standard. Boca
indicated that more companies are expected to join its move to V.Fast,
using a new Rockwell chip set which also transmits faxes at six blank
pages per minute, or 14,400 bps.

While the new modems will be a big advantage to companies which want to
link offices at higher speeds and bulletin board system operators,
their utility is limited. Most packet networks maintain 9,600 bps as
their highest speed, and most fax machines transmit at a top rate of 4
blank pages per minute.

With continuing confusion on standards and speeds going higher than
that, it's unlikely many networks will commit to any upgrades. Most
networks, in fact, have yet to offer 14,400 bps service even though the
V.32bis modulation and V.42bis data compression and error correction
standards are well-established.

Boca said that the starting price of its new V.Fast Class product,
$395, is about the same as 14,400 bit/second modems were selling at
earlier this year. The 14,400 bit/second product now carries a street
price of about $150. Lower prices are made possible by standardized chip
sets based on digital signal processing technology and a host of modem
makers, resulting in fierce competition with high-quality products.

Boca was founded by Tim Farris, who had formerly started another add-in
board company called Quadram in the early 1980s, which was eventually
folded into National Semiconductor. At Quadram, Farris was the technical
expert, and Boca has maintained a reputation for quality even while
expanding its product line.



             » Atari Jaguar Intro'd, Can Atari Meet Demand? «


SUNNYVALE, CALIFORNIA, U.S.A., 1993 NOV 9 (NB) -- The Atari Jaguar,
introduced last Thursday in New York, has impressed Wall Street, but may
not be able to meet demand. The enthusiastically received $250
video-game player is priced hundreds of dollars below the competing 3DO
product and has the  backing of IBM and Time Warner.

About 50,000 Jaguars are expected to ship before Christmas, with 10,000
slated for the European market and the remaining 40,000 divided between
stores in the New York and San Francisco areas. But Newsbytes sources
said already the machines are almost sold out and manufacturing more, in
time for a planned national rollout in January, could be difficult. IBM
is contract manufacturing the Jaguar at its facilities in Charlotte,
North Carolina.

Atari said the Jaguar runs on a 64-bit chip and can display over 16
million colors as well as three-dimensional (3D) objects. A compact disc
read-only memory (CD-ROM) drive can also be added. Several well-known
game developers announced support for the system including: ID Software,
Virgin Interactive Entertainment, Accolade, Interplay, Microprose Ltd.,
Microprose US, Gremlin Graphics Ltd., 21st Century Software, and UBI
Software.

The Jaguar is targeted to bring Atari back into markets now dominated
by Nintendo and Sega. Atari has faced hard times, but Wall Street
appears to be enthused about the company's comeback,  as the stock price
has climbed from dismal levels of below a $1 per share in April to
close Friday at 11 and 3/8. The company is publicly held with the
chairman holding 46 percent and Time Warner holding another 25 percent.


              The preceding two stories are © 1993 NewsBytes.
                        Reprinted with permission.