26th July 1995
3DO Co. said sales of its Interactive Multiplayer system rose by more than 170% based on a survey comparing two weeks, one in May and one in July. The company’s shares have reacted positively to the news.
At 4:22 p.m. EDT, 3DO’s shares were up 1 5/8 to 13 7/8 on volume of 1,609,600 shares. Average daily volume is 347,731 shares. A spokesman for 3DO said the sales increase was verified by a survey of 3DO’s major retailers in which system sales were compared using figures from the first week of July and the first week of May. This was done to gauge the success of a $299 price, which has been in an effect less than a month.
”… Sales of 3DO players are up 128% at our stores,” said Dan Dematteo, president of Neostar, a chain with over 700 stores nationwide. ”We expect to see strong 3DO presence in the Christmas buying season.”
In a press release, 3DO said the sales success is only partially due to the pricing. Many consumers are buying 3DO systems because it gives them 20 times more titles than comparable 32-bit systems and an upgrade path to 64-bit technology which will deliver 7-10 times more performance than current systems, the company said.
Consumers are voting with their dollars that the 3DO(TM) Interactive Multiplayer (TM) system is the best next-generation CD gaming system. Following Goldstar and Panasonic’s recently announced $299 price point, which is $100 lower than any advanced 32-bit CD gaming system available today, sales of the 3DO system increased by more than 170 percent over a comparable period in recent months, giving consumers the best value for their money.
“With the new $299 price, sales of 3DO players are up 128 percent at our stores,” said Dan Dematteo, president of Neostar. “We expect to see strong 3DO presence in the Christmas buying season.”
The exploding sales success is only partially due to the price advantage of 3DO systems. Many consumers are buying 3DO systems because it gives them 20 times more titles than comparable 32-bit systems and an upgrade path to 64-bit technology which will deliver 7-10 times more performance than current systems. For $299, Panasonic’s system comes bundled with the top-selling game GEX(TM) and the Goldstar system is sold with the award-winning FIFA International Soccer and Shock Wave(TM), giving consumers an additional $60 and $120 value respectively.
Many retailers nationwide have seen a sales increase in 3DO systems with the new price. These include The Electronics Boutique, Inc., one of the top computer and video game retailers with 519 stores worldwide; Fred Meyer, a full service mass merchant retailer with 103 stores in the northwest; The Good Guys, a 60 store West Coast consumer electronics chain; Neostar, a chain with over 700 stores nationwide; Nobody Beats The Wiz, a 54 store regional consumer electronics, music, video, and video games chain; Mecca Electronic Industries, a major New York City video games distributor; and Meijer, a 94 store chain in the Midwest.
“3DO has proven that the $299 price point is an issue that is going to have to be addressed, especially after the PlayStation ships,” said Pete Roithmayr, merchandise director at The Electronics Boutique, Inc. “With the new price point and software library, 3DO is a strong competitor.“
In addition to the new $299 mass market price, 3DO has established a mass market presence, selling in more than 10,000 retail outlets in North America including Best Buy, Circuit City, F.A.O. Schwarz and Wal-Mart. With the recent addition of FuncoLand with 180 outlets, 3DO systems are more widely available than any other 32-bit gaming system.
With more than 125 titles currently available in North America, 3DO offers more than 20 times the number available for other 32-bit systems on the market. In addition, the 3DO platform has amassed over 220 titles worldwide.
Currently the hottest selling title for the 3DO platform is GEX with over 250,000 units manufactured, making it the best-selling title for the 3DO platform ever. GEX follows other big hits for the 3DO platform including titles from Electronic Arts such as FIFA Soccer and Road Rash (TM), and Panasonic’s Super Street Fighter II, all of which have more than 150,000 units manufactured.
More than 75 new titles are scheduled to be released for the 3DO system between now and Christmas including NHL, Primal Rage, Flying Nightmares and PO’ed.
To strengthen 3DO’s software competitive advantage, the company has launched Studio 3DO. A software development and publishing operation, Studio focuses on pushing the limits of technology by delivering the best graphics, sound and game play exclusively for the 3DO platform. Studio 3DO is on the verge of launching numerous new titles such as the highly-anticipated Killing Time(TM) and BladeForce(TM).
3DO’s aggressive pricing and software library are only part of the company’s strategy to differentiate itself from the late arrivals to the 32-bit market. In May, the company unveiled its M2 technology, which will give current 3DO owners an upgrade path to 64-bit gaming technology. With M2, consumers will be able to upgrade their current 3DO system into a full-blown 64-bit machine, giving them 7-10 times the graphics, sound and video performance of systems today. More information on the M2 technology will be announced later this year.
NOTE: This is a copy of an old 3DO related Press Release – reformatted and originally copied from various old Google Group forum posts.