🚀 go-pugleaf

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
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