Play Meter

Issue: 1981 September 15 - Vol 7 Num 17

operator made this easier. I strongly believe it is a
fundamental of good business that what is best for the
industry is best for Sega/Gremlin-and this kind of
thinking transcends every element of Sega/Gremlin's
planning.
What has Sega/Gremlin come up with that will
support the distributor's and operator's position, and
stem the industry issues just discussed? Sega/Gremlin
has introduced its new video games, called Conuert-A-
Game with built-in conversion capability.
The Sega/Gremlin Conuert-A-Game system
represents the most recent state-of-the-art technology.
The G-80 hardware system will accommodate as yet
unrealized levels of sophisticated, complex game play.
And conversion with Conuertapak is incredibly simple!
Sega/ Gremlin's introduction of video game
conversion will impact the industry at every level. For
this reason, it is important to clearly understand the
market ramifications of conversion; and how
Sega/Gremlin's Conuert-A-Game system will impact
customers.
First and foremost, Sega/Gremlin presents this
marketing strategy only after we have proved to
ourselves the benefits of Conuert-A-Game. Conversions
are a way of life in Japan-and have been for over two
years now. It was during this time we developed the
Conuert-A-Game concept.
I would like to highlight Sega/Gremlin's conversion
capability and shed some light on where we go from here.
Sega/ Gremlin's unique G-80 hardware system
provided the technological sophistication and
tremendous flexibility needed in today's marketplace. In
comparison to the rather "limited" capability of
cartridge/cassette systems, the Conuert-A-Game G-80
hardware has built-in future capability to design games
which are more sophisticated than anything seen to date.
As with Astra Blaster, Sega/Gremlin's G-80 hardware
is modular in design. Housed within a card cage are six
PC boards: (a) CPU, (b) memory, which holds the game
program, (c) video board, (d) video background board,
(e) sound, and (f) speech. The card cage is situated in a
newly designed cabinet which allows front entry. Quite
simply, the PC boards to be replaced are slipped out, the
new boards are inserted, and off you go with a brand new
game.
What does Sega/Gremlin Conuert-A-Game and
Conuertapak mean to this industry? The best way to
answer is to refer back to the earlier listing of the key
issues confronting our industry.
(l)Market maturity. The market can be viewed in
three distinct segments: the market for new "hot"
games, the replacement market, and pipeline to new
locations. The Sega/Gremlin new game introductions
that are now being presented, as well as future models
that will be introduced as Conuert-A-Game and
Conuertpak, meet the needs of all three market
segments:
(a) Market for new "hot" games. As regards the
market for new "hot" games, all indications lead us to
believe the Sega/Gremlin new game introductions are
timely to the marketplace-and are dynamite at the
player level. And with the purchase of such games
operators will be provided with an additional major
benefit- built-in resale value at a later date. How so?
Through Convertapak conversion capability in the
replacement market.
(b) Replacement market. There are two levels
within the replacement market. On one level are sales of
Sega/Gremlin Conuert-A-games to operators who need
to add or replace equipment for whatever the reason. On
the second level, in the future, are sales of Sega/Gremlin
new game Convertapaks, and sales of one complement
sales of the other.
• • •
Looking back again to industry issues, I would like to
explain how Convert-A-Game and Convertapak make a
very positive impact on the pace of new game
introductions.
(2)Pace of new game introductions/trade-ins. There is
a trend which suggests the player is not only more
sophisticated in terms of what he expects from a game,
but is also less and less inclined to stay with a new game
for any period of time. This should mean manufacturers
will be forced to introduce new games at an even faster
pace than today. The added pressure on operators to
have all the latest " hot" games will increase significantly!
The problems of too many product introductions, high
new game purchase prices and low trade-in values are all
mitigated with Sega/Gremlin's Convert-A-Game
system.
It is important to remember that today's great
"winner" is next year's problem unless you can convert
the game to something new that's also a "top" money
earner.
Convert-A-Game is a concept whose time has come,
and I believe Sega/ Gremlin is the first to develop and
implement a truly sophiscated and flexible system to
meet current and future market demands.
(3)Distributor capitalization. The benefit of
conversion in terms of distributor capitalization is fairly
obvious. With less capital tied up in Convertapaks a
distributor can finance additional new business. The
Newer game systems to come
Also, Gremlin/ Sega will introduce several different
models of its Convert-A-Game system, and each model
will be available in standard upright, mini, and table
configurations. It's hardly a secret that Sega/Gremlin is
about to unveil the world's first color X-Y game. That
gives customers two Convert-A-Game models- color
X-Y games and standard raster monitor games- with
which to enjoy the economic advantages of
Convertapak conversions.
Lastly, Sega/Gremlin has beefed up its customer
service function-and will continue to do so, even to the
point of over-kill, to make absolutely certain we give the
customer service support he needs. Field seminars
including actual demonstrations of Convert-A-Game
conversions will be scheduled throughout the country.
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ability to finance additional sales should properly be
viewed as incremental business attributable to
Sega/ Gremlin's Convert-A-Game system.
In addition to this is the fact of credit lines. For the
approximate price for one new machine of $3,000, three
Convertapaks can be sold.
Where do we go from here? We look at the industry as
having about 700,000 computer video games on location.
Over the next three years all these machines will have to
be replaced. I leave it to your imagination as to the
excitement and demand Convert-A-Game and
Convertapak will create at the operator level!
Sega/ Gremlin will continue to design and manufacture
unique games other than the Convert-A-Game.
Arcades, for example, will always require special effect
games, a unique cabinet may be required for particular-
type game play, and on and on.
When Ordering, Use
Wlco No. 15-9550-01
$49.95
EACH
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15, 1981
'
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