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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