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WSJ 6/15

From:
Date: Tue, 16 Jun 1998 13:15:08 EDT

hi
just sat down again (no wearable yet!) to see; 
my 1st 'sorry' sent this am @ 09:52:09 EDT, still hasn't appeared @haven.org,
and of course now, no paper copy is available on the stands!

so i took the "opportunity",, to sign on for 2 free trial weeks to experience
WSJ online access etc.
here's the 3 articles mentioned (not at all the full "Technology section", but
only my quick (comwearcom) selection yesterday am, seems you need to know
<correct> article titles to read copies that are searched 1 by 1 from online
wsj 6/15/98. 

apologies for the band width 'here' & to wsj for copies posted, hey they may
get a subscription?

tris metcalfe

The Wall Street Journal Interactive Edition -- June 15, 1998

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<Picture: refine your search>The Wall Street Journal Interactive Edition --
June 15, 1998

"On the Drawing Board"

A Look at Some of the Latest Gizmos
Being Readied for Market. 

By KARA SWISHER

NOT SO LONG ago, an ice maker in the refrigerator door seemed like a pretty
cool gadget.

Now, a Japanese start-up called V Sync Technology has declared that it will
begin selling an "Internet refrigerator" in that country by late 1999. It
sports a full-size, liquid-crystal-display screen in the door that can be
activated by touch or even with spoken commands using IBM Japan Ltd.'s
ViaVoice voice-recognition software.

The user can access the Internet through the desktop personal computer perched
atop the refrigerator. It sports a 333-megahertz Pentium II processor, 128
megabytes of memory, a 3.2-gigabyte hard drive, a Windows 95 operating system,
a Netscape Navigator 4.0 browser, and even a radio and television tuner. Total
cost, say its creators, would put it at about $770 more than an average
refrigerator.

That could mean that when you go to grab a cold bottle of beer, you could also
look up all the Web sites devoted to microbreweries. The question, however,
is: Would you want to?

That same query comes up often these days, as companies affix the Internet
come-on to just about any product they can. The World Wide Web beckons these
days from products ranging from cellular phones to big-screen TVs to now even
refrigerator doors -- no matter how absurd the idea sometimes seems.

"A lot of what is being developed is not making a lot of sense," says Nick
Donatiello, president of Odyssey Ventures Inc., a San Francisco market-
research firm. "I think we are in a phase of 'Build it because we can,' rather
than because people want to buy it. Just because something is technically
possible does not mean we should make it."

That doesn't seem to matter to companies that hope to hit it big with the
latest consumer gadget and replicate the kind of success enjoyed by 3Com
Corp.'s now-ubiquitous PalmPilot. The hand-held computer was a triumph for its
Santa Clara, Calif., parent after years of failed attempts by other companies
to get the public to accept such devices.

In time-honored fashion, new gadgets continue to venture into the market,
despite huge risks and often razor-thin profit margins. The current high-tech
wave falls into several types of efforts:

Internet,
Internet
and Did We Mention the Internet?

Over the years, many companies have assumed that consumers want a device that
does everything in one package. The problem is that there seem to be more and
more things to do, and packing it all in is getting a bit messy. The Internet
adds a whole new dimension to the problem.

A growing number of devices will allow a person access to the Internet along
with being able to perform a lot of other tasks. Industry experts expect that
many current gizmos, such as the PalmPilot, will eventually be able to both
send and receive electronic mail and access Web pages. The first generation of
Internet cellular phones -- complete with little screens and keyboards for Web
surfing -- is already hitting the market.

But the size limitations make such efforts tough: Tiny keyboards are
cumbersome to use, and dinky screens make for eye strain. Which is why
manufacturers are working with companies that will allow better use of the
Internet from these small devices.

One such company is a Palo Alto, Calif., start-up called Siliscape Inc., which
is making an attachment for cell phones and other devices that projects
enlarged images from a tiny screen held about six to eight inches from the
eye. Siliscape's technology, funded in part by Microsoft billionaire Paul
Allen's investment group Vulcan Ventures Inc., is akin to a floating hologram
that tricks the users' eyes into believing they are looking directly at a big
screen.

The hand-held device -- which is about a half-inch thick and will cost $100 to
$200 -- is expected to ship by this summer and be available for many popular
cell-phone brands by the end of the year.

"It creates a virtual image of the screen, working like a reverse microscope,"
says Siliscape spokesperson Willa Patch. "We're aiming to be able to help
cellular-phone makers and those who manufacture personal digital assistants
make their devices better."

For Those Who Still Can't Program a VCR

While major cable, chip and software companies argue over the shape of digital
set-top boxes that will bring a variety of interactive programming into the
home, a start-up in Santa Clara, Calif., called Teleworld Inc. is
concentrating on how to store it all once it gets there. Teleworld also plans
to offer a service that will allow a consumer to record that material based on
his or her own preferences.

The device -- to be either a stand-alone box or integrated into a TV set or
set-top box -- will be tested with a group of consumers later this year. It
will initially hold about three hours of programming.

A user can select specific shows to be saved, or allow the Teleworld service
to seek out programming based on personal tastes, such as a yen for animal
documentaries or political fare. Once you watch your programming, it will be
recorded over. TeleWorld officials won't yet discuss cost or availability of
the device or the programming service.

"We are trying to simplify the increasingly complicated television experience
for the consumer," says Teleworld Chief Executive Officer Michael Ramsay. "As
choices increase, there is a need for devices and services that make it easier
to enjoy all that will be offered."

Gizmos That Make Life Slightly Better

Some of the gadgets hitting the market are basically variations or
improvements on technology that already exists.

Mobil Corp., the Fairfax, Va., petroleum giant, has developed a device for car
owners to streamline the gas-pumping process. Called Speedpass, it is based on
technology now being successfully used at highway toll booths.

The two-inch black box, which sits on the rear window of a car, allows a
customer to forgo swiping a credit or debit card at the pump, a wrinkle that
had already virtually eliminated the need for a human employee at gas
stations. When a car with a Speedpass box pulls up to a pump equipped with the
correct technology, the box turns on the pump and then automatically charges
the gas to the owner's credit card when he or she is done.

The Speedpass box -- or an alternative key-chain fob that can be dangled in
front of the pump -- is free, but can be used only at Speedpass-equipped Mobil
stations. The technology is available at 2,500 locations around the country,
and 900 more are expected by this summer.

If you face a long, boring commute, consider Audible, a small hand-held
recording device that can hold two hours of audio material downloaded from the
maker's Web site through your PC. Using flash memory -- a chip that stores
data even when the electrical current turns off -- rather than tape, Audible
can play back the material over a car stereo or through headphones.

Privately held Audible Inc., the device's Wayne, N.J., maker, says it has
signed deals with all the major recorded-book companies and a wide range of
content providers. Available since last November, the service currently offers
about 12,000 hours of programming, plus links to other networks.

The Audible device itself costs $199, and users pay for each download. For
instance, the four-hour recorded version of the bestseller "Angela's Ashes" by
Frank McCourt costs $8.95. (For programs longer than Audible's two-hour
capability, users can download the entire program onto their PC's hard drive
and take smaller portions as needed.)

Audible also expects companies could benefit from the service, by posting
corporate information on the Audible site that employees or customers could
download from the Internet, giving them access to data when traveling or
commuting.

Virtual Gadgets

Not all devices exist in the real world. Many are being created in the ether
of the Internet as the global medium becomes a gadget itself.

WebCal Corp., based in New York, is now testing an Internet-based system that
would allow users to maintain a calendar on the company's Web site and access
and change it from any Internet-capable device. The service, which started in
May, charges corporate users a $2,500 one-time fee plus $500 a year. Any
individual can also get a calendar free of charge.

Rather than having to use dedicated software (such as the Lotus Organizer), a
company can use WebCal for all its far-flung employees to coordinate meetings
or inform them of critical industry events. In addition, with links on-line to
hotel and car-rental companies, a person can make reservations that would be
automatically recorded on the calendar and can also be synched with existing
devices like the PalmPilot.

Privacy is protected with passwords and encrypted information, say the
calendar's creators. WebCal is also designing a variety of calendar templates
aimed at specific niches, such as those for college students or for someone
who might like to know about computer events.

"We want people to be able to have a virtual office," says WebCal's chief
executive officer, Bruce Spector. "So wherever they are, they are connected."

Such a sentiment sounds good to those a bit dubious about more gadgets. "New
consumer devices should aim to coordinate all the pieces and cut the
complexity for consumers," says Odyssey's Mr. Donatiello. "Instead of just
being a bunch of cool features, it all has to work together to create a
benefit, or else why do we need it?"

-- Ms. Swisher is a staff reporter in The Wall Street Journal's San Francisco
bureau. Return to top of page | Format for printing Copyright © 1998 Dow Jones
& Company, Inc. All Rights Reserved. 

"Tokyo's Toys"

What Products Are Going to Be Hot In the U.S.
Tomorrow? Look at What's Hot In Japan Today. 

By NORIHIKO SHIROUZU

TOKYO -- Talk about a smart new car. This one reads headlines and e-mail out
loud, searches for your destination and navigates to it, maps coming freeway
junctions on a dashboard display and warns of turns and lane changes ahead. A
vehicle of the future? Not in Japan.

The talking, searching, navigating car is a reality thanks to Monet, a
computerized navigation system recently introduced in Japan by Toyota Media
Station Inc., a Toyota Motor Corp. affiliate. Monet uses digital cellular-
phone technology to access real-time traffic and other information from a
central database -- something that wasn't available with earlier car-
navigation systems.

<Picture: Monet ad>

Monet hasn't had time to prove itself on the road, but it's part of a new
generation of digital communications gadgets being rushed to the market in
Japan. When it comes to introducing consumer electronics, the Japanese often
still lead the world. And history shows that hit gizmos in Japan often become
hits in the U.S. months -- or even years -- later. Examples: Nintendo Co.
computer games, Sony Corp.'s Walkman, the CD player.

Of course, much of Japan's new technology is half-baked, overpriced and
sometimes downright bizarre, and never makes it even here. But it's worth
looking at some of these new gadgets for a hint of what's to come.

And right now, Japan's electronics wizards are going into overdrive producing
devices that communicate in new ways. A few of the latest:

Paldio Doraephone

Here's one more reason to buy a cell phone for the kids: a phone with a
tracking device that helps parents keep tabs on their children.

<Picture: Doraemon phone>

Japan's cell-phone giant, NTT Personal, a subsidiary of Nippon Telegraph &
Telephone Corp., began selling the device in February. A navigation-system
spinoff, the phone uses antennas -- placed about 500 feet apart in major
Japanese cities -- to pinpoint the phone's bearer. Parents call NTT's central
computer, punch in the phone's registered number and hang up. The computer
finds the phone and faxes back a map marking the bearer's location to within
300 feet.

To make the phone more palatable to kids, NTT designed it to look like a
popular Japanese cartoon character, a creature named Doraemon. The Doraephone
costs about $40, and the tracking service, called Imadoko (meaning "where are
you now?"), costs as much as $3 a month and 30 cents a search.

"It's a great system to make sure your son or daughter doesn't wander into a
seedy section of the town, and that they're where they're supposed to be,"
says Mutsumi Takai, an NTT spokeswoman. "It buys parents peace of mind." No
studies exist yet on how kids feel about it.

Eye Trek

Video goggles aren't anything new, but until now they haven't been anything to
write home about. Sure, you could watch television or computer screens up
close, but most models were heavy, ski-goggle-like affairs with fuzzy, eye-
straining images.

Olympus Optical Co., the camera maker, has tried to leapfrog over its
competitors with its new lightweight (about a quarter pound) face-mounted
video display -- a device called the Eye Trek that feels a lot like a pair of
sunglasses. The Eye Trek, which is to go on sale here on June 20 for about
$500, weighs just one-fifth as much as Sony's conventional video goggles, the
Glasstron, which sells for $680 in Japan.

<Picture: EyeTrek>

Olympus says the Eye Trek set provides the illusion of watching a 62-inch TV
screen from two meters away. That is the optimal distance, says Olympus
Spokesman Shinichiro Murakami. "A greater distance to the screen would make
movements on the screen significantly less exciting," he says. The Eye Trek
can be connected to a TV, VCR, video-game machine or DVD player.

The Eye Trek certainly is light on the face, and it nicely approximates a big-
screen TV -- if you hold still. If you don't, watching a movie or playing a
video game can be disorienting. Even a slight bobbing of the head makes the
image jump before your eyes, rendering the system unfit for extended use
without head support. And images on the Eye Trek's liquid-crystal display are
still a tad fuzzy. "That's the biggest task facing us," concedes Mr. Murakami.
He says Olympus must solve the problem before introducing a similar product in
foreign markets.

The technology that let Olympus shrink its face-mounted video display and
significantly improve its images is what the company calls a "free-shaped
optical prism," which combines a liquid-crystal display panel with a compact,
lightweight prism requiring fewer components.

Olympus plans to begin selling Eye Trek in Japan in June for about $500, but
has no plans to launch it in the U.S. anytime soon. One way for Americans to
get an early glimpse: Fly first-class to Tokyo. This month, for many of its
flights between Japan and the U.S., Japan Airlines began offering first-class
passengers in-flight movies on Eye Trek.

Monet

The Monet system costs $2,300 plus a sign-up fee of $20 and an annual
subscription fee of $46. And you need a digital cellular phone.

But, oh, what it can do for you when you're in a strange town.

On a recent drive through Yokohama, a visitor asks Monet for the Esso gas
station nearest the city's waterfront shopping center, using a few keystrokes
on Monet's touch-sensitive dashboard display. Monet dials up its central
database in Tokyo and also taps into a satellite-based navigation system. In
about half a minute, it shows on the screen the Esso station's address, phone
number and hours of business, and charts the shortest route to it on a map.

Drivers can use Monet to find just about any business in most any Japanese
town. Monet even suggests restaurants by cuisine, budget or rating, and then
guides the driver to the one selected. It can even "talk" drivers to their
destination through a voice synthesizer. "Monet's got some great functions I
can definitely use on the road," says Shinichiro Watanabe, a salesman who
drives tens of thousands of miles a year and who recently test-drove a car
equipped with Monet.

Monet and similar systems being introduced in Japan by Nissan Motor Co. and
Honda Motor Co. are the second generation of satellite-based navigation
systems, which first appeared in Japan in the 1980s. Monet's headline feature
is its real-time information. That's an improvement over the previous system,
which drew data from CD-ROMs and other memory devices that quickly became
outdated. Monet's central database is periodically updated -- traffic
information every five to 10 minutes -- when the Monet user is in areas
serviced by cellular-phone carriers.

Of course, there are glitches. When the visitor in Yokohama asks for
directions to an Italian restaurant, Monet responds: "Turn right at the next
intersection" -- directing the car onto a road that is closed for
construction. (Monet apparently doesn't know about the city's interminable
efforts to refurbish its waterfront -- though Kazumasa Hata, a Monet marketing
manager at Toyota Media Station, says Monet generally will be up-to-date on
such obstacles.) And while Monet found that Esso station in 30 seconds, it
didn't get the station's hours right.

"For most people who rarely venture into unfamiliar towns," says Mr. Watanabe,
"Monet will likely end up like a juicer in the kitchen -- something you use
once and quickly forget you even own it." Toyota Media Station, which has
signed up about 2,000 drivers, says it has no plans to market a similar system
in the U.S. But Mr. Hata says it's a possibility for the future, depending on
the response of Japanese consumers.

Ruputer

The Japanese are always quick to go Americans one smaller. That's what Seiko
Instruments Inc. has tried to do with the Ruputer, which it claims is the
world's first wristwatch personal digital assistant--a sort of wearable
equivalent of the PalmPilot.

<Picture: Ruputer>

The Ruputer is a bit bulky and can't do e-mail. But it has a date book, a to-
do list and other data-storage capabilities that, like the PalmPilot, can be
backed up on a desktop personal computer using a docking station. The watch's
back-lit liquid-crystal display, measuring about four-fifths of an inch by
11Ú5 inch, can show five lines of Japanese or Roman characters. Its input
method is a bit cumbersome: The Ruputer, weighing 2.4 ounces, lets the user
write memos on a keyboard that appears on the touch-sensitive display.

The Ruputer, powered by a 16-bit microprocessor with 128 kilobytes of main
memory, comes in two models: one with a 512-kilobyte flash memory for $290,
and the other with a two-megabyte flash memory for $360. The Ruputer went on
sale in Japan last week. A Seiko spokesman says the company will decide
whether to market it in the U.S. after seeing how it fares in Japan.

-- Mr. Shirouzu is a staff reporter in The Wall Street Journal's Tokyo bureau.
Return to top of page | Format for printing Copyright © 1998 Dow Jones &
Company, Inc. 

The Wall Street Journal Interactive Edition -- June 15, 1998

"It Sounded So Good ..."

The History of Consumer Electronics
Is Littered With Failure. 

By LEE GOMES

IT WAS THE SPRING of 1996, and Ron Perkes was convinced that a huge market in
consumer electronics was about to take off -- with him sitting in the catbird
seat.

The San Rafael, Calif., entrepreneur had a product with a lofty name --
WorldVision -- and even loftier ambitions. By combining a high-quality,
29-inch monitor with an advanced personal computer, WorldVision would meld the
television and PC into a single, living-room-friendly product. The idea:
Families could watch their favorite shows, then switch to the Web for some
communal surfing.

A Few That Didn't Make It

<Picture: Go to They Didn't Make It>

Why do so many consumer products misfire so badly? For a number of reasons,
say technology historians and industry analysts.

At $3,000 a pop, the systems from Mr. Perkes's NetTV Inc. were expensive by
the standards of consumer electronics. But he had persuaded a number of retail
chains, including CompUSA Inc., to carry the product. It took nearly $5
million to ready the unit for market, but by April 1996, it was being
manufactured, salespeople had been trained and glitzy brochures printed up.
Mr. Perkes waited for the phones to start ringing.

Instead of getting orders, however, NetTV got only questions. "People asked,
'Why exactly would I want this in my living room?' " Mr. Perkes says.

The product bombed.

"We miscalculated," recalls Mr. Perkes with a sigh. "It was very
disheartening."

In contemplating his unsuccessful foray into the world of consumer
electronics, Mr. Perkes can at least take solace in one fact: He has plenty of
company.

Indeed, the battlefield of consumer electronics is strewn with casualties,
from small entrepreneurs like Mr. Perkes to some of the world's biggest
companies. Their failures -- some of which involved hundreds of millions of
dollars -- span many decades, and have had a multitude of causes. But, taken
together, they should provide a cautionary tale to companies hopping on the
digital consumer-electronics bandwagon.

"We have 28 filing cabinets here in our offices, and 20 of them are dedicated
to consumer campaigns that failed," says Rick Doherty, an analyst with
Envisioneering Group, a consumer-electronics research outfit in Seaford, N.Y.

Digital Allure

The reason so many people have made so many attempts at the consumer-
electronics world is obvious. There are few markets as pervasive, or as large:
Sales of consumer-electronics hardware are estimated by trade groups at $80
billion a year. But much like the world of sports, where captains of industry
snap up teams as trophies, the consumer marketplace seems to have an allure
that transcends simple economics.

"Consumer electronics touches so many people that we want to be associated
with it, even though profit margins are sometimes razor-thin," says Mr.
Doherty. "People beam when they are involved in consumer electronics, and
that's why there are so many wannabes. Even before Bill Gates touched a
computer keyboard, he listened to the radio."

The latest boom that some fear may be waiting to bust is the digital
"convergence" that Mr. Perkes hoped to exploit: the marriage of computers and
television to get couch potatoes to sit up and pay rapt attention to a new
breed of interactive media.

Like many other would-be consumer-electronics pioneers, Mr. Perkes had set
ambitious goals for his product: first-year sales of the WorldVision in the
tens of thousands of units, with revenue nearing $30 million. In the end, he
didn't come close. Shipments in the first 15 months barely reached 1,200 sets.

Mr. Perkes has a straightforward explanation for his failure: Rather than
being synergistic with each other, PCs and TVs were more like oil and water.

"When we finally retreat to the living room, we want something with a high
entertainment value to entertain us," says Mr. Perkes. "But the Internet
wasn't enough to cause people to put a computer into their entertainment
center. There just wasn't enough entertainment value to compel people into the
proposition."

Other companies that brought out products comparable to NetTV's are also
finding slow going toward the digital living room. Gateway 2000 Inc., the
personal-computer supplier, introduced its Destination system for the living
room at around the same time NetTV came out. The product, which carried a
price tag of up to $5,000, included a cutting-edge PC and a large, high-
quality monitor.

Bill Graber, marketing manager for the product, won't disclose sales figures,
though he says the company is satisfied with its results so far. But he also
makes it clear that the road to the converged living room is a bumpy one.

"The original concept is proving to be true -- the migration of computer
technology into the entertainment and consumer market is happening," he says.
"But it's a slow-growth curve, and there are a lot of pieces that still need
to be filled in."

Among those pieces, says Mr. Graber, is PC software that is both easier to use
and more reliable. "TVs always turn on, and they hardly ever fail," he says.
"But with computers, there still are a lot of those issues."

Analysts agree with Mr. Graber about the long haul to the converged living
room. Consider one of the success stories of TV-Internet integration --
Microsoft Corp.'s WebTV, which has 300,000 customers, more than quadruple the
figure from a year earlier. The $200 set-top device provides TV watchers
access to the Internet and e-mail. While WebTV's growth rate is impressive,
Mary Meeker, who follows the Internet for Morgan Stanley Dean Witter & Co. in
New York, says the much harder test is still to come. Because of a reliable
group of early adopters, she says, "there are a million people who will try
anything. And that means that nothing matters until you get beyond the first
million."

Getting those kinds of numbers will require, among other things, a better
World Wide Web, which for many people could mean a long wait. Ron Rappaport,
an analyst with Zona Research, Redwood City, Calif., says mass-market-style
entertainment applications won't be available on the Internet until high-
speed, nonstop connections are available to far more American homes than now
have them.

Numerous technologies are now vying to provide those connections, from cable
modems to digital service from phone companies. But Mr. Rappaport says the
uncertainties about each approach are such that he won't predict when any of
them would be available in the majority of U.S. households.

Version 2.0

Of course, there's one big caveat to predictions of failure: The fact that a
product flopped in an earlier incarnation doesn't mean it can't make it the
second time around. For example, even with the Newton debacle in people's
memories, 3Com Corp. had a huge hit with its pager-size PalmPilot by focusing
on a smaller range of tasks and emphasizing how easily the unit could share
information with a PC.

And, despite the decades of broken promises involving videophones, there is
now a burgeoning videophone scene on the Internet, thanks to cheaper hardware
-- a $200 camera and free software -- and a world-wide network on which to
make "calls." Plus, the Internet offers something that was missing from
earlier tries: the equivalent of a phone book that allows users to find
similarly equipped people they can call.

That fact gives hope to people like Mr. Perkes, who is trying again with his
WorldVision, albeit with a more modest business plan that targets the
education market.

And, he thinks, there's still some hope for the home market, as well. He
expects that the growing need to connect to a variety of devices and
television signals -- from digital television to digital videodisks to high-
definition TV -- will fuel interest in the kind of all-purpose monitor and
software he has been trying to sell.

And that's why, even after the past two years, he's able to say, "We have a
very bright future ahead of us."

-- Mr. Gomes is a staff reporter in The Wall Street Journal's San Francisco
bureau. Return to top of page | Format for printing

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