It is becoming embarrassingly clear that Apple Computer Inc may have missed the crucial opportunity presented by its Newton Messagepad, and that its focus over the past couple of years should have been building NewtonNet, a radio-delivered network exclusively for Newton users that would provide access to an unrivalled range of existing and new information, multimedia and other on-line users with a single point of billing – and sold the Newton at or below cost while making its money out of the network. And it sounds as if it is a mistake Microsoft Corp is not going to make: late Wednesday, UK time, the company hosted an informal lunch at its Redmond, Washington headquarters at which it talked about this, that and a lot of the other, and chairman Bill Gates observed that Microsoft is considering whether to launch or participate in an on-line computer dial-up service, partly as a means of distributing information and software. We’re looking at whether to work with other people or do something on our own, Gates said, adding that part of Microsoft’s goal in running or joining such services would be that they might provide a reason to have people to dial in and get information about our products. Last week, Gates said after a conference with financial analysts that the company was looking into various systems for delivering information, including dial-up and emerging cable and wireless connections, but had not decided on which systems were worth pursuing in future products. Gates also expressed his surprise at the rate at which multimedia alliances were being forged. The feeding frenzy – the Gold Rush – on digital convergence surprises me, he said, adding that he was willing to participate in alliances and joint-venture deals to explore new technologies as software, computer, media, publishing, telephone and cable companies sorted out opportunities on the emerging information highway. You will see us enter all kinds of partnerships in the next year, he said, some simply pilot tests and some of these will be hard core joint ventures. Last week, Reuter notes, Microsoft showed off its most advanced prototype of the futuristic systems yet, showing how consumers might buy toys out of a video mall of their own design or order record ings after checking their friends’ favourite songs. He reckons the industry’s first significant pilot tests will be run in 1995, with actual products avail able starting in that year but gaining momentum into 1996 and 1997. Microsoft will spend $50m on research into the new technology this year and Gates has budgeted for a staff of 200 to work under Nathan Myhr vold, senior vice-president of advanced technology. Gates said talks with Tele-Communications Inc and Time-Warner Inc to form a venture dubbed CableSoft had not resulted in agreement, but said Microsoft has spoken with scores of computer, telephone and cable firms. Every significant cable company, all the top 10 – have been here.
