Following the cancellation of its Paragon ECL server and four-processor MX system projects, MIPS Computer Systems Inc, Sunnyvale, California, has reportedly abandoned plans for future machines code-named the Next Generation Personal Computer and Home Run. The latter, according to Electronic News, was to have been a combination Unix and MS-DOS machine built around MIPS’ RISC and Intel Corp iAPX-86 parts. In their place, MIPS is said to be readying Advanced Computing Environment-compliant desktops dubbed After Shock, Future Shock and R4000DT, built around its R4000 RISC and due around the middle of next year. Following MIPS’ last quarter net loss and plans for staff reductions, US analysts are questioning the company’s ability to keep its head above water until sales of these new machines kick in to its revenue stream. The paper believes MIPS was prompted to bet the company’s future on ACE-compliant desktop business by stiff competition from the likes of Hewlett-Packard Co and IBM Corp that has impacted its traditional server business. MIPS admits that new desktop business based on the ACE machines is likely to challenge its traditional server base as the core element of its systems strategy over the next couple of years. However the shift in emphasis will bring it up squarely against the giants of the Unix workstation crowd, including Sun Microsystems Inc, Hewlett-Packard, Silicon Graphics Inc and Digital Equipment Corp, where competition will be much fiercer. Its current offerings go from an $8,000 19 MIPS desktop to a $200,000 55 MIPS server which run the firm’s proprietary RiscOS Unixalike: this will be phased out as the ACE operating systems being developed by Santa Cruz Operation Inc and Microsoft Corp roll out. The high end of MIPS’ server bsuiness has been plagued by problems with the ECL R6000 CPU supplied by its semiconductor partner Bipolar Integrated Technology Inc. MIPS is scheduled to announce new products during the first week of October based on the new 64-bit R4000 part.