Electronic News, Dec 12, 1983 v29 n1475 p86 


Milton Bradley Scraps Voice Module. M. Halper. 

Abstract: Milton Bradley has decided not to market a voice recognition device for
the Texas Instruments 99-4A home computer. Earlier in 1983 Milton Bradley filed a
$43 million law suit against Atari for failing to honor an agreement for the purchase
of the same device. Sales for the first nine months of 1983 were $242 million with
earnings of $42,000. The low earnings were caused by the problems Milton Bradley had
with the voice module. 

Full Text: COPYRIGHT Electronic News Publishing Corporation 1983 

SPRINGFIELD, Mass. -- Milton Bradley has abandoned hopes of selling a voice
recognition module into the TI 99/4A home computer aftermarket, after shutting down
production of the device and informing General Instrument that it no longer needs
the custom speech chip GI had been supplying. 

It could not be learned how Milton Bradley and GI resolved their supply agreement,
or whether Milton Bradley returned any excess inventory to GI.  There had been
conjecture that Milton Bradley would continue to make the voice product, despite
TI's withdrawal from the home computer market, and target sales at an installed
99/4A base through its own marketing network.  Under an earlier agreement
(EN, Dec. 27, 1982), TI was to market the device, but its exit from the home computer
business led to the collapse of those plans, and Milton Bradley officials decided the
marketing chore was too large to handle on their own. The termination of the TI
business was the second time this year Milton Bradley has lost a major commitment for
the voice device, and came as a direct blow to its electronics expansion tack of
piggybacking onto more expansive marketing networks operated by other consumer
electronics firms. 

$43M Suit 
Earlier this year, Milton Bradley filed a $43 million breach of contract suit
against Atari, alleging that Atari had failed to fulfill an agreement to purchase the
voice module for the Atari 2600 and 5200 video game (EN, Aug. 8). The company's
hardship with the voice module are said to have played a key role in depressing
corporate earnings this year. Through the nine months that ended on Sept. 30, Milton
Bradley earned $42,000 on sales of $242.876 million, compared with earnings and
sales, respectively, of $15.468 million and $250.849 million in the like period last
year.  The voice module and accompanying software allow the 99/4A user to give
spoken commands to computer and video game programs. Its hardware includes a
64-position key-pad with a different overlay for each game cartridge, a three-axis
joystick, and a headset microphone. The TI/Milton Bradley agreement called for Milton
Bradley to make the hardware and develop the software, and for TI to make software.
All products were to bear both company's logos, and were to be available in mid-year
1983. After several delays, product began trickling out to the market recently.
A Milton Bradley spokesman confirmed "We stopped production immediately after TI's
announcement." He said the company had started production two weeks before learning
of TI's exit, and declined to quantify how many units it shipped to TI. One analyst
said early plans called for Milton Bradley to ship 170,000 units to TI in 1983. A TI
spokesman said the company purchased "a small number" of voice modules. Both
companies said last week that they have reached a termination agreement, but declined 
to disclose financial terms, or elaborate on whether TI is compensating Milton
Bradley for product committed to but never purchased. 

Mutual Satisfaction 
A Milton Bradley spokesman said last week "We believe we reached a settlement to the
satisfaction of everybody," and TI noted the agreement with Milton Bradley "has been
terminated to the mutual satisfaction of both companies." The Milton Bradley
spokesman declined to discuss plans for the disposal of inventory, but TI said the
hardware "will be principally disposed of by Milton Bradley and TI internally
through employe sales." In the software area, the spokesman said "Software already
in production will be completed." He added Milton Bradley developed 10 titles for use
with the system, and of those, three could be used only in conjunction with it. Those
three, he said, "will also be disposed of through employe sales by both companies."
The remaining seven titles, which can be used with the voice system but do not rely
on it, will be offered "both internally and through retail channels until current
inventories are sold," he said. The TI spokesman also confirmed that both TI and
Milton Bradley are "discussing a licensing arrangement for the software," but did not
indicate which companies are considered candidates to license the Milton Bradley
-developed software. Meanwhile, Milton Bradley's suit against Atari still is pending
in U.S. District Court here, where it is not expected to be heard by the end of the
year. 

Joint Efforts 
Milton Bradley's interest in making a voice module add-on began, sources said, after
it scrapped plans to market a home computer that it had brought through the
development stages last year. The company decided against the home computer, it was
said, as home computer prices began falling near and under $200. At that time,
Milton Bradley decided to expand in the home computer market via joint efforts for
marketing peripherals, such as the voice module.  Ironically, the firm's interest in
home computers began about 5 years ago, when it reportedly worked with TI on the
development of the 99/4A home computer. That joint effort ended when the two
companies could not agree on pricing. Milton Bradley's remaining activities in the
home electronics area include the Vectrex video game operation (see related story,
this page) and electronic games and toys, including Electronic Chess, Electronic
Stratego, Dark Tower, Alfi II, Big Trek, Electronic Battleship, Simon, and Pocket
Simon. 

Electronic News, Dec 12, 1983 v29 n1475 p86 
Milton Bradley Scraps Voice Module. M. Halper. Abstract: Milton Bradley has decided
not to market a voice recognition device for the Texas Instruments 99-4A home
computer. Earlier in 1983 Milton Bradley filed a $43 million law suit against Atari
for failing to honor an agreement for the purchase of the same device. Sales for the
first nine months of 1983 were $242 million with earnings of $42,000. The low earnings
were caused by the problems Milton Bradley had with the voice module. 

Full Text: COPYRIGHT Electronic News Publishing Corporation 1983