The Economist June 9, 1979 Family computers; Going cheap SECTION: BUSINESS, ECONOMICS AND SCIENCE; SCIENCE AND TECHNOLOGY; Pg. 106 LENGTH: 620 words DATELINE: San Mateo No less than seven new personal computers were launched in the United States last week, including the long-awaited entry to this market of Texas Instruments with a system costing $1,150. RCA, Atari and APF also joined the home computer fray. A striking feature of these last three is the low price -- $400-600 -- of their products which are aimed at the family market. These cheapie computers are still bought mainly as sophisticated toys and entertainment systems for those who have grown tired of their video games (in which Atari and APF are both big producers). For those who have qualms about spending several hundred dollars on a toy, the salesmen now also push the idea of the computer as a tutor -- teaching children maths, reading, georgaphy and whatever. They are trying to promote its role in home management, organising financial records, tax returns, etc. What do people get for their money? This is often difficult to determine until after the cash has been parted with (see box). There are two basic types of family computers: those that have their own video display screen (like Texas Instruments') and those that save the cost of this (at some sacrifice in convenience) by plugging into the domestic television. Virtually all units come with a keyboard and a varying number of sockets, for game-playing controls and for other peripherals such as cassette memory and printers. The serious customer often finds himself having to come back to buy extra memory or other accessories, if he wants to do much more than play video games. Most systems look alike, but their innards differ. TI's computer, called the TI-99/4, contains circuitry providing 16,000 words of storage, which matches other systems in the $1,000 range from market leaders, Radio Shack and Apple. This is one of the critical specifications of the computer, since it determines how much data can be held in its main memory. TI's other (fairly standard) features include the ability to produce sound effects (eg, musical tones) and 16-colour graphic displays. Its programming language is a form of Basic, which is the easiest language for the beginner. All in all, the TI computer is probably less innovative than some people expected. But two of its features are unique in home computers. First, the computer can talk -- it has a vocabulary of 200 words (so far no programme is being offered that makes use of this novelty, but such programmes will follow). Second, programmes will be stored in plug-in solid state chips, not in the cassette tapes that most home computers use today. The chips will cost about the same as cassettes, but will be tougher (ie, more childproof) and will not require a cassette deck for winding. Atari will introduce two home computers later this year. One, selling for $1,000, will beat TI in storing up to 48,000 words of memory; the other is priced down mrket at $550, with 8,000 words of memory. Atari is offering a novel keyboard in which sensors under the board register the touch on the keypads above. This should make for a resilient board, well-suited for use by children, but it would slow down most typists. APF and RCA are offering computers even cheaper than Atari's selling at under $500 and under $400 respectively. Many observers think the market is not yet ready for the cheap family computer. It is interesting that TI has pitched its machine at the higher end. TI is known to have developed a second machine, to be priced at around $500, but has chosen not to launch it yet. There may still be problems in getting approval from the Federal Communications Commission to link this unit to the television.