1 00:00:04,400 --> 00:00:07,800 Speaker 1: Welcome to tech Stuff, a production from I Heart Radio. 2 00:00:12,119 --> 00:00:14,920 Speaker 1: Hey there, and welcome to tech Stuff. I'm your host, 3 00:00:15,040 --> 00:00:18,120 Speaker 1: Jonathan Strickland. I'm an executive producer with I Heart Radio 4 00:00:18,160 --> 00:00:23,400 Speaker 1: and I love all things tech and Back in three 5 00:00:23,920 --> 00:00:27,600 Speaker 1: a new video game console created by the founder of 6 00:00:27,640 --> 00:00:32,560 Speaker 1: Electronic Arts launched, and just three years later that console 7 00:00:32,880 --> 00:00:36,440 Speaker 1: would be discontinued and essentially taken off the market. It 8 00:00:36,479 --> 00:00:39,559 Speaker 1: was a massive failure. The company that made the console 9 00:00:40,120 --> 00:00:44,280 Speaker 1: would stick around a little longer, ultimately closing up shop 10 00:00:44,280 --> 00:00:48,279 Speaker 1: in two thousand three. This is the story of the 11 00:00:48,360 --> 00:00:52,760 Speaker 1: three d O Company and the console that wasn't meant 12 00:00:52,800 --> 00:00:56,120 Speaker 1: to be. Now, for this episode, We're going to focus 13 00:00:56,160 --> 00:01:00,840 Speaker 1: a lot early on at some prehistoric and Eastern terms 14 00:01:00,880 --> 00:01:04,160 Speaker 1: of three d OH information, because I think it's helpful 15 00:01:04,160 --> 00:01:07,800 Speaker 1: to get an understanding of the man who championed the 16 00:01:07,840 --> 00:01:10,320 Speaker 1: idea of the three d O to kind of see 17 00:01:10,360 --> 00:01:13,360 Speaker 1: where he was coming from, what his thought process was. 18 00:01:13,800 --> 00:01:17,120 Speaker 1: If I just focused on the console or even the 19 00:01:17,160 --> 00:01:21,880 Speaker 1: company all by itself, it would be kind of unusual, strange. 20 00:01:21,920 --> 00:01:25,960 Speaker 1: You wouldn't understand why anyone would make these decisions. So 21 00:01:26,000 --> 00:01:28,920 Speaker 1: it's helpful to have the background. Also, I just think 22 00:01:29,400 --> 00:01:32,880 Speaker 1: it's kind of an an interesting story with lots of 23 00:01:33,000 --> 00:01:38,360 Speaker 1: ups and downs. And that story begins with William M. Hawkins, 24 00:01:38,720 --> 00:01:42,840 Speaker 1: the third a k a. Trip Hawkins. He was born 25 00:01:42,880 --> 00:01:46,920 Speaker 1: in nineteen fifty four. He grew up in California, and 26 00:01:47,080 --> 00:01:51,360 Speaker 1: his mother, Dr. Helen Hawkins, was a producer and host 27 00:01:51,560 --> 00:01:54,760 Speaker 1: at a California public broadcast station. She was also a 28 00:01:54,800 --> 00:02:01,000 Speaker 1: prominent feminist and a publications director, very much a influential woman. 29 00:02:01,480 --> 00:02:05,200 Speaker 1: And his father, William Hawkins Jr. Had earned a degree 30 00:02:05,240 --> 00:02:08,680 Speaker 1: in physics before becoming a sales and marketing executive for 31 00:02:08,840 --> 00:02:13,079 Speaker 1: various companies in California, primarily those in the tech sector. 32 00:02:13,639 --> 00:02:16,960 Speaker 1: In the late fifties and then into the sixties. Trips 33 00:02:17,000 --> 00:02:20,400 Speaker 1: father would take a job with a company called Spectral 34 00:02:20,639 --> 00:02:26,000 Speaker 1: Dynamics Corporation, which employed another person who will be an 35 00:02:26,000 --> 00:02:30,160 Speaker 1: important figure early on for the young Trip, that being 36 00:02:30,240 --> 00:02:34,320 Speaker 1: a man named Lane Hawk. But we'll get back to him. So, 37 00:02:34,560 --> 00:02:38,679 Speaker 1: as a kid, Trip loved games, not just playing them, 38 00:02:38,720 --> 00:02:42,359 Speaker 1: but kind of learning how they worked right, What were 39 00:02:42,360 --> 00:02:46,280 Speaker 1: the mechanics behind the games? What was the theory behind 40 00:02:46,280 --> 00:02:49,600 Speaker 1: the games? What led to making a game a fun 41 00:02:49,639 --> 00:02:54,639 Speaker 1: playing experience? You know, it's not easy to develop an 42 00:02:54,639 --> 00:02:59,080 Speaker 1: actual game that is rewarding that balances everything out, and 43 00:02:59,120 --> 00:03:03,200 Speaker 1: he was really interested in that model, and when in 44 00:03:03,280 --> 00:03:05,959 Speaker 1: high school, he would attempt to make his own version 45 00:03:06,960 --> 00:03:09,839 Speaker 1: of various types of games, like he would take inspiration 46 00:03:09,919 --> 00:03:12,600 Speaker 1: from games that existed that he enjoyed and try to 47 00:03:12,600 --> 00:03:15,880 Speaker 1: make his own. He was particularly interested in games that 48 00:03:16,000 --> 00:03:21,880 Speaker 1: simulated sports. He himself loved sports, and so these games 49 00:03:21,919 --> 00:03:24,400 Speaker 1: kind of gave him an outlet to kind of imagine 50 00:03:24,480 --> 00:03:28,239 Speaker 1: himself being part of, like a top class athletic team. 51 00:03:28,280 --> 00:03:32,760 Speaker 1: According to later interviews, Hawkins enjoyed board games but saw 52 00:03:32,800 --> 00:03:36,120 Speaker 1: that many of his friends preferred to spend their spare 53 00:03:36,160 --> 00:03:40,360 Speaker 1: time watching stuff on television, and during a visit to 54 00:03:40,440 --> 00:03:44,840 Speaker 1: the home of his father's coworker that the aforementioned Lane Hawk, 55 00:03:45,400 --> 00:03:49,280 Speaker 1: he saw something that would spark his imagination for a 56 00:03:49,560 --> 00:03:53,440 Speaker 1: future industry. So Lane was fascinated with games as well, 57 00:03:53,520 --> 00:03:57,320 Speaker 1: just like young Trip Hawkins. And he was also really 58 00:03:57,360 --> 00:04:00,400 Speaker 1: into computer systems, which at the time were not a 59 00:04:00,440 --> 00:04:04,120 Speaker 1: consumer product. This is the early seventies. This was even 60 00:04:04,160 --> 00:04:08,400 Speaker 1: before there were hobbyist kits to purchase. Lane had spent 61 00:04:08,600 --> 00:04:11,960 Speaker 1: a lot of money, like more than five grand, which 62 00:04:11,960 --> 00:04:15,080 Speaker 1: in the nineteen seventies, wasn't even more princely some than 63 00:04:15,160 --> 00:04:17,560 Speaker 1: we would think of today, And five thousand dollars is 64 00:04:17,600 --> 00:04:19,560 Speaker 1: a lot of money, but he spent that to buy 65 00:04:19,640 --> 00:04:23,880 Speaker 1: what today would be an incredibly primitive mini computer. But 66 00:04:23,880 --> 00:04:26,400 Speaker 1: at the time it was well, it was kind of 67 00:04:26,560 --> 00:04:28,800 Speaker 1: showing its age at the time, but it was at 68 00:04:28,839 --> 00:04:30,640 Speaker 1: one point state of the art. It was called the 69 00:04:30,720 --> 00:04:34,320 Speaker 1: PDP eight. Now, when this computer first debuted in the 70 00:04:34,400 --> 00:04:37,760 Speaker 1: nineteen sixties, when it really was, you know, cutting edge 71 00:04:37,760 --> 00:04:42,000 Speaker 1: type of technology, it costs a whopping eighteen thousand, five 72 00:04:42,080 --> 00:04:47,320 Speaker 1: hundred dollars, but this was well beyond the heyday of 73 00:04:47,400 --> 00:04:50,640 Speaker 1: the PDP eight. And it was also a really big computer. 74 00:04:50,760 --> 00:04:53,359 Speaker 1: It was like the size of like a cabinet, like 75 00:04:53,400 --> 00:04:57,120 Speaker 1: a wardrobe, or a small refrigerator. It was a twelve 76 00:04:57,240 --> 00:04:59,840 Speaker 1: bit machine, meaning it could handle a range of in 77 00:05:00,120 --> 00:05:04,400 Speaker 1: jurors from zero to four thousand ninety five, or you 78 00:05:04,440 --> 00:05:07,560 Speaker 1: could do from negative two thousand forty eight to two 79 00:05:07,560 --> 00:05:11,120 Speaker 1: thousand forty seven. Zero would be taking up that pesky 80 00:05:11,200 --> 00:05:14,440 Speaker 1: spot in the middle. And programming for the machine was, 81 00:05:14,600 --> 00:05:18,719 Speaker 1: from what I understand anyway, not intuitive. It was not 82 00:05:18,800 --> 00:05:21,760 Speaker 1: an easy thing to program for. But Lane wanted something 83 00:05:21,800 --> 00:05:24,159 Speaker 1: that he could kind of work on in his spare 84 00:05:24,240 --> 00:05:27,080 Speaker 1: time to putter around with. It was almost like a 85 00:05:27,120 --> 00:05:30,400 Speaker 1: project car for someone who's a gear head. For Lane, 86 00:05:30,680 --> 00:05:34,240 Speaker 1: it was a PDP eight and he hooked up this 87 00:05:34,279 --> 00:05:38,160 Speaker 1: computer to a teletype printer. There was no display, There 88 00:05:38,240 --> 00:05:41,279 Speaker 1: was no monitor for the PDP eight, so you couldn't, 89 00:05:41,560 --> 00:05:43,040 Speaker 1: you know, look at a screen and see what you 90 00:05:43,080 --> 00:05:46,440 Speaker 1: were working on. And instead you used a teletype printer 91 00:05:46,720 --> 00:05:50,280 Speaker 1: and the printer would print out the information that you 92 00:05:50,320 --> 00:05:52,200 Speaker 1: were working on. With the computer, you would read it, 93 00:05:52,240 --> 00:05:54,279 Speaker 1: you would make changes, it would print on a new page. 94 00:05:54,480 --> 00:05:58,080 Speaker 1: It's a pretty painstaking process. Well, Lane created a game 95 00:05:58,160 --> 00:06:03,080 Speaker 1: he called MoU Oo, as in what cows say, at 96 00:06:03,120 --> 00:06:05,920 Speaker 1: least in the United States, and the game was pretty simple. 97 00:06:06,200 --> 00:06:09,400 Speaker 1: The game would generate a four digit number and it 98 00:06:09,400 --> 00:06:11,640 Speaker 1: would keep that number secret. So the game has a 99 00:06:11,680 --> 00:06:14,599 Speaker 1: four digit number and it was your job as the 100 00:06:14,640 --> 00:06:18,200 Speaker 1: player to figure out what that four digit number was, 101 00:06:18,320 --> 00:06:20,960 Speaker 1: and you would submit your own guests. You would put 102 00:06:21,000 --> 00:06:23,520 Speaker 1: in a four digit number and the computer would tell 103 00:06:23,520 --> 00:06:26,640 Speaker 1: you how many digits, if any, you got right, and 104 00:06:26,680 --> 00:06:29,039 Speaker 1: whether or not any of those digits were in the 105 00:06:29,160 --> 00:06:33,640 Speaker 1: right place. So let's say that the secret number the 106 00:06:33,640 --> 00:06:37,760 Speaker 1: computer comes up with is eight to nine five, and 107 00:06:37,839 --> 00:06:42,160 Speaker 1: my guess is one five nine three. The system would 108 00:06:42,160 --> 00:06:44,880 Speaker 1: tell me I got one correct digit in the right 109 00:06:44,920 --> 00:06:48,120 Speaker 1: location because I got the nine correct and it's in 110 00:06:48,160 --> 00:06:51,320 Speaker 1: the right spot. And I got a second digit correct, 111 00:06:51,800 --> 00:06:55,000 Speaker 1: but it's not in the right spot. My five is 112 00:06:55,040 --> 00:06:58,839 Speaker 1: in the wrong position of that four digit number. So 113 00:06:58,880 --> 00:07:01,280 Speaker 1: it's similar to a board game that would come out 114 00:07:01,279 --> 00:07:04,960 Speaker 1: a little later called Mastermind. That one uses colors, not numbers, 115 00:07:05,000 --> 00:07:08,839 Speaker 1: but it's a similar idea. Now, move did this using 116 00:07:09,000 --> 00:07:12,280 Speaker 1: moves and cows. A cow would indicate that you had 117 00:07:12,640 --> 00:07:14,680 Speaker 1: the right digit, but it was in the wrong place. 118 00:07:15,040 --> 00:07:17,760 Speaker 1: A move would indicate that you had a right digit, 119 00:07:18,000 --> 00:07:20,320 Speaker 1: but and it was in the right place. But you 120 00:07:20,320 --> 00:07:22,440 Speaker 1: wouldn't be told which one was which right. You wouldn't 121 00:07:22,440 --> 00:07:25,120 Speaker 1: be told which of the digits was the correct one. 122 00:07:25,480 --> 00:07:27,480 Speaker 1: You would just know, Oh, I've got, you know, two 123 00:07:27,520 --> 00:07:31,640 Speaker 1: moves and a cow, and then my fourth digit is wrong. 124 00:07:31,720 --> 00:07:35,280 Speaker 1: So I've got to start changing this out and narrowing 125 00:07:35,360 --> 00:07:38,800 Speaker 1: down what that four digit number could possibly be. And 126 00:07:39,680 --> 00:07:41,320 Speaker 1: I assume you had to do it in a certain 127 00:07:41,400 --> 00:07:45,360 Speaker 1: number of turns, But none of my research found anything 128 00:07:45,400 --> 00:07:48,840 Speaker 1: about that. But for our story, The important part is 129 00:07:48,880 --> 00:07:52,200 Speaker 1: when Trip Hawkins saw Lanes set up, something must have 130 00:07:52,240 --> 00:07:55,640 Speaker 1: switched on in Trip's brain. He saw the potential for 131 00:07:55,680 --> 00:07:59,880 Speaker 1: computers to bring together the world's of television and bore 132 00:08:00,080 --> 00:08:03,040 Speaker 1: to games. He imagined a world where one day people 133 00:08:03,080 --> 00:08:07,120 Speaker 1: could play games on computers with displays, and that's what 134 00:08:07,200 --> 00:08:10,400 Speaker 1: he wanted to do. He wanted to make games for computers. 135 00:08:11,200 --> 00:08:14,400 Speaker 1: There was no real way to do that at that time. 136 00:08:14,440 --> 00:08:17,040 Speaker 1: There was no way for the average consumer to even 137 00:08:17,080 --> 00:08:20,680 Speaker 1: get hold of a computer at that stage, but Hawkins 138 00:08:20,720 --> 00:08:23,040 Speaker 1: was certain this was where things were going to go, 139 00:08:23,880 --> 00:08:26,720 Speaker 1: and Lane Hawk would go on to develop some early 140 00:08:26,920 --> 00:08:31,200 Speaker 1: arcade games, but that's a story for another time. According 141 00:08:31,200 --> 00:08:35,280 Speaker 1: to Trip Hawkins himself, around nineteen seventy five, he laid 142 00:08:35,320 --> 00:08:38,080 Speaker 1: out a long term plan that would lead towards the 143 00:08:38,120 --> 00:08:41,800 Speaker 1: founding of a computer game company by the year nineteen 144 00:08:41,920 --> 00:08:45,080 Speaker 1: eighty two, but he had a lot of challenges to 145 00:08:45,120 --> 00:08:49,760 Speaker 1: overcome to actually make that happen. Now. He applied and 146 00:08:49,880 --> 00:08:53,439 Speaker 1: was accepted at Harvard and he was a student there 147 00:08:53,440 --> 00:08:56,080 Speaker 1: in the early nineteen seventies, and he wanted to work 148 00:08:56,120 --> 00:08:58,760 Speaker 1: in an industry that just didn't exist yet, and that 149 00:08:58,840 --> 00:09:01,480 Speaker 1: also meant he face a love challenges when it came 150 00:09:01,520 --> 00:09:03,800 Speaker 1: to his studies. It's not like there were degrees and 151 00:09:03,840 --> 00:09:06,200 Speaker 1: what he wanted to do, because the thing he wanted 152 00:09:06,240 --> 00:09:09,960 Speaker 1: to do wasn't a thing yet. So he started to 153 00:09:10,040 --> 00:09:13,440 Speaker 1: kind of put together his studies in a piecemeal fashion, 154 00:09:13,960 --> 00:09:17,480 Speaker 1: you know, taking classes and computer science and programming and 155 00:09:17,520 --> 00:09:21,360 Speaker 1: related topics. And at the end of his stay at 156 00:09:21,400 --> 00:09:25,760 Speaker 1: Harvard he hadn't just earned a degree, he had essentially 157 00:09:25,840 --> 00:09:31,040 Speaker 1: invented a degree in applied game theory and design. Hawkins 158 00:09:31,080 --> 00:09:35,240 Speaker 1: then went on to pursue postgraduate work at Stanford, where 159 00:09:35,240 --> 00:09:39,800 Speaker 1: he earned an NBA in nineteen seventy eight. By this time, 160 00:09:39,960 --> 00:09:44,040 Speaker 1: technology was slowly starting to build the foundation that Hawkins 161 00:09:44,040 --> 00:09:46,720 Speaker 1: would need to pursue his dream of creating a video 162 00:09:46,760 --> 00:09:51,079 Speaker 1: game company. UH the twenty hundred he debuted the year 163 00:09:51,120 --> 00:09:53,680 Speaker 1: before he got his m b A, and that took 164 00:09:53,720 --> 00:09:56,520 Speaker 1: a leading position in the new field of home video 165 00:09:56,559 --> 00:09:59,760 Speaker 1: game consoles. That same year, in nineteen seventy seven, Apple 166 00:09:59,760 --> 00:10:03,440 Speaker 1: would unveil the Apple two computer, which was the first 167 00:10:03,440 --> 00:10:07,400 Speaker 1: personal computer from Apple that took aim beyond the relatively 168 00:10:07,480 --> 00:10:11,360 Speaker 1: small harp hobbyist market. The original Apple computer was a 169 00:10:11,440 --> 00:10:15,360 Speaker 1: kit you might even see pictures of old Apple one 170 00:10:15,440 --> 00:10:21,400 Speaker 1: computers in wooden cabinets. That's the original Apple. But the 171 00:10:21,440 --> 00:10:26,120 Speaker 1: Apple two was the first real consumer personal computer, and 172 00:10:26,320 --> 00:10:28,680 Speaker 1: it was still too soon for Hawkins to really pursue 173 00:10:28,720 --> 00:10:31,920 Speaker 1: his plans to make a video game company. In addition, 174 00:10:32,320 --> 00:10:35,760 Speaker 1: while in college, Hawkins had made, marketed, and sold his 175 00:10:35,800 --> 00:10:39,199 Speaker 1: own board game after taking a loan from his father. 176 00:10:39,600 --> 00:10:42,960 Speaker 1: His father loaned him the princely some of five thousand dollars, 177 00:10:42,960 --> 00:10:47,960 Speaker 1: which again that's a lot of money. And people liked 178 00:10:48,200 --> 00:10:51,839 Speaker 1: the game that Hawkins made, but there weren't enough people 179 00:10:51,880 --> 00:10:54,720 Speaker 1: who actually bought it to make it a success. It 180 00:10:54,800 --> 00:10:58,160 Speaker 1: was a failure. And that failure, I think convinced Hawkins 181 00:10:58,200 --> 00:11:01,200 Speaker 1: that he really needed to be methought iCal and patient 182 00:11:01,400 --> 00:11:04,319 Speaker 1: before launching his business. It would be a bad idea 183 00:11:04,400 --> 00:11:07,600 Speaker 1: to rush into things. He had already seen what you know, 184 00:11:08,240 --> 00:11:11,280 Speaker 1: a misstep could do. It could be a very expensive mistake. 185 00:11:11,760 --> 00:11:15,760 Speaker 1: So Hawkins would conduct the first complete study of the 186 00:11:15,800 --> 00:11:21,240 Speaker 1: personal computer market in nine and that's back when it 187 00:11:21,240 --> 00:11:22,960 Speaker 1: was a very young field. There were a lot of 188 00:11:23,000 --> 00:11:27,360 Speaker 1: different computers out there, the Apples, the trs a D 189 00:11:27,520 --> 00:11:30,720 Speaker 1: or trash a D computer, the you know, the Tandy, 190 00:11:31,000 --> 00:11:34,680 Speaker 1: the Commodore sixty four. Those were coming out around this time, 191 00:11:34,720 --> 00:11:37,880 Speaker 1: some of them a little later, and he started to 192 00:11:37,880 --> 00:11:40,920 Speaker 1: get a feel for where things were headed and how 193 00:11:40,960 --> 00:11:42,880 Speaker 1: he might best be able to take part in a 194 00:11:42,960 --> 00:11:47,880 Speaker 1: technological revolution. While in school, he attended a computer fair 195 00:11:47,920 --> 00:11:50,960 Speaker 1: and he actually saw the Apple two debut in person. 196 00:11:51,000 --> 00:11:54,319 Speaker 1: He was at that computer fair and he decided that 197 00:11:54,400 --> 00:11:58,800 Speaker 1: he would apply to work for a computer company upon graduating, 198 00:11:59,280 --> 00:12:01,880 Speaker 1: and he did. He applied to a lot of different places, 199 00:12:02,559 --> 00:12:05,800 Speaker 1: and the one that gave him an offer that he 200 00:12:05,960 --> 00:12:09,839 Speaker 1: accepted was Apple. The company was happy to bring him 201 00:12:09,840 --> 00:12:12,760 Speaker 1: on board. He was the first MBA in the company, 202 00:12:12,920 --> 00:12:15,880 Speaker 1: which he joking Lee said, is always a scary thing. 203 00:12:15,960 --> 00:12:19,720 Speaker 1: You never want to be the first NBA in a company. 204 00:12:19,760 --> 00:12:22,559 Speaker 1: But he joined when there were somewhere between twenty five 205 00:12:22,559 --> 00:12:26,640 Speaker 1: and fifty people working there. Sources don't fully agree on this, 206 00:12:26,960 --> 00:12:28,959 Speaker 1: which is often the case when I researched stuff in 207 00:12:29,000 --> 00:12:32,360 Speaker 1: computer history, though Hawkins himself has said there were about 208 00:12:32,480 --> 00:12:37,360 Speaker 1: fifty employees. However, twenty five of them were primarily responsible 209 00:12:37,400 --> 00:12:41,440 Speaker 1: for physically assembling the computers, so maybe really the sources 210 00:12:41,600 --> 00:12:43,679 Speaker 1: kind of agree. It's just that some of the sources 211 00:12:44,320 --> 00:12:47,160 Speaker 1: ignore the assembly line workers and only focus on the 212 00:12:47,200 --> 00:12:50,320 Speaker 1: you know, the Apple management and officers. That seems a 213 00:12:50,320 --> 00:12:53,240 Speaker 1: bit elitist to me, but maybe that's what's going on anyway. 214 00:12:53,280 --> 00:12:56,000 Speaker 1: This was right as the Apple two started to get 215 00:12:56,040 --> 00:13:00,760 Speaker 1: some traction. As one of the earliest successful personal computers 216 00:13:00,800 --> 00:13:04,600 Speaker 1: that was available on the market. At Apple, Hawkins would 217 00:13:04,600 --> 00:13:07,600 Speaker 1: gain a lot of real world experience while taking on 218 00:13:07,679 --> 00:13:12,000 Speaker 1: an increasing amount of responsibility. He helped guide Apple's efforts 219 00:13:12,040 --> 00:13:16,320 Speaker 1: to getting computers into workplaces, and he encouraged the development 220 00:13:16,360 --> 00:13:20,440 Speaker 1: of various productivity applications like spreadsheet programs. Hawkins has said, 221 00:13:20,520 --> 00:13:23,520 Speaker 1: quote I didn't invent the spreadsheet, but I did bring 222 00:13:23,559 --> 00:13:27,080 Speaker 1: the first spreadsheet apps into Apple end quote. This would 223 00:13:27,120 --> 00:13:30,240 Speaker 1: allow Apple to compete in markets where previously IBM was 224 00:13:30,320 --> 00:13:34,040 Speaker 1: really the king of the castle. Four years after joining 225 00:13:34,080 --> 00:13:38,559 Speaker 1: Apple Trip, Hawkins was the director of Strategy and Marketing, Which, 226 00:13:38,679 --> 00:13:40,760 Speaker 1: you know, that's a heck of an achievement to go 227 00:13:40,920 --> 00:13:43,679 Speaker 1: to a director level position within four years, even if 228 00:13:43,720 --> 00:13:46,439 Speaker 1: you and you know, take into account the fact that 229 00:13:46,480 --> 00:13:49,560 Speaker 1: the office staff had really only numbered twenty five employees 230 00:13:49,559 --> 00:13:52,480 Speaker 1: when he joined the company and Apple had just held 231 00:13:52,559 --> 00:13:56,679 Speaker 1: its initial public offering, and that ended up making Hawkins 232 00:13:56,720 --> 00:14:01,679 Speaker 1: a pretty healthy amount of cash. But this means that 233 00:14:01,720 --> 00:14:04,760 Speaker 1: we were just getting up to two. And if you 234 00:14:04,800 --> 00:14:07,600 Speaker 1: remember what I said a little earlier in this episode, 235 00:14:08,080 --> 00:14:11,600 Speaker 1: that was the year that Hawkins had predicted way back 236 00:14:11,600 --> 00:14:15,560 Speaker 1: in n that he would launch a computer game company, 237 00:14:15,640 --> 00:14:18,680 Speaker 1: or at least that's what his plan had called for, 238 00:14:19,120 --> 00:14:23,040 Speaker 1: and other computer game companies were already getting off the 239 00:14:23,120 --> 00:14:26,560 Speaker 1: ground around this time. At home video game consoles like 240 00:14:26,600 --> 00:14:32,520 Speaker 1: the AD had spawned numerous game development companies. Hawkins made 241 00:14:32,560 --> 00:14:35,760 Speaker 1: his move to follow through on his plan that his 242 00:14:35,880 --> 00:14:39,880 Speaker 1: younger self had created, and he left Apple to found 243 00:14:39,960 --> 00:14:43,520 Speaker 1: his computer game company, now Trip. Hawkins says that at 244 00:14:43,560 --> 00:14:47,240 Speaker 1: the time, he thought video game developers were, on the 245 00:14:47,280 --> 00:14:53,120 Speaker 1: whole not treated so well. They were frequently treated like 246 00:14:53,360 --> 00:14:57,720 Speaker 1: cheap contract labor on a game by game basis, and 247 00:14:57,800 --> 00:15:01,040 Speaker 1: Hawkins aimed to create a company that turned that on 248 00:15:01,120 --> 00:15:04,680 Speaker 1: its head. And that was the birth of Electronic Arts 249 00:15:05,040 --> 00:15:07,840 Speaker 1: better known today as e A. And it was back 250 00:15:07,880 --> 00:15:12,560 Speaker 1: in two. When we come back, we'll give a super 251 00:15:12,640 --> 00:15:16,880 Speaker 1: high level overview of hawkins vision of e A and 252 00:15:17,040 --> 00:15:21,040 Speaker 1: how that would lead him to found another company, the 253 00:15:21,080 --> 00:15:32,200 Speaker 1: three D O Company. But first let's take a quick break. Today. 254 00:15:32,480 --> 00:15:35,400 Speaker 1: The name E A has I guess it's fair to 255 00:15:35,400 --> 00:15:38,200 Speaker 1: say a little bit of baggage along with it. The 256 00:15:38,240 --> 00:15:41,920 Speaker 1: company has a reputation for doing some stuff that rubs 257 00:15:42,000 --> 00:15:45,240 Speaker 1: gamers the wrong way, the big one being that it 258 00:15:45,320 --> 00:15:48,520 Speaker 1: has a history of scooping up smaller video game developers 259 00:15:48,960 --> 00:15:54,120 Speaker 1: and then kind of sapping the intellectual property those video 260 00:15:54,120 --> 00:15:58,680 Speaker 1: game developers had created and just draining it dry and 261 00:15:58,760 --> 00:16:02,280 Speaker 1: having the developers anguish a bit before shutting them down. 262 00:16:02,760 --> 00:16:05,280 Speaker 1: U e A has done this to companies like Origin, 263 00:16:05,520 --> 00:16:10,720 Speaker 1: which made The Wing Commander and Ultimate Series, Maxis Pandemic 264 00:16:10,920 --> 00:16:14,760 Speaker 1: Bull Rug Studios. The list is long. In two thousand 265 00:16:14,800 --> 00:16:18,240 Speaker 1: and twelve, e A even made headlines for a really 266 00:16:18,400 --> 00:16:22,480 Speaker 1: not super awesome reason. It was voted the worst company 267 00:16:22,600 --> 00:16:28,000 Speaker 1: in the entire United States. But back in two it 268 00:16:28,080 --> 00:16:32,680 Speaker 1: was a very different company. Hawkins said that he funded 269 00:16:32,720 --> 00:16:35,160 Speaker 1: e A out of his own pocket for the first 270 00:16:35,240 --> 00:16:38,600 Speaker 1: six months, and at the very beginning he was the 271 00:16:38,640 --> 00:16:41,640 Speaker 1: only employee and he was working out of his home 272 00:16:41,800 --> 00:16:45,440 Speaker 1: until he was able to secure some office space in California, 273 00:16:45,680 --> 00:16:48,640 Speaker 1: and then he started to hire on employees, and it 274 00:16:48,720 --> 00:16:51,560 Speaker 1: was only in October, months after he had started. He 275 00:16:51,600 --> 00:16:54,000 Speaker 1: got started in the spring of nineteen eighty two. So 276 00:16:54,040 --> 00:16:57,480 Speaker 1: the fall of nine two he got together with his 277 00:16:57,560 --> 00:17:01,520 Speaker 1: twelve employees. This is starting sound a little biblical, and 278 00:17:01,560 --> 00:17:06,240 Speaker 1: together they brainstormed up the name of the company Electronic Arts. 279 00:17:06,240 --> 00:17:09,680 Speaker 1: And Hawkins had really wanted to stress that games can 280 00:17:09,720 --> 00:17:13,399 Speaker 1: be a form of art and that video game developers 281 00:17:13,440 --> 00:17:16,640 Speaker 1: are artists and they should be recognized as such, and 282 00:17:16,800 --> 00:17:22,040 Speaker 1: Electronic Arts was born. E a's early identities centered around 283 00:17:22,119 --> 00:17:25,919 Speaker 1: compensating and crediting game developers above and beyond what the 284 00:17:25,960 --> 00:17:29,600 Speaker 1: competition offered. You know, like most video games at the time, 285 00:17:30,160 --> 00:17:32,640 Speaker 1: you had no idea who worked on that game. If 286 00:17:32,680 --> 00:17:37,040 Speaker 1: you found out, it was only because some industry magazine 287 00:17:37,160 --> 00:17:40,000 Speaker 1: wrote up an article about the person. Chances are you 288 00:17:40,080 --> 00:17:43,080 Speaker 1: just knew which titles went with which companies, if you 289 00:17:43,119 --> 00:17:46,600 Speaker 1: were even paying that close attention. Hawkins wanted to change that. 290 00:17:46,720 --> 00:17:50,720 Speaker 1: He wanted to say, no, you will start to recognize 291 00:17:50,760 --> 00:17:54,680 Speaker 1: the work of specific video game developers and the ones 292 00:17:54,760 --> 00:17:57,280 Speaker 1: that make the stuff you like, you'll know to keep 293 00:17:57,400 --> 00:18:00,639 Speaker 1: getting their stuff. That was the idea, and the company 294 00:18:00,720 --> 00:18:04,040 Speaker 1: launched early titles like Mule m u l E. It 295 00:18:04,119 --> 00:18:07,359 Speaker 1: was a combat simulation game, and Our Con, which was 296 00:18:07,440 --> 00:18:11,480 Speaker 1: one of my favorite early computer games. It was a 297 00:18:11,560 --> 00:18:15,560 Speaker 1: chess like game in which players would control pieces that 298 00:18:15,640 --> 00:18:19,600 Speaker 1: represented different sort of magical and mythological creatures and characters, 299 00:18:20,160 --> 00:18:22,359 Speaker 1: and you were trying to take control of a board 300 00:18:22,520 --> 00:18:27,919 Speaker 1: by controlling the space occupied by your opponent. So you 301 00:18:27,960 --> 00:18:31,720 Speaker 1: can move a piece into an opponent's square, and that 302 00:18:31,760 --> 00:18:36,920 Speaker 1: would initiate an arcade style dual where you would try 303 00:18:37,000 --> 00:18:41,399 Speaker 1: to beat the other player or your computer opponent in 304 00:18:41,440 --> 00:18:44,879 Speaker 1: a little arcade style game, a little shootout, and different 305 00:18:44,880 --> 00:18:47,359 Speaker 1: pieces had different abilities. Some of them were super fast 306 00:18:47,440 --> 00:18:50,760 Speaker 1: but not very powerful. Some shot very powerful beams but 307 00:18:50,880 --> 00:18:53,720 Speaker 1: moved slowly, and so on. Anyway, I'm getting off track, 308 00:18:53,800 --> 00:18:56,000 Speaker 1: but it was a great game. It's again one of 309 00:18:56,000 --> 00:18:59,119 Speaker 1: my favorites. Any ar Con fans out there give it 310 00:18:59,160 --> 00:19:01,760 Speaker 1: a shout out. The as Man that was one of 311 00:19:01,800 --> 00:19:06,960 Speaker 1: my favorite early computer games. Hawkins, however, his favorite games 312 00:19:06,960 --> 00:19:10,680 Speaker 1: were still sports titles. One early e A sports game 313 00:19:10,800 --> 00:19:14,680 Speaker 1: was Dr J and Larry Bird Go One on One, which, 314 00:19:14,720 --> 00:19:16,960 Speaker 1: if you're not you know, up on the sports ball, 315 00:19:17,280 --> 00:19:20,320 Speaker 1: it's a basketball game. Uh you know. Dr J and 316 00:19:20,600 --> 00:19:25,560 Speaker 1: Larry Bird both famous basketball players, amazing basketball players, and 317 00:19:25,640 --> 00:19:28,880 Speaker 1: Hawkins himself designed the game, or at least was very 318 00:19:28,880 --> 00:19:31,840 Speaker 1: heavily involved in the design of the game, and he 319 00:19:32,000 --> 00:19:36,080 Speaker 1: also brought both of the basketball stars into the design 320 00:19:36,200 --> 00:19:39,200 Speaker 1: phase and the marketing of the title, and that gave 321 00:19:39,200 --> 00:19:41,959 Speaker 1: it some prestige in the market to actually, you know, 322 00:19:42,040 --> 00:19:46,520 Speaker 1: attach real world athletes to this video game title. And 323 00:19:46,560 --> 00:19:48,919 Speaker 1: if you know your video game history, you also know 324 00:19:49,480 --> 00:19:52,399 Speaker 1: that this early period of e A coincided with a 325 00:19:52,680 --> 00:19:59,040 Speaker 1: catastrophic market event around the home video game market began 326 00:19:59,080 --> 00:20:03,239 Speaker 1: to wobble, and by it was in the shambles. And 327 00:20:03,280 --> 00:20:06,399 Speaker 1: I've done full episodes about the video game crash of 328 00:20:06,480 --> 00:20:10,200 Speaker 1: eight three, but the short version is that there were 329 00:20:10,200 --> 00:20:14,040 Speaker 1: a confluence of problems from a flood of bad games 330 00:20:14,040 --> 00:20:17,399 Speaker 1: by fly by Night developers. There were a series of 331 00:20:17,480 --> 00:20:21,760 Speaker 1: terrible business decisions at multiple companies. There was the overproduction 332 00:20:21,920 --> 00:20:26,720 Speaker 1: of titles that meant that the once lucrative industry imploded. 333 00:20:26,960 --> 00:20:32,200 Speaker 1: Then there are other elements to like licensing popular games 334 00:20:32,359 --> 00:20:37,800 Speaker 1: or or entertainment franchises that ended up being a cost 335 00:20:37,840 --> 00:20:40,520 Speaker 1: that you could never recoup that kind of thing. There 336 00:20:40,520 --> 00:20:43,440 Speaker 1: are a lot of really bad decisions and entire companies 337 00:20:43,480 --> 00:20:46,920 Speaker 1: disappeared within a year, and video games in general we're 338 00:20:46,960 --> 00:20:50,160 Speaker 1: seen as a failure so much so that retailers didn't 339 00:20:50,160 --> 00:20:53,399 Speaker 1: want to carry video games or video game consoles. And 340 00:20:53,440 --> 00:20:57,600 Speaker 1: it was only by kind of pivoting toward computers that 341 00:20:57,960 --> 00:21:01,800 Speaker 1: companies related to the video game space could stay afloat. 342 00:21:02,280 --> 00:21:05,320 Speaker 1: And you know, e A had primarily been developing titles 343 00:21:05,359 --> 00:21:08,560 Speaker 1: for computers, but it wasn't immune to this problem either. 344 00:21:08,920 --> 00:21:12,080 Speaker 1: The company shifted a little bit in its initial strategy. 345 00:21:12,440 --> 00:21:15,160 Speaker 1: You know again that was originally to promote games by 346 00:21:15,240 --> 00:21:19,080 Speaker 1: associating those games with the designers who made them. But 347 00:21:19,200 --> 00:21:22,400 Speaker 1: now e A was focusing more on promoting specific game 348 00:21:22,480 --> 00:21:27,000 Speaker 1: titles and making franchises out of them, rather than saying, oh, 349 00:21:27,040 --> 00:21:29,720 Speaker 1: this is a game by so and so. The company 350 00:21:29,760 --> 00:21:33,879 Speaker 1: focused exclusively on developing games for various computer platforms like 351 00:21:33,960 --> 00:21:37,920 Speaker 1: the Apple computers you know, IBM PCs, the Commodore sixty four, 352 00:21:38,040 --> 00:21:42,119 Speaker 1: and others at that time. Then Nintendo came along and 353 00:21:42,200 --> 00:21:46,600 Speaker 1: managed to do what most analysts thought was impossible. Nintendo 354 00:21:46,680 --> 00:21:50,119 Speaker 1: was able to bring consoles back from the dead. The 355 00:21:50,240 --> 00:21:53,520 Speaker 1: Nintendo Entertainment System here in the United States, also know 356 00:21:53,600 --> 00:21:58,439 Speaker 1: as the Famicom, became a Grand slam home run of 357 00:21:58,480 --> 00:22:00,919 Speaker 1: a hit. I thought I would use an analogy that 358 00:22:00,920 --> 00:22:04,480 Speaker 1: Trip Hawkins himself would probably appreciate, but it would take 359 00:22:04,520 --> 00:22:07,520 Speaker 1: many years for e A to start to develop games 360 00:22:07,520 --> 00:22:11,919 Speaker 1: for console systems in earnest because Hawkins was one he 361 00:22:12,000 --> 00:22:15,600 Speaker 1: was wary of consoles after the Crash of three and two. 362 00:22:15,640 --> 00:22:17,359 Speaker 1: He was pretty sure the PC was going to be 363 00:22:17,400 --> 00:22:21,560 Speaker 1: the future of gaming. When Sega launched the Sega Genesis 364 00:22:21,880 --> 00:22:25,120 Speaker 1: a k a. The Mega Drive in nineteen eighty nine, 365 00:22:25,320 --> 00:22:27,800 Speaker 1: at least in North America, it launched in different parts 366 00:22:27,840 --> 00:22:31,120 Speaker 1: of the world at different times. It launched in Japan earlier, 367 00:22:31,200 --> 00:22:34,439 Speaker 1: for example, but trip Hawkins would relent a bit and 368 00:22:34,480 --> 00:22:39,000 Speaker 1: negotiated a favorable but not perfect deal with Sega for 369 00:22:39,640 --> 00:22:42,440 Speaker 1: the e E for e A tow to publish games 370 00:22:42,760 --> 00:22:45,720 Speaker 1: on Sega's console, and at that point e A would 371 00:22:45,720 --> 00:22:49,360 Speaker 1: also develop a few games for the Nintendo Entertainment System 372 00:22:49,400 --> 00:22:52,240 Speaker 1: and got a little bit out of that niche market 373 00:22:52,240 --> 00:22:55,040 Speaker 1: of just developing computer games. Now we get to a 374 00:22:55,080 --> 00:22:57,080 Speaker 1: point where we start to see where the three D 375 00:22:57,240 --> 00:23:01,640 Speaker 1: O company idea starts to creep into hawkins mind. Now 376 00:23:01,680 --> 00:23:03,960 Speaker 1: to understand why Hawkins would try to get into the 377 00:23:04,000 --> 00:23:08,199 Speaker 1: console market after he had kind of grown wary of 378 00:23:08,240 --> 00:23:11,119 Speaker 1: it after the Crash of three, you have to know 379 00:23:11,160 --> 00:23:15,840 Speaker 1: a bit about the relationship between video game developers and 380 00:23:15,960 --> 00:23:19,800 Speaker 1: the companies that actually manufacture the hardware that those games 381 00:23:20,000 --> 00:23:22,800 Speaker 1: run on, the main the console manufacturers. In other words, 382 00:23:23,480 --> 00:23:27,160 Speaker 1: Sega in particular was kind of a thorn in the 383 00:23:27,200 --> 00:23:31,800 Speaker 1: industry side, particularly for Trip Hawkins. Sega would insist on 384 00:23:31,920 --> 00:23:36,080 Speaker 1: steep royalties. Now that meant that game publishers would have 385 00:23:36,119 --> 00:23:39,440 Speaker 1: to pay a certain amount of money per game sold 386 00:23:40,000 --> 00:23:43,440 Speaker 1: back to Sega in order to have the games run 387 00:23:43,480 --> 00:23:46,600 Speaker 1: on Sega machines. So let's say that you, as a consumer, 388 00:23:46,720 --> 00:23:49,119 Speaker 1: are going out to buy an e A game for 389 00:23:49,119 --> 00:23:52,440 Speaker 1: the Sega Genesis. Who is getting paid, Well, it turns 390 00:23:52,440 --> 00:23:55,520 Speaker 1: out a lot of people are getting paid. First, there's 391 00:23:55,560 --> 00:23:57,880 Speaker 1: the brick and mortar store where you bought your game, 392 00:23:58,000 --> 00:24:00,800 Speaker 1: because again this is back in the late eighties, there's 393 00:24:00,920 --> 00:24:05,040 Speaker 1: not really any other opportunity. But those merchants in turn 394 00:24:05,200 --> 00:24:08,720 Speaker 1: had to spend money to get the stock to sell 395 00:24:08,800 --> 00:24:12,920 Speaker 1: in the first place. So they would buy their copies 396 00:24:12,960 --> 00:24:15,199 Speaker 1: of the games that they sell to consumers like you 397 00:24:15,840 --> 00:24:18,760 Speaker 1: from e A or from a video game distributor. But 398 00:24:18,840 --> 00:24:22,720 Speaker 1: let's not get too complicated. E A in turn would 399 00:24:22,720 --> 00:24:26,040 Speaker 1: have to share a portion of each of those sales 400 00:24:26,080 --> 00:24:32,120 Speaker 1: two retailers back with Sega. Sega demanded high royalties, so 401 00:24:32,240 --> 00:24:35,040 Speaker 1: that meant a smaller percentage of the money would go 402 00:24:35,080 --> 00:24:37,800 Speaker 1: to e A. E A would develop the games, but 403 00:24:38,320 --> 00:24:41,040 Speaker 1: some of that money was gonna go to Sega, not 404 00:24:41,160 --> 00:24:43,840 Speaker 1: to e A. And Hawkins felt that there was a 405 00:24:43,840 --> 00:24:46,520 Speaker 1: big power imbalance there and he wanted a way to 406 00:24:46,560 --> 00:24:49,879 Speaker 1: address it. And he thought if he could make a 407 00:24:49,920 --> 00:24:54,639 Speaker 1: company that designed video game systems and he didn't impose 408 00:24:54,880 --> 00:24:59,800 Speaker 1: such high royalties on publishers, then creators would have a 409 00:25:00,040 --> 00:25:04,200 Speaker 1: later degree of freedom and a large incentive to develop 410 00:25:04,280 --> 00:25:06,480 Speaker 1: games for that system, and it would usher in a 411 00:25:06,560 --> 00:25:10,159 Speaker 1: new era of amazing games. This was keyed back into 412 00:25:10,200 --> 00:25:14,760 Speaker 1: that artist's first mentality and let's face it, a desire 413 00:25:14,840 --> 00:25:18,520 Speaker 1: to keep more of the revenue for the publisher, not 414 00:25:18,880 --> 00:25:21,879 Speaker 1: send it off to, you know, the console maker. The 415 00:25:21,960 --> 00:25:24,520 Speaker 1: three D O model was to impose a flat three 416 00:25:24,600 --> 00:25:28,680 Speaker 1: dollar royalty rate per games sold, which was much lower 417 00:25:28,800 --> 00:25:31,919 Speaker 1: than the royalties that were being imposed by Sega or 418 00:25:32,000 --> 00:25:37,360 Speaker 1: Nintendo at the time. Hawkins had a fairly radical idea. Now, 419 00:25:37,400 --> 00:25:41,240 Speaker 1: the standard practice for console hardware is for a single 420 00:25:41,280 --> 00:25:45,880 Speaker 1: company like Nintendo or Sega or Sony to design and 421 00:25:45,960 --> 00:25:49,880 Speaker 1: manufacture the systems themselves. These companies could have their own 422 00:25:49,920 --> 00:25:53,879 Speaker 1: in house development studios, but they would also negotiate deals 423 00:25:53,920 --> 00:25:58,600 Speaker 1: with external video game studios to publish titles on those consoles. 424 00:25:58,640 --> 00:26:01,040 Speaker 1: And Hawkins wanted to kind of turn that model on 425 00:26:01,119 --> 00:26:04,120 Speaker 1: its head, and his idea was to create a company 426 00:26:04,119 --> 00:26:07,800 Speaker 1: that would design the specs and architecture for a video 427 00:26:07,800 --> 00:26:12,159 Speaker 1: game console, but then that company would license out the 428 00:26:12,280 --> 00:26:17,679 Speaker 1: design for other manufacturers to actually make to fabricate those consoles. 429 00:26:18,040 --> 00:26:21,359 Speaker 1: So if you listen to my episode about ARM processors, 430 00:26:21,880 --> 00:26:25,480 Speaker 1: you'll recognize this model as ARM followed the same pathway. 431 00:26:25,800 --> 00:26:28,919 Speaker 1: It's something that in Vidio does with graphics cards, although 432 00:26:28,960 --> 00:26:32,640 Speaker 1: in Video also will manufacture cards in house in addition 433 00:26:32,680 --> 00:26:36,600 Speaker 1: to licensing out the designs to other fabricators. To focus 434 00:26:36,640 --> 00:26:40,680 Speaker 1: on three d O, Hawkins stepped down as the CEO 435 00:26:40,880 --> 00:26:43,840 Speaker 1: of e A, which would come back to haunt him later. 436 00:26:44,200 --> 00:26:46,360 Speaker 1: He would remain the chairman of the Board of Directors 437 00:26:46,400 --> 00:26:49,479 Speaker 1: for a while, but he would become the CEO of 438 00:26:49,640 --> 00:26:52,800 Speaker 1: three d O now and all these initialisms are really 439 00:26:52,840 --> 00:26:56,480 Speaker 1: wearing me out. Beyond the goal of creating a design 440 00:26:56,600 --> 00:26:59,560 Speaker 1: for a new console, there were a few other considerations 441 00:26:59,600 --> 00:27:01,760 Speaker 1: going in to the three d OH. But it helps 442 00:27:02,160 --> 00:27:05,200 Speaker 1: if we take a snapshot look of where the video 443 00:27:05,240 --> 00:27:09,720 Speaker 1: game console industry was in ninete. That was the year 444 00:27:09,800 --> 00:27:12,040 Speaker 1: of three d O s founding. So what was going 445 00:27:12,080 --> 00:27:16,480 Speaker 1: on with video game consoles in ninety one, Well, generally speaking, 446 00:27:16,720 --> 00:27:20,800 Speaker 1: the consoles of we're in what we would refer to 447 00:27:20,960 --> 00:27:25,840 Speaker 1: as the fourth generation of video game consoles. The first generation, 448 00:27:26,080 --> 00:27:29,480 Speaker 1: which started in the nineteen seventies, had largely been consoles 449 00:27:29,560 --> 00:27:33,680 Speaker 1: with games that were hardwired onto the systems, meaning you 450 00:27:33,720 --> 00:27:37,080 Speaker 1: couldn't switch out games or anything. The console would have 451 00:27:37,200 --> 00:27:41,480 Speaker 1: one or more games programmed on it and that was that. 452 00:27:41,480 --> 00:27:44,320 Speaker 1: That was what you were limited to. The second generation 453 00:27:44,359 --> 00:27:47,320 Speaker 1: of consoles is the one that had the Atari twenty 454 00:27:47,640 --> 00:27:49,840 Speaker 1: hundred in it. That was part of the second generation. 455 00:27:50,520 --> 00:27:53,119 Speaker 1: This was the generation that was around during the Crash 456 00:27:53,119 --> 00:27:55,800 Speaker 1: of nineteen eighty three. A lot of these consoles had, 457 00:27:56,160 --> 00:27:58,640 Speaker 1: you know, cartridge based system so you could switch out 458 00:27:58,680 --> 00:28:02,160 Speaker 1: games and that kind of stuff. The third generation included 459 00:28:02,200 --> 00:28:06,119 Speaker 1: the Nintendo Entertainment System, the Sega Master System, and a 460 00:28:06,160 --> 00:28:10,000 Speaker 1: few other consoles. Now keep in mind, these generations aren't 461 00:28:10,160 --> 00:28:13,240 Speaker 1: like hard and fast with solid boundaries. It's not like, 462 00:28:13,680 --> 00:28:16,760 Speaker 1: you know, after seven you go from one generation to 463 00:28:16,800 --> 00:28:19,720 Speaker 1: the next, they're a little more fuzzy. But while Hawkins 464 00:28:19,760 --> 00:28:21,560 Speaker 1: was working on the design of the three D O, 465 00:28:22,119 --> 00:28:25,200 Speaker 1: the leading consoles on the market included the Super Nintendo 466 00:28:25,320 --> 00:28:29,680 Speaker 1: Entertainment System which came out in nine, the Sega Genesis, 467 00:28:29,760 --> 00:28:33,119 Speaker 1: which had actually come out in nine, and the Turbo 468 00:28:33,200 --> 00:28:39,560 Speaker 1: Graphics sixteen. These were all fourth generation video game consoles. Uh. 469 00:28:39,600 --> 00:28:41,400 Speaker 1: There were others that were on the market as well, 470 00:28:41,440 --> 00:28:44,040 Speaker 1: they just weren't as popular. There was the Phillips c 471 00:28:44,200 --> 00:28:47,400 Speaker 1: D I UH, Sega would include the Sega c D 472 00:28:47,960 --> 00:28:50,040 Speaker 1: as a type of system, and there were a couple 473 00:28:50,040 --> 00:28:52,720 Speaker 1: of other systems that were on the horizon in nine 474 00:28:53,000 --> 00:28:55,840 Speaker 1: one when three D A was coming together. But while 475 00:28:55,880 --> 00:28:58,400 Speaker 1: the systems like the S and E S, the Genesis, 476 00:28:58,440 --> 00:29:01,640 Speaker 1: and the base Turbo Graphics six team, we're all cartridge 477 00:29:01,640 --> 00:29:05,520 Speaker 1: based games where the game is you know, hard coded 478 00:29:05,600 --> 00:29:10,239 Speaker 1: onto the circuit board of a video game cartridge. The 479 00:29:10,280 --> 00:29:16,040 Speaker 1: future was moving toward optical discs compact discs in the 480 00:29:16,080 --> 00:29:18,680 Speaker 1: game space. That was clearly where things were going, although 481 00:29:18,720 --> 00:29:23,360 Speaker 1: some companies cough Nintendo cough would resist that longer than others. 482 00:29:24,160 --> 00:29:27,280 Speaker 1: Now the standard of the time, the fourth generation consoles 483 00:29:27,360 --> 00:29:31,280 Speaker 1: was for sixteen bit graphics with processors that ranged on 484 00:29:31,320 --> 00:29:34,520 Speaker 1: the low end with eight bit CPUs. The Turbo Graphics 485 00:29:34,600 --> 00:29:38,640 Speaker 1: sixteen had an eight bit CPU, and eventually the fourth 486 00:29:38,720 --> 00:29:41,800 Speaker 1: generation would include a couple of systems that had thirty 487 00:29:41,840 --> 00:29:45,120 Speaker 1: two bit CPUs with like the sake of thirty two X. 488 00:29:45,480 --> 00:29:48,160 Speaker 1: Although thirty two bit systems saw limited release in the 489 00:29:48,200 --> 00:29:51,800 Speaker 1: fourth generation and limited success, they really came in on 490 00:29:51,840 --> 00:29:53,680 Speaker 1: the tail end of the fourth generation that would play 491 00:29:53,680 --> 00:29:56,480 Speaker 1: a bigger part in the fifth generation of games. It 492 00:29:56,480 --> 00:29:59,120 Speaker 1: would take a couple of years to design the three 493 00:29:59,200 --> 00:30:03,000 Speaker 1: d O and land licensing deals with manufacturers interested in 494 00:30:03,040 --> 00:30:06,000 Speaker 1: making the new console. The launch of the three d 495 00:30:06,120 --> 00:30:08,920 Speaker 1: O would put it in direct competition with consoles that 496 00:30:09,080 --> 00:30:12,440 Speaker 1: belonged to the fifth generation of game systems. More in 497 00:30:12,520 --> 00:30:17,080 Speaker 1: those in a minute, so the pressure was on. The 498 00:30:17,080 --> 00:30:19,479 Speaker 1: three d O would need to be better than the 499 00:30:19,520 --> 00:30:23,040 Speaker 1: existing consoles in the fourth generation or it would quickly 500 00:30:23,040 --> 00:30:26,040 Speaker 1: be left behind by the next generation of systems from 501 00:30:26,080 --> 00:30:29,360 Speaker 1: other manufacturers. So the lead designers for the three d 502 00:30:29,480 --> 00:30:33,400 Speaker 1: O were a couple of guys named Dave Needle and R. J. Michael, 503 00:30:33,880 --> 00:30:37,280 Speaker 1: both of whom had worked on systems or other companies together. 504 00:30:37,760 --> 00:30:40,560 Speaker 1: In fact, Needle and Michael had both worked with Commodore 505 00:30:40,920 --> 00:30:45,680 Speaker 1: to design the Amiga computer system. I've done episodes about Amiga, 506 00:30:46,000 --> 00:30:49,720 Speaker 1: and that story is pretty darn interesting. I really recommend 507 00:30:49,800 --> 00:30:53,400 Speaker 1: you look into it. It's a fascinating story. So I 508 00:30:53,440 --> 00:30:55,880 Speaker 1: recommend checking out those episodes. In particular, I think I 509 00:30:55,920 --> 00:30:58,880 Speaker 1: did a bang up job, if I don't mind saying so, 510 00:30:59,360 --> 00:31:01,640 Speaker 1: And you can see how that particular project came about 511 00:31:01,680 --> 00:31:04,040 Speaker 1: and how it gradually faded away. But the two had 512 00:31:04,080 --> 00:31:08,560 Speaker 1: also designed the Links handheld system for Atari. That's l 513 00:31:08,880 --> 00:31:12,520 Speaker 1: y n X because Atari was naming their systems after 514 00:31:12,640 --> 00:31:15,880 Speaker 1: cats for a while, and now they would be designing 515 00:31:15,920 --> 00:31:20,120 Speaker 1: the three D O specs for trip Hawkins now. According 516 00:31:20,160 --> 00:31:24,560 Speaker 1: to at least some versions of the story, the design 517 00:31:24,640 --> 00:31:26,480 Speaker 1: for the three D O really got to start in 518 00:31:26,560 --> 00:31:30,880 Speaker 1: nine nine, when Needle and Michael had sketched out their 519 00:31:30,920 --> 00:31:34,760 Speaker 1: ideas on a napkin and Trip Hawkins had known these 520 00:31:34,800 --> 00:31:38,040 Speaker 1: two for for years, and after learning about what they 521 00:31:38,080 --> 00:31:41,000 Speaker 1: had in mind, he decided he wanted to join forces 522 00:31:41,040 --> 00:31:44,840 Speaker 1: with them in an effort to shape this into the 523 00:31:44,960 --> 00:31:48,640 Speaker 1: three D O idea he was kind of thinking on. 524 00:31:49,040 --> 00:31:52,080 Speaker 1: So together they formed the three D O Company. The 525 00:31:52,360 --> 00:31:54,840 Speaker 1: full name for the console would become the three d 526 00:31:55,000 --> 00:31:58,320 Speaker 1: O Interactive Multiplayer, but a lot of people just call 527 00:31:58,360 --> 00:32:00,840 Speaker 1: it the three d O. That does make things a 528 00:32:00,880 --> 00:32:03,360 Speaker 1: little confusing because that was also the name of the 529 00:32:03,360 --> 00:32:06,360 Speaker 1: company as well, and we'll learn the company managed to 530 00:32:06,440 --> 00:32:09,680 Speaker 1: stick around a little longer than the console did, so 531 00:32:09,760 --> 00:32:12,640 Speaker 1: it gets a little, you know, fuzzy when used to 532 00:32:12,800 --> 00:32:15,800 Speaker 1: just use three d O as the name. Hawkins looked 533 00:32:15,800 --> 00:32:19,200 Speaker 1: to partner with different electronics manufacturers to license the design 534 00:32:19,320 --> 00:32:22,400 Speaker 1: for the actual production of the three d O Building 535 00:32:22,440 --> 00:32:26,760 Speaker 1: a hardware company would have been monumentally expensive, so he 536 00:32:26,840 --> 00:32:29,520 Speaker 1: decided that licensing it just made more sense, and he 537 00:32:29,560 --> 00:32:35,960 Speaker 1: approached in particular Panasonic, Sony and Sego. Now, Sony had 538 00:32:36,120 --> 00:32:40,400 Speaker 1: recently had a really bad experience with Nintendo. The two 539 00:32:40,440 --> 00:32:44,600 Speaker 1: companies were supposed to introduce a CD ROM peripheral that 540 00:32:44,680 --> 00:32:48,280 Speaker 1: was intended for the Super Nintendo system and Sony was 541 00:32:48,280 --> 00:32:51,240 Speaker 1: gonna make it, and they had gone really far in 542 00:32:51,280 --> 00:32:54,440 Speaker 1: the in the whole process, but then Nintendo backed out 543 00:32:54,440 --> 00:32:57,320 Speaker 1: of the deal. Worse than that, they backed out uh 544 00:32:57,400 --> 00:33:01,120 Speaker 1: in public at CS and switched to a different company. 545 00:33:01,120 --> 00:33:06,480 Speaker 1: They chose Phillips instead, and ultimately that didn't really go anywhere. 546 00:33:06,520 --> 00:33:09,200 Speaker 1: That product just kind of faded away, so it was 547 00:33:09,240 --> 00:33:13,080 Speaker 1: all for nothing. But Ken Kutaragi, a Sony executive who 548 00:33:13,160 --> 00:33:16,800 Speaker 1: was in charge of this super disc project, pivoted with 549 00:33:16,880 --> 00:33:20,480 Speaker 1: the intent to use the super disc technology as the 550 00:33:20,520 --> 00:33:25,360 Speaker 1: backbone of a new product from Sony, the first PlayStation prototype, 551 00:33:25,840 --> 00:33:29,280 Speaker 1: which actually was very different from the PlayStation that would 552 00:33:29,280 --> 00:33:32,480 Speaker 1: officially debut a couple of years later. But not surprisingly, 553 00:33:33,320 --> 00:33:36,880 Speaker 1: Sony declined Hawkins's offer to license the three d O 554 00:33:37,000 --> 00:33:42,160 Speaker 1: design for manufacture because they already had their PlayStation in development. Sega, 555 00:33:42,520 --> 00:33:45,080 Speaker 1: which if you recall, was the company that had kind 556 00:33:45,080 --> 00:33:47,880 Speaker 1: of inspired Hawkins to pursue the three d O project 557 00:33:47,920 --> 00:33:51,760 Speaker 1: in the first place, also passed on the opportunity to 558 00:33:52,000 --> 00:33:55,560 Speaker 1: make the three D O. Apparently, Sega executives felt it 559 00:33:55,560 --> 00:33:58,720 Speaker 1: would have been too expensive with too small of a 560 00:33:58,760 --> 00:34:01,479 Speaker 1: profit margin to really get into the three d OH 561 00:34:01,560 --> 00:34:04,600 Speaker 1: manufacturing game. And this is one of those cases where 562 00:34:04,640 --> 00:34:09,239 Speaker 1: Sega made the right call. Uh. Those often can seem 563 00:34:09,280 --> 00:34:11,200 Speaker 1: few and far between if you know a lot about 564 00:34:11,239 --> 00:34:15,000 Speaker 1: Sega's history, but this was the right decision. Panasonic, however, 565 00:34:15,400 --> 00:34:18,400 Speaker 1: was a different story. This electronics company was one of 566 00:34:18,440 --> 00:34:21,520 Speaker 1: the biggest in the world, but they didn't have a 567 00:34:21,640 --> 00:34:25,520 Speaker 1: video game console. They didn't develop those. There was an 568 00:34:25,680 --> 00:34:29,319 Speaker 1: entire sector of the electronics market out there that Panasonic 569 00:34:29,520 --> 00:34:32,880 Speaker 1: was not serving. So the company became the first to 570 00:34:33,080 --> 00:34:36,800 Speaker 1: license the three D O design and start on fabrication. 571 00:34:37,440 --> 00:34:41,399 Speaker 1: A little bit later, another Japanese electronics company called Sanio 572 00:34:41,440 --> 00:34:45,520 Speaker 1: would start making their own three D O consoles. They 573 00:34:45,560 --> 00:34:48,640 Speaker 1: also licensed it from three d O. Now. Snio started 574 00:34:48,640 --> 00:34:53,879 Speaker 1: off in n during what was effectively a purge at Panasonic. 575 00:34:53,920 --> 00:34:57,080 Speaker 1: It was a post World War two purge of the 576 00:34:57,160 --> 00:34:59,840 Speaker 1: Japanese company. For that whole story, you should listen to 577 00:34:59,880 --> 00:35:02,640 Speaker 1: my episodes about the history of Panasonic because I mentioned 578 00:35:02,640 --> 00:35:06,040 Speaker 1: it there. I just find it interesting that the first 579 00:35:06,040 --> 00:35:11,520 Speaker 1: two companies that would sign on to to fabricate three 580 00:35:11,600 --> 00:35:14,879 Speaker 1: D O s also shared d n A in their 581 00:35:14,920 --> 00:35:18,640 Speaker 1: corporate history. Also, while this doesn't really play into our 582 00:35:18,719 --> 00:35:20,200 Speaker 1: three D O story, I thought I would just go 583 00:35:20,280 --> 00:35:23,239 Speaker 1: ahead and mention it. Those two companies would join up 584 00:35:23,239 --> 00:35:27,080 Speaker 1: in two thousand nine when Panasonic would acquire Sanio, which 585 00:35:27,120 --> 00:35:30,120 Speaker 1: is just evidence that we live in a really weird world. 586 00:35:30,880 --> 00:35:34,759 Speaker 1: And there was a third company that would manufacture three 587 00:35:34,840 --> 00:35:38,680 Speaker 1: D O consoles and this one was gold Star, a 588 00:35:38,800 --> 00:35:43,240 Speaker 1: South Korean company. Gold Star is still around today, except 589 00:35:43,280 --> 00:35:45,439 Speaker 1: it's by a totally different name, and it's a name 590 00:35:45,480 --> 00:35:50,040 Speaker 1: that you would recognize. That name is LG Electronics. It 591 00:35:50,520 --> 00:35:54,920 Speaker 1: changed its name in so the company is still around, 592 00:35:55,040 --> 00:35:58,840 Speaker 1: but under a different name. While Panasonic, Sanio and gold 593 00:35:58,880 --> 00:36:02,960 Speaker 1: Star would produced three D O consoles, there were a 594 00:36:03,000 --> 00:36:06,440 Speaker 1: few other companies that had agreed to license the design 595 00:36:06,520 --> 00:36:09,200 Speaker 1: and build their own three D O s, but those 596 00:36:09,200 --> 00:36:13,239 Speaker 1: consoles just never materialized in the marketplace. Uh. Game Pro 597 00:36:13,400 --> 00:36:16,560 Speaker 1: magazine was a great resource for this episode when I 598 00:36:16,600 --> 00:36:20,680 Speaker 1: was looking into this. According to one issue, Samsung was 599 00:36:20,719 --> 00:36:22,960 Speaker 1: one of the companies that signed on to produce three 600 00:36:23,000 --> 00:36:25,160 Speaker 1: D O s, although they didn't announce any sort of 601 00:36:25,239 --> 00:36:29,000 Speaker 1: timeline for production and ultimately it didn't go anywhere. Another 602 00:36:29,080 --> 00:36:33,839 Speaker 1: Game Pro issue revealed that the electronics company Toshiba had 603 00:36:33,880 --> 00:36:37,200 Speaker 1: secured a licensing deal they were going to actually manufacture 604 00:36:37,320 --> 00:36:41,320 Speaker 1: a handheld or portable three D O system that also 605 00:36:41,560 --> 00:36:45,720 Speaker 1: never went anywhere. And and yet another issue of Game 606 00:36:45,760 --> 00:36:49,160 Speaker 1: Pro but they were really big into covering the development 607 00:36:49,160 --> 00:36:50,920 Speaker 1: of three D O back in the day. But I 608 00:36:51,000 --> 00:36:54,160 Speaker 1: found that A T and T apparently showed off a 609 00:36:54,280 --> 00:36:58,040 Speaker 1: prototype three d O system of their own at the 610 00:36:58,120 --> 00:37:01,440 Speaker 1: Consumer Electronics Show. But uh, as far as I know, 611 00:37:02,200 --> 00:37:04,759 Speaker 1: nothing beyond the prototypes that A T and T made 612 00:37:05,120 --> 00:37:08,879 Speaker 1: ever got produced. I do wonder if there are any 613 00:37:08,960 --> 00:37:10,800 Speaker 1: of those A T and T three d O s 614 00:37:10,880 --> 00:37:15,680 Speaker 1: floating around out there anyway. Gold Star, Panasonic, and Sonio 615 00:37:15,719 --> 00:37:19,040 Speaker 1: would each release a few different versions of the three 616 00:37:19,160 --> 00:37:22,000 Speaker 1: d O s they produced. Some were never meant to 617 00:37:22,000 --> 00:37:25,160 Speaker 1: be consumer products. They were rather designed to help game 618 00:37:25,200 --> 00:37:28,560 Speaker 1: developers who needed, you know, actual hardware to test their 619 00:37:28,600 --> 00:37:33,600 Speaker 1: games on, essentially debug kits for their games. Others would 620 00:37:33,640 --> 00:37:37,120 Speaker 1: swap out basic parts on the systems. A lot of 621 00:37:37,160 --> 00:37:40,160 Speaker 1: the early three d O s had a motorized c 622 00:37:40,360 --> 00:37:44,080 Speaker 1: D tray, which is both expensive and it's a point 623 00:37:44,080 --> 00:37:46,160 Speaker 1: of failure. You know, eventually the motor is going to 624 00:37:46,200 --> 00:37:48,880 Speaker 1: give out and the tray is not going to extend 625 00:37:49,000 --> 00:37:51,799 Speaker 1: or go back in, and so some of them in 626 00:37:51,840 --> 00:37:55,279 Speaker 1: the subsequent models of the three D O replace that 627 00:37:55,320 --> 00:37:58,120 Speaker 1: with a top loading c D tray, so you just 628 00:37:58,520 --> 00:38:00,719 Speaker 1: flip open the top and put a c D in 629 00:38:00,760 --> 00:38:04,399 Speaker 1: that way, as opposed to ejecting a tray. Now, when 630 00:38:04,400 --> 00:38:07,360 Speaker 1: we come back, I'll run down what the basic spects 631 00:38:07,480 --> 00:38:10,560 Speaker 1: were for the three d O console, what set it 632 00:38:10,600 --> 00:38:13,880 Speaker 1: apart from other consoles of that era, and why the 633 00:38:13,920 --> 00:38:17,320 Speaker 1: console ultimately failed, as well as give a brief rundown 634 00:38:17,680 --> 00:38:20,520 Speaker 1: on what happened to the company three d O, which 635 00:38:20,560 --> 00:38:22,879 Speaker 1: again hung on for a few years after the death 636 00:38:22,920 --> 00:38:25,720 Speaker 1: of the console. We'll get to that after this quick 637 00:38:25,760 --> 00:38:37,960 Speaker 1: break So what makes a three d O a three 638 00:38:38,000 --> 00:38:41,759 Speaker 1: d O? Let's learn about the specs of the console. Now. 639 00:38:41,800 --> 00:38:45,120 Speaker 1: For the purposes of this breakdown, I'm really just gonna 640 00:38:45,160 --> 00:38:48,440 Speaker 1: focus on the first consumer model of the three d 641 00:38:48,520 --> 00:38:50,640 Speaker 1: O console to hit the market. That would be the 642 00:38:50,719 --> 00:38:55,359 Speaker 1: Panasonic three d O Interactive Multiplayer f Z one. This 643 00:38:55,440 --> 00:39:00,600 Speaker 1: is the system that first debuted. In the rains of 644 00:39:00,640 --> 00:39:04,239 Speaker 1: the machine was a thirty two bit CPU that was 645 00:39:04,320 --> 00:39:08,120 Speaker 1: a risk style processor r I s C that is 646 00:39:08,280 --> 00:39:12,080 Speaker 1: reduced instruction set computer. Now I talked about this with 647 00:39:12,160 --> 00:39:15,080 Speaker 1: the story of ARM, but basically, it means that the 648 00:39:15,120 --> 00:39:19,880 Speaker 1: instructions that this style of CPU handles are relatively simple, 649 00:39:20,080 --> 00:39:23,800 Speaker 1: and that means that each step, each instruction is easy 650 00:39:23,920 --> 00:39:27,520 Speaker 1: to carry out and therefore it goes pretty fast. More 651 00:39:27,560 --> 00:39:31,600 Speaker 1: complicated instructions might require lots more steps, and that slows 652 00:39:31,640 --> 00:39:35,640 Speaker 1: things down. The clock speed, or the number of pulses 653 00:39:35,719 --> 00:39:40,319 Speaker 1: the CPU has per second to carry out instructions, was 654 00:39:40,400 --> 00:39:43,680 Speaker 1: twelve point five mega hurts. That's twelve million, five hundred 655 00:39:43,680 --> 00:39:47,760 Speaker 1: thousand pulses per second. That sounds like it's really fast, 656 00:39:47,840 --> 00:39:51,000 Speaker 1: but by comparison these days, we talked about processors that 657 00:39:51,000 --> 00:39:53,400 Speaker 1: are in the giga hurts range with more than a 658 00:39:53,480 --> 00:39:56,840 Speaker 1: billion pulses per second, so we've come a long way. 659 00:39:57,239 --> 00:40:01,400 Speaker 1: Paired with the CPU were a couple of video coprocessors 660 00:40:01,480 --> 00:40:04,719 Speaker 1: meant to offload some of the heavy lifting when it 661 00:40:04,920 --> 00:40:07,880 Speaker 1: comes to graphics processing. In a way, it's similar to 662 00:40:07,920 --> 00:40:10,919 Speaker 1: what graphics cards would do for PCs in the late 663 00:40:11,000 --> 00:40:16,239 Speaker 1: nineteen nineties. By handing off tasks like texture mapping to coprocessors, 664 00:40:16,239 --> 00:40:20,080 Speaker 1: the CPU could focus on other tasks while running games 665 00:40:20,120 --> 00:40:22,560 Speaker 1: on the three D O. It also had a math 666 00:40:22,680 --> 00:40:26,520 Speaker 1: coprocessor in addition to those to also kind of spread 667 00:40:26,520 --> 00:40:30,160 Speaker 1: out the load. Now, this was in the dark times 668 00:40:30,239 --> 00:40:33,279 Speaker 1: before h D t V was even a thing, though 669 00:40:33,320 --> 00:40:35,759 Speaker 1: Hawkins has said on occasion that the three d O 670 00:40:35,840 --> 00:40:38,840 Speaker 1: could have been upgraded to h D t V. I 671 00:40:38,840 --> 00:40:41,680 Speaker 1: I don't know if that's true based on what I've seen. However, 672 00:40:42,239 --> 00:40:44,920 Speaker 1: as it was sold. The three d O would generate 673 00:40:44,960 --> 00:40:48,040 Speaker 1: images that would be shown at a resolution of sixty 674 00:40:48,080 --> 00:40:53,880 Speaker 1: pixels by FO pixels you know, essentially, you know, standard definition. 675 00:40:53,960 --> 00:40:58,400 Speaker 1: It was capable of replicating sixteen point seven million colors. 676 00:40:59,080 --> 00:41:01,520 Speaker 1: The three d os of or did Dolby surround sound. 677 00:41:01,680 --> 00:41:05,120 Speaker 1: It had two megabytes of d RAM, one megabyte of 678 00:41:05,239 --> 00:41:09,000 Speaker 1: v RAM, and of s RAM. But what the heck 679 00:41:09,040 --> 00:41:12,680 Speaker 1: does that mean? Well, d RAM stands for dynamic RAM, 680 00:41:12,719 --> 00:41:17,520 Speaker 1: which at the time was the standard RAM of machines. 681 00:41:17,640 --> 00:41:21,800 Speaker 1: It must be continually refreshed, or rather occasionally refreshed I 682 00:41:21,800 --> 00:41:25,520 Speaker 1: should say, not continually occasionally refreshed by the microprocessor or 683 00:41:25,520 --> 00:41:29,719 Speaker 1: else the memory deterior rates. V RAM is video RAM, 684 00:41:29,760 --> 00:41:32,640 Speaker 1: a type of RAM that the computer can actually read 685 00:41:32,680 --> 00:41:37,120 Speaker 1: and write to simultaneously, and it was particularly useful for 686 00:41:37,200 --> 00:41:41,680 Speaker 1: handling graphics. And s RAM stands for static RAM, which 687 00:41:41,840 --> 00:41:44,920 Speaker 1: was a much faster form of RAM than d RAM. 688 00:41:44,920 --> 00:41:47,040 Speaker 1: But if it's better, why don't just why don't you 689 00:41:47,080 --> 00:41:48,680 Speaker 1: just use s RAM? Man? Well, it's because it was 690 00:41:48,719 --> 00:41:51,279 Speaker 1: also way more expensive, so it would drive up the 691 00:41:51,320 --> 00:41:54,560 Speaker 1: cost of productions. That's why the three d O also 692 00:41:54,800 --> 00:41:58,080 Speaker 1: had some expansion ports and had a single control part, 693 00:41:58,160 --> 00:42:00,680 Speaker 1: but it allowed for daisy chain can actions of up 694 00:42:00,680 --> 00:42:04,240 Speaker 1: to eight peripherals, so you could have multiple controllers plugged 695 00:42:04,280 --> 00:42:06,600 Speaker 1: into it. But it had the one port that you 696 00:42:06,719 --> 00:42:11,160 Speaker 1: used to do that with. Uh now when the system 697 00:42:11,160 --> 00:42:13,160 Speaker 1: went on sale. Oh and it also had a CD 698 00:42:13,360 --> 00:42:15,480 Speaker 1: ROM drive. I mentioned that earlier, but you know I 699 00:42:15,480 --> 00:42:17,560 Speaker 1: should throw that in there too. When I went on sale. 700 00:42:17,560 --> 00:42:22,520 Speaker 1: It did so for six hundred nine nine dollars. That 701 00:42:23,840 --> 00:42:26,920 Speaker 1: is a lot of money. If we adjust for inflation 702 00:42:27,320 --> 00:42:30,520 Speaker 1: in today's US dollars, it would be equivalent to about 703 00:42:30,560 --> 00:42:34,480 Speaker 1: one thousand, two hundred sixty bucks or so. So imagine 704 00:42:34,640 --> 00:42:36,560 Speaker 1: that you go into a store and you see a 705 00:42:36,640 --> 00:42:40,120 Speaker 1: video game console and its ticket prices one thousand, two 706 00:42:40,200 --> 00:42:43,480 Speaker 1: hundred sixty dollars. This is not a fully fledged computer. 707 00:42:43,600 --> 00:42:45,759 Speaker 1: It's not like a gaming rig or anything. It is 708 00:42:45,800 --> 00:42:49,799 Speaker 1: a video game console akin to something like the PlayStation. 709 00:42:50,360 --> 00:42:54,279 Speaker 1: By comparison, the Sega Genesis, which was again already on 710 00:42:54,320 --> 00:42:56,680 Speaker 1: the market. It had been since the late eighties that 711 00:42:56,719 --> 00:43:00,560 Speaker 1: one cost a hundred eighty nine dollars winn't launch, and 712 00:43:00,600 --> 00:43:04,080 Speaker 1: the Super Nintendo Entertainment System, which was the reigning champ 713 00:43:04,239 --> 00:43:08,920 Speaker 1: at the time, had cost one when it launched, so 714 00:43:09,000 --> 00:43:11,960 Speaker 1: the three d O cost more than both of those combined. 715 00:43:12,239 --> 00:43:14,919 Speaker 1: It almost cost twice as much as both of those 716 00:43:14,960 --> 00:43:18,440 Speaker 1: put together. Now, granted, the three d O was a 717 00:43:18,520 --> 00:43:21,640 Speaker 1: thirty two bit system, whereas the S and E S 718 00:43:21,760 --> 00:43:26,320 Speaker 1: and the Sega Genesis the regular Sega Genesis were sixteen 719 00:43:26,400 --> 00:43:29,399 Speaker 1: met systems, So the three d O could run more 720 00:43:29,400 --> 00:43:34,280 Speaker 1: sophisticated games with better graphics. But at that steep price point, 721 00:43:34,640 --> 00:43:38,280 Speaker 1: would anyone actually buy one? And why was that price 722 00:43:38,360 --> 00:43:40,920 Speaker 1: so high? Well, it goes back to the three d 723 00:43:41,080 --> 00:43:44,840 Speaker 1: O business model. See Hawkins idea was to leave the 724 00:43:44,880 --> 00:43:48,080 Speaker 1: manufacturing to other people, and then to make money through 725 00:43:48,200 --> 00:43:52,800 Speaker 1: licensing the technology to those manufacturers and later to develop 726 00:43:52,920 --> 00:43:56,360 Speaker 1: games for the system itself and to collect on royalties 727 00:43:56,400 --> 00:43:59,759 Speaker 1: for all the consoles and games that were sold for 728 00:43:59,880 --> 00:44:02,920 Speaker 1: the manufacturers. That meant that the three d O was 729 00:44:03,000 --> 00:44:07,800 Speaker 1: inherently more expensive than if those companies had actually developed 730 00:44:07,800 --> 00:44:11,440 Speaker 1: their own hardware in house. Manufacturers, we're going to have 731 00:44:11,480 --> 00:44:14,160 Speaker 1: to pay three d O for every console they sold 732 00:44:14,160 --> 00:44:18,080 Speaker 1: to consumers. So to make up for that cost, that 733 00:44:18,200 --> 00:44:22,400 Speaker 1: loss and revenue, they increased the price of the consoles, 734 00:44:22,400 --> 00:44:24,680 Speaker 1: but that ended up pricing the systems well out of 735 00:44:24,680 --> 00:44:27,319 Speaker 1: the budgets of most video game fans who are out 736 00:44:27,320 --> 00:44:31,120 Speaker 1: there now. Typically, the way video game console manufacturers make 737 00:44:31,160 --> 00:44:36,440 Speaker 1: money is through software, not hardware. Most companies will actually 738 00:44:36,440 --> 00:44:40,440 Speaker 1: sell the hardware the consoles and a loss, so the 739 00:44:40,480 --> 00:44:43,560 Speaker 1: retail price will actually be below what it costs to 740 00:44:43,719 --> 00:44:47,359 Speaker 1: make and ship those consoles to consumers. Now why would 741 00:44:47,400 --> 00:44:50,759 Speaker 1: you do this, Well, it's because consoles are really no 742 00:44:50,800 --> 00:44:54,960 Speaker 1: good without content to play on those consoles, so the 743 00:44:55,000 --> 00:44:58,600 Speaker 1: manufacturers would use the consoles to secure customers for stuff 744 00:44:58,640 --> 00:45:03,000 Speaker 1: like video games and other content. Microsoft and Sony and 745 00:45:03,280 --> 00:45:07,239 Speaker 1: Nintendo can stand to lose money on console sales if 746 00:45:07,280 --> 00:45:10,000 Speaker 1: they can make it back by selling enough first party 747 00:45:10,040 --> 00:45:14,160 Speaker 1: games or making royalties off of games that are licensed 748 00:45:14,200 --> 00:45:18,000 Speaker 1: to run on those systems. But since these manufacturers, like 749 00:45:18,040 --> 00:45:22,400 Speaker 1: Panasonic didn't own the i P, they couldn't rely on 750 00:45:22,480 --> 00:45:25,359 Speaker 1: that same model. They weren't going to make royalties off 751 00:45:25,400 --> 00:45:28,719 Speaker 1: of game sales the way that three d O would. Heck, 752 00:45:28,760 --> 00:45:31,680 Speaker 1: if if Panasonic had made a game for the console 753 00:45:31,760 --> 00:45:34,200 Speaker 1: that they were manufacturing, they would have to pay a 754 00:45:34,280 --> 00:45:37,480 Speaker 1: royalty to three d OH. Now, sure it was a 755 00:45:37,520 --> 00:45:40,279 Speaker 1: lower royalty than what it would be if you were 756 00:45:40,320 --> 00:45:43,879 Speaker 1: to make a game for Saga or Nintendo. But since 757 00:45:43,920 --> 00:45:47,960 Speaker 1: Panasonic was actually fabricating the three d O, that's a 758 00:45:47,960 --> 00:45:51,960 Speaker 1: big difference, and so the company passed the costs onto 759 00:45:52,000 --> 00:45:55,880 Speaker 1: the consumer. Understandably, that meant that the sales of the 760 00:45:55,880 --> 00:46:00,000 Speaker 1: three d O were modest at best, while the Royal 761 00:46:00,080 --> 00:46:02,759 Speaker 1: lt fees meant that, you know, developers were interested in 762 00:46:02,840 --> 00:46:06,120 Speaker 1: making games for the console. The fact that the consoles 763 00:46:06,120 --> 00:46:10,600 Speaker 1: weren't really selling well was a huge problem. Developing a 764 00:46:10,680 --> 00:46:15,399 Speaker 1: game is a time consuming and expensive process, and if 765 00:46:15,400 --> 00:46:17,520 Speaker 1: you see that very few people have bought the console 766 00:46:17,560 --> 00:46:19,680 Speaker 1: in the first place, well there's not a lot of 767 00:46:19,719 --> 00:46:22,239 Speaker 1: incentive for you to make games for it. I mean, 768 00:46:22,280 --> 00:46:24,719 Speaker 1: if you do spend that time and money, there's a 769 00:46:24,719 --> 00:46:27,120 Speaker 1: really good chance you won't see a return on that investment. 770 00:46:27,120 --> 00:46:30,200 Speaker 1: There's literally not enough people with the console out there 771 00:46:30,640 --> 00:46:32,840 Speaker 1: to buy enough copies of your game for you to 772 00:46:32,880 --> 00:46:35,719 Speaker 1: make a profit. So the three d O had sort 773 00:46:35,760 --> 00:46:39,839 Speaker 1: of defeated itself. Now this wasn't because of the hardware, though, 774 00:46:39,880 --> 00:46:42,400 Speaker 1: to be fair, other systems that could go toe to 775 00:46:42,440 --> 00:46:44,640 Speaker 1: toe with the three d O were soon on the 776 00:46:44,680 --> 00:46:48,200 Speaker 1: market afterwards, like the Sony PlayStation, But the failure was 777 00:46:48,280 --> 00:46:51,719 Speaker 1: more in the business model. Hawkins, for his part, has 778 00:46:51,719 --> 00:46:54,840 Speaker 1: said that most retailers actually marked the price down to 779 00:46:54,920 --> 00:47:01,080 Speaker 1: five dollars, not six, because the ret oller said, we'll 780 00:47:01,200 --> 00:47:03,920 Speaker 1: never be able to sell these things if it's that expensive, 781 00:47:04,760 --> 00:47:08,160 Speaker 1: So I guess that's something. But even so, at five 782 00:47:08,320 --> 00:47:11,880 Speaker 1: nine it was far more expensive than the consoles that 783 00:47:12,120 --> 00:47:16,120 Speaker 1: competitors on the market had. Heck, when the Sony PlayStation 784 00:47:16,160 --> 00:47:20,480 Speaker 1: would debut in two years after the three d O 785 00:47:20,600 --> 00:47:23,520 Speaker 1: at first hit the market, Sony priced it at two 786 00:47:23,600 --> 00:47:26,920 Speaker 1: hundred nine dollars, and like the three d O, the 787 00:47:27,000 --> 00:47:30,799 Speaker 1: PlayStation had a thirty two bit processor and had comparative 788 00:47:30,800 --> 00:47:33,960 Speaker 1: amounts of RAM. The f Z one would be the 789 00:47:34,000 --> 00:47:36,600 Speaker 1: most expensive three d O console to hit the market, 790 00:47:36,640 --> 00:47:39,680 Speaker 1: that was the first one, but even the less expensive 791 00:47:39,680 --> 00:47:43,560 Speaker 1: ones were still more expensive than the competition. Gold Stars 792 00:47:43,640 --> 00:47:47,600 Speaker 1: three d O would debut at three dollars. Even the 793 00:47:47,640 --> 00:47:52,080 Speaker 1: expensive f Z one would drop to four dollars later, 794 00:47:52,640 --> 00:47:56,440 Speaker 1: but the damage had been done. Adding to the enormous 795 00:47:56,520 --> 00:47:59,880 Speaker 1: problem of a high price was the fact that developing 796 00:48:00,080 --> 00:48:02,960 Speaker 1: games for the system was a new process. It was 797 00:48:03,000 --> 00:48:05,400 Speaker 1: a brand new set of hardware, and that meant that 798 00:48:05,520 --> 00:48:08,920 Speaker 1: game development was gonna a little more slowly than what 799 00:48:09,080 --> 00:48:11,799 Speaker 1: the three d O team had hoped, and that meant 800 00:48:11,800 --> 00:48:15,240 Speaker 1: that some titles that had been intended to be launch titles, 801 00:48:15,239 --> 00:48:19,920 Speaker 1: like a Jurassic Park game, trailed behind by several months 802 00:48:20,239 --> 00:48:22,800 Speaker 1: as developers tried to work out bugs in their code. 803 00:48:23,080 --> 00:48:26,320 Speaker 1: In fact, the only title that was available at launch 804 00:48:26,560 --> 00:48:29,879 Speaker 1: was a game called Crash and Burn, a futuristic racing game. 805 00:48:30,560 --> 00:48:33,600 Speaker 1: The console would fare a little bit better in Japan, 806 00:48:34,160 --> 00:48:37,480 Speaker 1: where there were six whole launch titles to go along 807 00:48:37,480 --> 00:48:41,120 Speaker 1: with it when it went on sale in n but 808 00:48:41,200 --> 00:48:45,360 Speaker 1: after an initial interest in three d O, that interest 809 00:48:45,360 --> 00:48:48,440 Speaker 1: in Japan died down and sales died with it. And 810 00:48:48,560 --> 00:48:50,719 Speaker 1: one bitter part of the story is that e A, 811 00:48:51,040 --> 00:48:54,640 Speaker 1: the company that Trip Hawkins had founded back in two, 812 00:48:55,400 --> 00:48:59,279 Speaker 1: ultimately bailed on three d O to develop more software 813 00:48:59,280 --> 00:49:02,520 Speaker 1: for Sony play station. Hawkins found out his old company 814 00:49:02,560 --> 00:49:05,719 Speaker 1: would not be developing exclusive titles for the three d 815 00:49:05,800 --> 00:49:08,480 Speaker 1: O console, but they would be doing it for the 816 00:49:08,520 --> 00:49:12,440 Speaker 1: Sony PlayStation, and that had to be a knife in 817 00:49:12,480 --> 00:49:16,000 Speaker 1: the back to see the company he had founded undercut 818 00:49:16,600 --> 00:49:20,399 Speaker 1: the next company he had found it yikes, the three 819 00:49:20,480 --> 00:49:23,560 Speaker 1: d O company was looking at a new console design 820 00:49:23,680 --> 00:49:26,560 Speaker 1: to try and salvage things They code named it the 821 00:49:26,760 --> 00:49:29,120 Speaker 1: M two. This was going to be the successor to 822 00:49:29,239 --> 00:49:31,520 Speaker 1: the three d O and it was intended to be 823 00:49:31,560 --> 00:49:34,600 Speaker 1: backwards compatible with the three d O systems, so that, 824 00:49:34,719 --> 00:49:37,759 Speaker 1: you know, you wouldn't totally irritate all the three d 825 00:49:37,880 --> 00:49:40,760 Speaker 1: O fans out there. And the M two was needed 826 00:49:40,920 --> 00:49:43,640 Speaker 1: because other game consoles were hitting the market that could 827 00:49:43,640 --> 00:49:46,920 Speaker 1: compete on a technical level pretty effectively with the three 828 00:49:47,000 --> 00:49:50,960 Speaker 1: d O and they were much cheaper, and that, unfortunately, 829 00:49:51,040 --> 00:49:53,680 Speaker 1: was just never meant to be. The company stopped development 830 00:49:53,760 --> 00:49:56,759 Speaker 1: of the M two and sold it off to Panasonic. 831 00:49:56,880 --> 00:49:59,960 Speaker 1: It's probably a good thing because they avoided the sunken 832 00:50:00,160 --> 00:50:04,839 Speaker 1: cost fallacy. By the writing was on the wall and 833 00:50:04,880 --> 00:50:08,680 Speaker 1: the three d O system was discontinued. The three d 834 00:50:08,760 --> 00:50:12,360 Speaker 1: O Company switched gears and instead of designing hardware specs 835 00:50:12,440 --> 00:50:15,880 Speaker 1: and then licensing those out the fabricators, the company would 836 00:50:15,880 --> 00:50:21,200 Speaker 1: focus solely on developing software for other existing consoles like 837 00:50:21,239 --> 00:50:24,759 Speaker 1: the Sega Saturn and even the Sony PlayStation, as well 838 00:50:24,760 --> 00:50:29,520 Speaker 1: as for other computer platforms. The company restructured, layoffs followed. 839 00:50:29,680 --> 00:50:31,760 Speaker 1: I mean, there's no need for the hardware design teams 840 00:50:31,760 --> 00:50:35,000 Speaker 1: at that point, and by the company had sold off 841 00:50:35,000 --> 00:50:39,080 Speaker 1: its hardware business division to Samsung. Hugh Martin, who had 842 00:50:39,120 --> 00:50:42,400 Speaker 1: been president while Hawkins was serving as CEO and chairman, 843 00:50:42,760 --> 00:50:45,040 Speaker 1: left the company at that time, leaving Hawkins with the 844 00:50:45,120 --> 00:50:47,920 Speaker 1: full leadership of the three D O Company. The three 845 00:50:47,960 --> 00:50:50,480 Speaker 1: DO Company would go on to develop games like the 846 00:50:50,600 --> 00:50:54,319 Speaker 1: Army Men franchise, the Mind and Magic Series, and High 847 00:50:54,400 --> 00:50:57,560 Speaker 1: Heat Major League Baseball, which was possibly another nod to 848 00:50:57,600 --> 00:51:01,080 Speaker 1: hawkins love of sports. But while some those franchises would 849 00:51:01,160 --> 00:51:04,680 Speaker 1: do well, ultimately the company was unable to stay in business, 850 00:51:05,000 --> 00:51:08,399 Speaker 1: and in two thousand three, ten years after they had 851 00:51:08,440 --> 00:51:11,160 Speaker 1: founded the company, Three D O had to file for 852 00:51:11,280 --> 00:51:15,560 Speaker 1: Chapter eleven bankruptcy protection. Its assets were sold off, with 853 00:51:15,680 --> 00:51:19,880 Speaker 1: different franchises going to other game developers, and our story 854 00:51:20,000 --> 00:51:23,680 Speaker 1: comes to an end. Well. As for Trip Hawkins, he 855 00:51:23,760 --> 00:51:26,400 Speaker 1: ran to some other challenges. In two thousand eleven, the 856 00:51:26,520 --> 00:51:29,160 Speaker 1: i r S, that is, the Internal Revenue Service in 857 00:51:29,160 --> 00:51:31,239 Speaker 1: the United States, the agency kind of in charge of 858 00:51:31,320 --> 00:51:36,439 Speaker 1: overseeing federal taxes. They alleged that Hawkins owed around twenty 859 00:51:36,480 --> 00:51:41,040 Speaker 1: million dollars in back taxes and that number would steadily 860 00:51:41,120 --> 00:51:44,799 Speaker 1: go up. A judge said that Hawkins quote continued to 861 00:51:44,880 --> 00:51:49,480 Speaker 1: spend money extravagantly with knowledge of his liabilities. In the quote, 862 00:51:49,880 --> 00:51:53,800 Speaker 1: essentially he was saying that Hawkins was using a personal 863 00:51:53,840 --> 00:51:57,280 Speaker 1: bankruptcy to kind of shield his wealth and was still 864 00:51:57,320 --> 00:52:01,439 Speaker 1: spending money like crazy on a lavish lifestyle, or, as 865 00:52:01,480 --> 00:52:04,360 Speaker 1: an old timey type person might say, he was making 866 00:52:04,400 --> 00:52:08,040 Speaker 1: hay while the sun was Shannon. He was doing this 867 00:52:08,080 --> 00:52:11,400 Speaker 1: with the help of a little accounting company called KPMG. 868 00:52:12,120 --> 00:52:15,560 Speaker 1: By the way, this sort of financial gymnastics that Hawkins 869 00:52:15,600 --> 00:52:19,160 Speaker 1: was accused of performing are not that dissimilar from the 870 00:52:19,200 --> 00:52:23,000 Speaker 1: allegations leveled against a certain United States president. Right now, 871 00:52:23,960 --> 00:52:26,640 Speaker 1: Hawkins would go on to pay some of those back 872 00:52:26,680 --> 00:52:30,160 Speaker 1: taxes back, but he would be embroiled in various legal 873 00:52:30,200 --> 00:52:34,200 Speaker 1: proceedings regarding the bulk of those taxes. As for Electronic 874 00:52:34,320 --> 00:52:37,440 Speaker 1: Arts or e A, it is now the second largest 875 00:52:37,560 --> 00:52:41,040 Speaker 1: video game publisher in the world, right behind Activision Blizzard, 876 00:52:41,520 --> 00:52:45,520 Speaker 1: another behemoth in video game publishing, and as I mentioned earlier, 877 00:52:45,719 --> 00:52:49,480 Speaker 1: EA has built up a pretty spotty reputation over the years. 878 00:52:49,760 --> 00:52:54,120 Speaker 1: Oh and as for Apple, you know, the first employer 879 00:52:54,280 --> 00:52:56,879 Speaker 1: of Trip Hawkins after he got out of college. Well, 880 00:52:56,920 --> 00:52:59,960 Speaker 1: Apple is still doing pretty good these days. I hear 881 00:53:00,000 --> 00:53:03,920 Speaker 1: they actually have a new phone out so good on them. 882 00:53:03,960 --> 00:53:07,239 Speaker 1: And that wraps up the tragic tale of the three 883 00:53:07,280 --> 00:53:10,759 Speaker 1: d O and the three d O Company and the 884 00:53:10,800 --> 00:53:14,239 Speaker 1: misadventures of Trip Hawkins, which I think would make a 885 00:53:14,680 --> 00:53:18,240 Speaker 1: great title of a choose your own adventure novel. What's 886 00:53:18,280 --> 00:53:21,080 Speaker 1: next for Hawkins? I don't know. He founded another company 887 00:53:21,080 --> 00:53:23,759 Speaker 1: called Digital Chocolate, which well maybe I'll talk about in 888 00:53:23,840 --> 00:53:27,040 Speaker 1: another episode. Uh, and you know he's still active out there. 889 00:53:27,480 --> 00:53:30,080 Speaker 1: But yeah, this was one of those stories where like 890 00:53:30,160 --> 00:53:33,399 Speaker 1: he had some great ideas and he had a real 891 00:53:33,440 --> 00:53:38,200 Speaker 1: passion for games, something that I think is is really noteworthy. Um, 892 00:53:38,360 --> 00:53:41,640 Speaker 1: and he made some great moves, but not everybody you know, 893 00:53:41,760 --> 00:53:45,080 Speaker 1: bats a thousand. In fact, very few people do, and 894 00:53:45,160 --> 00:53:48,480 Speaker 1: this is a reminder of that. Anyway, that wraps up 895 00:53:48,480 --> 00:53:50,920 Speaker 1: this episode. If you have suggestions for future episodes of 896 00:53:50,920 --> 00:53:53,239 Speaker 1: tech Stuff, reach out to me. You can find me 897 00:53:53,280 --> 00:53:56,920 Speaker 1: on Twitter to handle his text Stuff hs W and 898 00:53:56,960 --> 00:54:05,000 Speaker 1: I'll talk to you again really soon. Yeah. Text Stuff 899 00:54:05,080 --> 00:54:08,239 Speaker 1: is an I Heart Radio production. For more podcasts from 900 00:54:08,239 --> 00:54:12,040 Speaker 1: I Heart Radio, visit the I Heart Radio app, Apple Podcasts, 901 00:54:12,120 --> 00:54:14,120 Speaker 1: or wherever you listen to your favorite shows.