WEBVTT - The Tragedy of 3DO

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<v Speaker 1>Welcome to tech Stuff, a production from I Heart Radio.

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<v Speaker 1>Hey there, and welcome to tech Stuff. I'm your host,

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<v Speaker 1>Jonathan Strickland. I'm an executive producer with I Heart Radio

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<v Speaker 1>and I love all things tech and Back in three

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<v Speaker 1>a new video game console created by the founder of

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<v Speaker 1>Electronic Arts launched, and just three years later that console

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<v Speaker 1>would be discontinued and essentially taken off the market. It

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<v Speaker 1>was a massive failure. The company that made the console

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<v Speaker 1>would stick around a little longer, ultimately closing up shop

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<v Speaker 1>in two thousand three. This is the story of the

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<v Speaker 1>three d O Company and the console that wasn't meant

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<v Speaker 1>to be. Now, for this episode, We're going to focus

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<v Speaker 1>a lot early on at some prehistoric and Eastern terms

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<v Speaker 1>of three d OH information, because I think it's helpful

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<v Speaker 1>to get an understanding of the man who championed the

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<v Speaker 1>idea of the three d O to kind of see

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<v Speaker 1>where he was coming from, what his thought process was.

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<v Speaker 1>If I just focused on the console or even the

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<v Speaker 1>company all by itself, it would be kind of unusual, strange.

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<v Speaker 1>You wouldn't understand why anyone would make these decisions. So

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<v Speaker 1>it's helpful to have the background. Also, I just think

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<v Speaker 1>it's kind of an an interesting story with lots of

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<v Speaker 1>ups and downs. And that story begins with William M. Hawkins,

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<v Speaker 1>the third a k a. Trip Hawkins. He was born

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<v Speaker 1>in nineteen fifty four. He grew up in California, and

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<v Speaker 1>his mother, Dr. Helen Hawkins, was a producer and host

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<v Speaker 1>at a California public broadcast station. She was also a

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<v Speaker 1>prominent feminist and a publications director, very much a influential woman.

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<v Speaker 1>And his father, William Hawkins Jr. Had earned a degree

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<v Speaker 1>in physics before becoming a sales and marketing executive for

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<v Speaker 1>various companies in California, primarily those in the tech sector.

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<v Speaker 1>In the late fifties and then into the sixties. Trips

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<v Speaker 1>father would take a job with a company called Spectral

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<v Speaker 1>Dynamics Corporation, which employed another person who will be an

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<v Speaker 1>important figure early on for the young Trip, that being

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<v Speaker 1>a man named Lane Hawk. But we'll get back to him. So,

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<v Speaker 1>as a kid, Trip loved games, not just playing them,

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<v Speaker 1>but kind of learning how they worked right, What were

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<v Speaker 1>the mechanics behind the games? What was the theory behind

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<v Speaker 1>the games? What led to making a game a fun

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<v Speaker 1>playing experience? You know, it's not easy to develop an

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<v Speaker 1>actual game that is rewarding that balances everything out, and

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<v Speaker 1>he was really interested in that model, and when in

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<v Speaker 1>high school, he would attempt to make his own version

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<v Speaker 1>of various types of games, like he would take inspiration

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<v Speaker 1>from games that existed that he enjoyed and try to

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<v Speaker 1>make his own. He was particularly interested in games that

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<v Speaker 1>simulated sports. He himself loved sports, and so these games

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<v Speaker 1>kind of gave him an outlet to kind of imagine

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<v Speaker 1>himself being part of, like a top class athletic team.

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<v Speaker 1>According to later interviews, Hawkins enjoyed board games but saw

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<v Speaker 1>that many of his friends preferred to spend their spare

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<v Speaker 1>time watching stuff on television, and during a visit to

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<v Speaker 1>the home of his father's coworker that the aforementioned Lane Hawk,

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<v Speaker 1>he saw something that would spark his imagination for a

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<v Speaker 1>future industry. So Lane was fascinated with games as well,

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<v Speaker 1>just like young Trip Hawkins. And he was also really

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<v Speaker 1>into computer systems, which at the time were not a

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<v Speaker 1>consumer product. This is the early seventies. This was even

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<v Speaker 1>before there were hobbyist kits to purchase. Lane had spent

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<v Speaker 1>a lot of money, like more than five grand, which

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<v Speaker 1>in the nineteen seventies, wasn't even more princely some than

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<v Speaker 1>we would think of today, And five thousand dollars is

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<v Speaker 1>a lot of money, but he spent that to buy

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<v Speaker 1>what today would be an incredibly primitive mini computer. But

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<v Speaker 1>at the time it was well, it was kind of

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<v Speaker 1>showing its age at the time, but it was at

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<v Speaker 1>one point state of the art. It was called the

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<v Speaker 1>PDP eight. Now, when this computer first debuted in the

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<v Speaker 1>nineteen sixties, when it really was, you know, cutting edge

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<v Speaker 1>type of technology, it costs a whopping eighteen thousand, five

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<v Speaker 1>hundred dollars, but this was well beyond the heyday of

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<v Speaker 1>the PDP eight. And it was also a really big computer.

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<v Speaker 1>It was like the size of like a cabinet, like

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<v Speaker 1>a wardrobe, or a small refrigerator. It was a twelve

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<v Speaker 1>bit machine, meaning it could handle a range of in

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<v Speaker 1>jurors from zero to four thousand ninety five, or you

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<v Speaker 1>could do from negative two thousand forty eight to two

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<v Speaker 1>thousand forty seven. Zero would be taking up that pesky

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<v Speaker 1>spot in the middle. And programming for the machine was,

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<v Speaker 1>from what I understand anyway, not intuitive. It was not

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<v Speaker 1>an easy thing to program for. But Lane wanted something

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<v Speaker 1>that he could kind of work on in his spare

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<v Speaker 1>time to putter around with. It was almost like a

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<v Speaker 1>project car for someone who's a gear head. For Lane,

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<v Speaker 1>it was a PDP eight and he hooked up this

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<v Speaker 1>computer to a teletype printer. There was no display, There

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<v Speaker 1>was no monitor for the PDP eight, so you couldn't,

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<v Speaker 1>you know, look at a screen and see what you

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<v Speaker 1>were working on. And instead you used a teletype printer

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<v Speaker 1>and the printer would print out the information that you

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<v Speaker 1>were working on. With the computer, you would read it,

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<v Speaker 1>you would make changes, it would print on a new page.

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<v Speaker 1>It's a pretty painstaking process. Well, Lane created a game

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<v Speaker 1>he called MoU Oo, as in what cows say, at

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<v Speaker 1>least in the United States, and the game was pretty simple.

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<v Speaker 1>The game would generate a four digit number and it

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<v Speaker 1>would keep that number secret. So the game has a

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<v Speaker 1>four digit number and it was your job as the

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<v Speaker 1>player to figure out what that four digit number was,

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<v Speaker 1>and you would submit your own guests. You would put

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<v Speaker 1>in a four digit number and the computer would tell

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<v Speaker 1>you how many digits, if any, you got right, and

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<v Speaker 1>whether or not any of those digits were in the

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<v Speaker 1>right place. So let's say that the secret number the

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<v Speaker 1>computer comes up with is eight to nine five, and

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<v Speaker 1>my guess is one five nine three. The system would

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<v Speaker 1>tell me I got one correct digit in the right

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<v Speaker 1>location because I got the nine correct and it's in

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<v Speaker 1>the right spot. And I got a second digit correct,

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<v Speaker 1>but it's not in the right spot. My five is

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<v Speaker 1>in the wrong position of that four digit number. So

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<v Speaker 1>it's similar to a board game that would come out

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<v Speaker 1>a little later called Mastermind. That one uses colors, not numbers,

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<v Speaker 1>but it's a similar idea. Now, move did this using

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<v Speaker 1>moves and cows. A cow would indicate that you had

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<v Speaker 1>the right digit, but it was in the wrong place.

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<v Speaker 1>A move would indicate that you had a right digit,

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<v Speaker 1>but and it was in the right place. But you

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<v Speaker 1>wouldn't be told which one was which right. You wouldn't

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<v Speaker 1>be told which of the digits was the correct one.

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<v Speaker 1>You would just know, Oh, I've got, you know, two

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<v Speaker 1>moves and a cow, and then my fourth digit is wrong.

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<v Speaker 1>So I've got to start changing this out and narrowing

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<v Speaker 1>down what that four digit number could possibly be. And

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<v Speaker 1>I assume you had to do it in a certain

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<v Speaker 1>number of turns, But none of my research found anything

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<v Speaker 1>about that. But for our story, The important part is

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<v Speaker 1>when Trip Hawkins saw Lanes set up, something must have

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<v Speaker 1>switched on in Trip's brain. He saw the potential for

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<v Speaker 1>computers to bring together the world's of television and bore

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<v Speaker 1>to games. He imagined a world where one day people

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<v Speaker 1>could play games on computers with displays, and that's what

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<v Speaker 1>he wanted to do. He wanted to make games for computers.

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<v Speaker 1>There was no real way to do that at that time.

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<v Speaker 1>There was no way for the average consumer to even

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<v Speaker 1>get hold of a computer at that stage, but Hawkins

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<v Speaker 1>was certain this was where things were going to go,

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<v Speaker 1>and Lane Hawk would go on to develop some early

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<v Speaker 1>arcade games, but that's a story for another time. According

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<v Speaker 1>to Trip Hawkins himself, around nineteen seventy five, he laid

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<v Speaker 1>out a long term plan that would lead towards the

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<v Speaker 1>founding of a computer game company by the year nineteen

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<v Speaker 1>eighty two, but he had a lot of challenges to

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<v Speaker 1>overcome to actually make that happen. Now. He applied and

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<v Speaker 1>was accepted at Harvard and he was a student there

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<v Speaker 1>in the early nineteen seventies, and he wanted to work

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<v Speaker 1>in an industry that just didn't exist yet, and that

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<v Speaker 1>also meant he face a love challenges when it came

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<v Speaker 1>to his studies. It's not like there were degrees and

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<v Speaker 1>what he wanted to do, because the thing he wanted

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<v Speaker 1>to do wasn't a thing yet. So he started to

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<v Speaker 1>kind of put together his studies in a piecemeal fashion,

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<v Speaker 1>you know, taking classes and computer science and programming and

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<v Speaker 1>related topics. And at the end of his stay at

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<v Speaker 1>Harvard he hadn't just earned a degree, he had essentially

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<v Speaker 1>invented a degree in applied game theory and design. Hawkins

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<v Speaker 1>then went on to pursue postgraduate work at Stanford, where

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<v Speaker 1>he earned an NBA in nineteen seventy eight. By this time,

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<v Speaker 1>technology was slowly starting to build the foundation that Hawkins

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<v Speaker 1>would need to pursue his dream of creating a video

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<v Speaker 1>game company. UH the twenty hundred he debuted the year

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<v Speaker 1>before he got his m b A, and that took

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<v Speaker 1>a leading position in the new field of home video

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<v Speaker 1>game consoles. That same year, in nineteen seventy seven, Apple

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<v Speaker 1>would unveil the Apple two computer, which was the first

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<v Speaker 1>personal computer from Apple that took aim beyond the relatively

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<v Speaker 1>small harp hobbyist market. The original Apple computer was a

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<v Speaker 1>kit you might even see pictures of old Apple one

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<v Speaker 1>computers in wooden cabinets. That's the original Apple. But the

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<v Speaker 1>Apple two was the first real consumer personal computer, and

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<v Speaker 1>it was still too soon for Hawkins to really pursue

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<v Speaker 1>his plans to make a video game company. In addition,

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<v Speaker 1>while in college, Hawkins had made, marketed, and sold his

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<v Speaker 1>own board game after taking a loan from his father.

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<v Speaker 1>His father loaned him the princely some of five thousand dollars,

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<v Speaker 1>which again that's a lot of money. And people liked

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<v Speaker 1>the game that Hawkins made, but there weren't enough people

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<v Speaker 1>who actually bought it to make it a success. It

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<v Speaker 1>was a failure. And that failure, I think convinced Hawkins

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<v Speaker 1>that he really needed to be methought iCal and patient

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<v Speaker 1>before launching his business. It would be a bad idea

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<v Speaker 1>to rush into things. He had already seen what you know,

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<v Speaker 1>a misstep could do. It could be a very expensive mistake.

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<v Speaker 1>So Hawkins would conduct the first complete study of the

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<v Speaker 1>personal computer market in nine and that's back when it

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<v Speaker 1>was a very young field. There were a lot of

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<v Speaker 1>different computers out there, the Apples, the trs a D

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<v Speaker 1>or trash a D computer, the you know, the Tandy,

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<v Speaker 1>the Commodore sixty four. Those were coming out around this time,

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<v Speaker 1>some of them a little later, and he started to

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<v Speaker 1>get a feel for where things were headed and how

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<v Speaker 1>he might best be able to take part in a

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<v Speaker 1>technological revolution. While in school, he attended a computer fair

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<v Speaker 1>and he actually saw the Apple two debut in person.

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<v Speaker 1>He was at that computer fair and he decided that

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<v Speaker 1>he would apply to work for a computer company upon graduating,

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<v Speaker 1>and he did. He applied to a lot of different places,

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<v Speaker 1>and the one that gave him an offer that he

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<v Speaker 1>accepted was Apple. The company was happy to bring him

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<v Speaker 1>on board. He was the first MBA in the company,

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<v Speaker 1>which he joking Lee said, is always a scary thing.

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<v Speaker 1>You never want to be the first NBA in a company.

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<v Speaker 1>But he joined when there were somewhere between twenty five

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<v Speaker 1>and fifty people working there. Sources don't fully agree on this,

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<v Speaker 1>which is often the case when I researched stuff in

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<v Speaker 1>computer history, though Hawkins himself has said there were about

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<v Speaker 1>fifty employees. However, twenty five of them were primarily responsible

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<v Speaker 1>for physically assembling the computers, so maybe really the sources

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<v Speaker 1>kind of agree. It's just that some of the sources

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<v Speaker 1>ignore the assembly line workers and only focus on the

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<v Speaker 1>you know, the Apple management and officers. That seems a

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<v Speaker 1>bit elitist to me, but maybe that's what's going on anyway.

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<v Speaker 1>This was right as the Apple two started to get

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<v Speaker 1>some traction. As one of the earliest successful personal computers

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<v Speaker 1>that was available on the market. At Apple, Hawkins would

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<v Speaker 1>gain a lot of real world experience while taking on

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<v Speaker 1>an increasing amount of responsibility. He helped guide Apple's efforts

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<v Speaker 1>to getting computers into workplaces, and he encouraged the development

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<v Speaker 1>of various productivity applications like spreadsheet programs. Hawkins has said,

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<v Speaker 1>quote I didn't invent the spreadsheet, but I did bring

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<v Speaker 1>the first spreadsheet apps into Apple end quote. This would

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<v Speaker 1>allow Apple to compete in markets where previously IBM was

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<v Speaker 1>really the king of the castle. Four years after joining

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<v Speaker 1>Apple Trip, Hawkins was the director of Strategy and Marketing, Which,

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<v Speaker 1>you know, that's a heck of an achievement to go

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<v Speaker 1>to a director level position within four years, even if

0:13:43.720 --> 0:13:46.439
<v Speaker 1>you and you know, take into account the fact that

0:13:46.480 --> 0:13:49.560
<v Speaker 1>the office staff had really only numbered twenty five employees

0:13:49.559 --> 0:13:52.480
<v Speaker 1>when he joined the company and Apple had just held

0:13:52.559 --> 0:13:56.679
<v Speaker 1>its initial public offering, and that ended up making Hawkins

0:13:56.720 --> 0:14:01.679
<v Speaker 1>a pretty healthy amount of cash. But this means that

0:14:01.720 --> 0:14:04.760
<v Speaker 1>we were just getting up to two. And if you

0:14:04.800 --> 0:14:07.600
<v Speaker 1>remember what I said a little earlier in this episode,

0:14:08.080 --> 0:14:11.600
<v Speaker 1>that was the year that Hawkins had predicted way back

0:14:11.600 --> 0:14:15.560
<v Speaker 1>in n that he would launch a computer game company,

0:14:15.640 --> 0:14:18.680
<v Speaker 1>or at least that's what his plan had called for,

0:14:19.120 --> 0:14:23.040
<v Speaker 1>and other computer game companies were already getting off the

0:14:23.120 --> 0:14:26.560
<v Speaker 1>ground around this time. At home video game consoles like

0:14:26.600 --> 0:14:32.520
<v Speaker 1>the AD had spawned numerous game development companies. Hawkins made

0:14:32.560 --> 0:14:35.760
<v Speaker 1>his move to follow through on his plan that his

0:14:35.880 --> 0:14:39.880
<v Speaker 1>younger self had created, and he left Apple to found

0:14:39.960 --> 0:14:43.520
<v Speaker 1>his computer game company, now Trip. Hawkins says that at

0:14:43.560 --> 0:14:47.240
<v Speaker 1>the time, he thought video game developers were, on the

0:14:47.280 --> 0:14:53.120
<v Speaker 1>whole not treated so well. They were frequently treated like

0:14:53.360 --> 0:14:57.720
<v Speaker 1>cheap contract labor on a game by game basis, and

0:14:57.800 --> 0:15:01.040
<v Speaker 1>Hawkins aimed to create a company that turned that on

0:15:01.120 --> 0:15:04.680
<v Speaker 1>its head. And that was the birth of Electronic Arts

0:15:05.040 --> 0:15:07.840
<v Speaker 1>better known today as e A. And it was back

0:15:07.880 --> 0:15:12.560
<v Speaker 1>in two. When we come back, we'll give a super

0:15:12.640 --> 0:15:16.880
<v Speaker 1>high level overview of hawkins vision of e A and

0:15:17.040 --> 0:15:21.040
<v Speaker 1>how that would lead him to found another company, the

0:15:21.080 --> 0:15:32.200
<v Speaker 1>three D O Company. But first let's take a quick break. Today.

0:15:32.480 --> 0:15:35.400
<v Speaker 1>The name E A has I guess it's fair to

0:15:35.400 --> 0:15:38.200
<v Speaker 1>say a little bit of baggage along with it. The

0:15:38.240 --> 0:15:41.920
<v Speaker 1>company has a reputation for doing some stuff that rubs

0:15:42.000 --> 0:15:45.240
<v Speaker 1>gamers the wrong way, the big one being that it

0:15:45.320 --> 0:15:48.520
<v Speaker 1>has a history of scooping up smaller video game developers

0:15:48.960 --> 0:15:54.120
<v Speaker 1>and then kind of sapping the intellectual property those video

0:15:54.120 --> 0:15:58.680
<v Speaker 1>game developers had created and just draining it dry and

0:15:58.760 --> 0:16:02.280
<v Speaker 1>having the developers anguish a bit before shutting them down.

0:16:02.760 --> 0:16:05.280
<v Speaker 1>U e A has done this to companies like Origin,

0:16:05.520 --> 0:16:10.720
<v Speaker 1>which made The Wing Commander and Ultimate Series, Maxis Pandemic

0:16:10.920 --> 0:16:14.760
<v Speaker 1>Bull Rug Studios. The list is long. In two thousand

0:16:14.800 --> 0:16:18.240
<v Speaker 1>and twelve, e A even made headlines for a really

0:16:18.400 --> 0:16:22.480
<v Speaker 1>not super awesome reason. It was voted the worst company

0:16:22.600 --> 0:16:28.000
<v Speaker 1>in the entire United States. But back in two it

0:16:28.080 --> 0:16:32.680
<v Speaker 1>was a very different company. Hawkins said that he funded

0:16:32.720 --> 0:16:35.160
<v Speaker 1>e A out of his own pocket for the first

0:16:35.240 --> 0:16:38.600
<v Speaker 1>six months, and at the very beginning he was the

0:16:38.640 --> 0:16:41.640
<v Speaker 1>only employee and he was working out of his home

0:16:41.800 --> 0:16:45.440
<v Speaker 1>until he was able to secure some office space in California,

0:16:45.680 --> 0:16:48.640
<v Speaker 1>and then he started to hire on employees, and it

0:16:48.720 --> 0:16:51.560
<v Speaker 1>was only in October, months after he had started. He

0:16:51.600 --> 0:16:54.000
<v Speaker 1>got started in the spring of nineteen eighty two. So

0:16:54.040 --> 0:16:57.480
<v Speaker 1>the fall of nine two he got together with his

0:16:57.560 --> 0:17:01.520
<v Speaker 1>twelve employees. This is starting sound a little biblical, and

0:17:01.560 --> 0:17:06.240
<v Speaker 1>together they brainstormed up the name of the company Electronic Arts.

0:17:06.240 --> 0:17:09.680
<v Speaker 1>And Hawkins had really wanted to stress that games can

0:17:09.720 --> 0:17:13.399
<v Speaker 1>be a form of art and that video game developers

0:17:13.440 --> 0:17:16.640
<v Speaker 1>are artists and they should be recognized as such, and

0:17:16.800 --> 0:17:22.040
<v Speaker 1>Electronic Arts was born. E a's early identities centered around

0:17:22.119 --> 0:17:25.919
<v Speaker 1>compensating and crediting game developers above and beyond what the

0:17:25.960 --> 0:17:29.600
<v Speaker 1>competition offered. You know, like most video games at the time,

0:17:30.160 --> 0:17:32.640
<v Speaker 1>you had no idea who worked on that game. If

0:17:32.680 --> 0:17:37.040
<v Speaker 1>you found out, it was only because some industry magazine

0:17:37.160 --> 0:17:40.000
<v Speaker 1>wrote up an article about the person. Chances are you

0:17:40.080 --> 0:17:43.080
<v Speaker 1>just knew which titles went with which companies, if you

0:17:43.119 --> 0:17:46.600
<v Speaker 1>were even paying that close attention. Hawkins wanted to change that.

0:17:46.720 --> 0:17:50.720
<v Speaker 1>He wanted to say, no, you will start to recognize

0:17:50.760 --> 0:17:54.680
<v Speaker 1>the work of specific video game developers and the ones

0:17:54.760 --> 0:17:57.280
<v Speaker 1>that make the stuff you like, you'll know to keep

0:17:57.400 --> 0:18:00.639
<v Speaker 1>getting their stuff. That was the idea, and the company

0:18:00.720 --> 0:18:04.040
<v Speaker 1>launched early titles like Mule m u l E. It

0:18:04.119 --> 0:18:07.359
<v Speaker 1>was a combat simulation game, and Our Con, which was

0:18:07.440 --> 0:18:11.480
<v Speaker 1>one of my favorite early computer games. It was a

0:18:11.560 --> 0:18:15.560
<v Speaker 1>chess like game in which players would control pieces that

0:18:15.640 --> 0:18:19.600
<v Speaker 1>represented different sort of magical and mythological creatures and characters,

0:18:20.160 --> 0:18:22.359
<v Speaker 1>and you were trying to take control of a board

0:18:22.520 --> 0:18:27.919
<v Speaker 1>by controlling the space occupied by your opponent. So you

0:18:27.960 --> 0:18:31.720
<v Speaker 1>can move a piece into an opponent's square, and that

0:18:31.760 --> 0:18:36.920
<v Speaker 1>would initiate an arcade style dual where you would try

0:18:37.000 --> 0:18:41.399
<v Speaker 1>to beat the other player or your computer opponent in

0:18:41.440 --> 0:18:44.879
<v Speaker 1>a little arcade style game, a little shootout, and different

0:18:44.880 --> 0:18:47.359
<v Speaker 1>pieces had different abilities. Some of them were super fast

0:18:47.440 --> 0:18:50.760
<v Speaker 1>but not very powerful. Some shot very powerful beams but

0:18:50.880 --> 0:18:53.720
<v Speaker 1>moved slowly, and so on. Anyway, I'm getting off track,

0:18:53.800 --> 0:18:56.000
<v Speaker 1>but it was a great game. It's again one of

0:18:56.000 --> 0:18:59.119
<v Speaker 1>my favorites. Any ar Con fans out there give it

0:18:59.160 --> 0:19:01.760
<v Speaker 1>a shout out. The as Man that was one of

0:19:01.800 --> 0:19:06.960
<v Speaker 1>my favorite early computer games. Hawkins, however, his favorite games

0:19:06.960 --> 0:19:10.680
<v Speaker 1>were still sports titles. One early e A sports game

0:19:10.800 --> 0:19:14.680
<v Speaker 1>was Dr J and Larry Bird Go One on One, which,

0:19:14.720 --> 0:19:16.960
<v Speaker 1>if you're not you know, up on the sports ball,

0:19:17.280 --> 0:19:20.320
<v Speaker 1>it's a basketball game. Uh you know. Dr J and

0:19:20.600 --> 0:19:25.560
<v Speaker 1>Larry Bird both famous basketball players, amazing basketball players, and

0:19:25.640 --> 0:19:28.880
<v Speaker 1>Hawkins himself designed the game, or at least was very

0:19:28.880 --> 0:19:31.840
<v Speaker 1>heavily involved in the design of the game, and he

0:19:32.000 --> 0:19:36.080
<v Speaker 1>also brought both of the basketball stars into the design

0:19:36.200 --> 0:19:39.200
<v Speaker 1>phase and the marketing of the title, and that gave

0:19:39.200 --> 0:19:41.959
<v Speaker 1>it some prestige in the market to actually, you know,

0:19:42.040 --> 0:19:46.520
<v Speaker 1>attach real world athletes to this video game title. And

0:19:46.560 --> 0:19:48.919
<v Speaker 1>if you know your video game history, you also know

0:19:49.480 --> 0:19:52.399
<v Speaker 1>that this early period of e A coincided with a

0:19:52.680 --> 0:19:59.040
<v Speaker 1>catastrophic market event around the home video game market began

0:19:59.080 --> 0:20:03.239
<v Speaker 1>to wobble, and by it was in the shambles. And

0:20:03.280 --> 0:20:06.399
<v Speaker 1>I've done full episodes about the video game crash of

0:20:06.480 --> 0:20:10.200
<v Speaker 1>eight three, but the short version is that there were

0:20:10.200 --> 0:20:14.040
<v Speaker 1>a confluence of problems from a flood of bad games

0:20:14.040 --> 0:20:17.399
<v Speaker 1>by fly by Night developers. There were a series of

0:20:17.480 --> 0:20:21.760
<v Speaker 1>terrible business decisions at multiple companies. There was the overproduction

0:20:21.920 --> 0:20:26.720
<v Speaker 1>of titles that meant that the once lucrative industry imploded.

0:20:26.960 --> 0:20:32.200
<v Speaker 1>Then there are other elements to like licensing popular games

0:20:32.359 --> 0:20:37.800
<v Speaker 1>or or entertainment franchises that ended up being a cost

0:20:37.840 --> 0:20:40.520
<v Speaker 1>that you could never recoup that kind of thing. There

0:20:40.520 --> 0:20:43.440
<v Speaker 1>are a lot of really bad decisions and entire companies

0:20:43.480 --> 0:20:46.920
<v Speaker 1>disappeared within a year, and video games in general we're

0:20:46.960 --> 0:20:50.160
<v Speaker 1>seen as a failure so much so that retailers didn't

0:20:50.160 --> 0:20:53.399
<v Speaker 1>want to carry video games or video game consoles. And

0:20:53.440 --> 0:20:57.600
<v Speaker 1>it was only by kind of pivoting toward computers that

0:20:57.960 --> 0:21:01.800
<v Speaker 1>companies related to the video game space could stay afloat.

0:21:02.280 --> 0:21:05.320
<v Speaker 1>And you know, e A had primarily been developing titles

0:21:05.359 --> 0:21:08.560
<v Speaker 1>for computers, but it wasn't immune to this problem either.

0:21:08.920 --> 0:21:12.080
<v Speaker 1>The company shifted a little bit in its initial strategy.

0:21:12.440 --> 0:21:15.160
<v Speaker 1>You know again that was originally to promote games by

0:21:15.240 --> 0:21:19.080
<v Speaker 1>associating those games with the designers who made them. But

0:21:19.200 --> 0:21:22.400
<v Speaker 1>now e A was focusing more on promoting specific game

0:21:22.480 --> 0:21:27.000
<v Speaker 1>titles and making franchises out of them, rather than saying, oh,

0:21:27.040 --> 0:21:29.720
<v Speaker 1>this is a game by so and so. The company

0:21:29.760 --> 0:21:33.879
<v Speaker 1>focused exclusively on developing games for various computer platforms like

0:21:33.960 --> 0:21:37.920
<v Speaker 1>the Apple computers you know, IBM PCs, the Commodore sixty four,

0:21:38.040 --> 0:21:42.119
<v Speaker 1>and others at that time. Then Nintendo came along and

0:21:42.200 --> 0:21:46.600
<v Speaker 1>managed to do what most analysts thought was impossible. Nintendo

0:21:46.680 --> 0:21:50.119
<v Speaker 1>was able to bring consoles back from the dead. The

0:21:50.240 --> 0:21:53.520
<v Speaker 1>Nintendo Entertainment System here in the United States, also know

0:21:53.600 --> 0:21:58.439
<v Speaker 1>as the Famicom, became a Grand slam home run of

0:21:58.480 --> 0:22:00.919
<v Speaker 1>a hit. I thought I would use an analogy that

0:22:00.920 --> 0:22:04.480
<v Speaker 1>Trip Hawkins himself would probably appreciate, but it would take

0:22:04.520 --> 0:22:07.520
<v Speaker 1>many years for e A to start to develop games

0:22:07.520 --> 0:22:11.919
<v Speaker 1>for console systems in earnest because Hawkins was one he

0:22:12.000 --> 0:22:15.600
<v Speaker 1>was wary of consoles after the Crash of three and two.

0:22:15.640 --> 0:22:17.359
<v Speaker 1>He was pretty sure the PC was going to be

0:22:17.400 --> 0:22:21.560
<v Speaker 1>the future of gaming. When Sega launched the Sega Genesis

0:22:21.880 --> 0:22:25.120
<v Speaker 1>a k a. The Mega Drive in nineteen eighty nine,

0:22:25.320 --> 0:22:27.800
<v Speaker 1>at least in North America, it launched in different parts

0:22:27.840 --> 0:22:31.120
<v Speaker 1>of the world at different times. It launched in Japan earlier,

0:22:31.200 --> 0:22:34.439
<v Speaker 1>for example, but trip Hawkins would relent a bit and

0:22:34.480 --> 0:22:39.000
<v Speaker 1>negotiated a favorable but not perfect deal with Sega for

0:22:39.640 --> 0:22:42.440
<v Speaker 1>the e E for e A tow to publish games

0:22:42.760 --> 0:22:45.720
<v Speaker 1>on Sega's console, and at that point e A would

0:22:45.720 --> 0:22:49.360
<v Speaker 1>also develop a few games for the Nintendo Entertainment System

0:22:49.400 --> 0:22:52.240
<v Speaker 1>and got a little bit out of that niche market

0:22:52.240 --> 0:22:55.040
<v Speaker 1>of just developing computer games. Now we get to a

0:22:55.080 --> 0:22:57.080
<v Speaker 1>point where we start to see where the three D

0:22:57.240 --> 0:23:01.640
<v Speaker 1>O company idea starts to creep into hawkins mind. Now

0:23:01.680 --> 0:23:03.960
<v Speaker 1>to understand why Hawkins would try to get into the

0:23:04.000 --> 0:23:08.199
<v Speaker 1>console market after he had kind of grown wary of

0:23:08.240 --> 0:23:11.119
<v Speaker 1>it after the Crash of three, you have to know

0:23:11.160 --> 0:23:15.840
<v Speaker 1>a bit about the relationship between video game developers and

0:23:15.960 --> 0:23:19.800
<v Speaker 1>the companies that actually manufacture the hardware that those games

0:23:20.000 --> 0:23:22.800
<v Speaker 1>run on, the main the console manufacturers. In other words,

0:23:23.480 --> 0:23:27.160
<v Speaker 1>Sega in particular was kind of a thorn in the

0:23:27.200 --> 0:23:31.800
<v Speaker 1>industry side, particularly for Trip Hawkins. Sega would insist on

0:23:31.920 --> 0:23:36.080
<v Speaker 1>steep royalties. Now that meant that game publishers would have

0:23:36.119 --> 0:23:39.440
<v Speaker 1>to pay a certain amount of money per game sold

0:23:40.000 --> 0:23:43.440
<v Speaker 1>back to Sega in order to have the games run

0:23:43.480 --> 0:23:46.600
<v Speaker 1>on Sega machines. So let's say that you, as a consumer,

0:23:46.720 --> 0:23:49.119
<v Speaker 1>are going out to buy an e A game for

0:23:49.119 --> 0:23:52.440
<v Speaker 1>the Sega Genesis. Who is getting paid, Well, it turns

0:23:52.440 --> 0:23:55.520
<v Speaker 1>out a lot of people are getting paid. First, there's

0:23:55.560 --> 0:23:57.880
<v Speaker 1>the brick and mortar store where you bought your game,

0:23:58.000 --> 0:24:00.800
<v Speaker 1>because again this is back in the late eighties, there's

0:24:00.920 --> 0:24:05.040
<v Speaker 1>not really any other opportunity. But those merchants in turn

0:24:05.200 --> 0:24:08.720
<v Speaker 1>had to spend money to get the stock to sell

0:24:08.800 --> 0:24:12.920
<v Speaker 1>in the first place. So they would buy their copies

0:24:12.960 --> 0:24:15.199
<v Speaker 1>of the games that they sell to consumers like you

0:24:15.840 --> 0:24:18.760
<v Speaker 1>from e A or from a video game distributor. But

0:24:18.840 --> 0:24:22.720
<v Speaker 1>let's not get too complicated. E A in turn would

0:24:22.720 --> 0:24:26.040
<v Speaker 1>have to share a portion of each of those sales

0:24:26.080 --> 0:24:32.120
<v Speaker 1>two retailers back with Sega. Sega demanded high royalties, so

0:24:32.240 --> 0:24:35.040
<v Speaker 1>that meant a smaller percentage of the money would go

0:24:35.080 --> 0:24:37.800
<v Speaker 1>to e A. E A would develop the games, but

0:24:38.320 --> 0:24:41.040
<v Speaker 1>some of that money was gonna go to Sega, not

0:24:41.160 --> 0:24:43.840
<v Speaker 1>to e A. And Hawkins felt that there was a

0:24:43.840 --> 0:24:46.520
<v Speaker 1>big power imbalance there and he wanted a way to

0:24:46.560 --> 0:24:49.879
<v Speaker 1>address it. And he thought if he could make a

0:24:49.920 --> 0:24:54.639
<v Speaker 1>company that designed video game systems and he didn't impose

0:24:54.880 --> 0:24:59.800
<v Speaker 1>such high royalties on publishers, then creators would have a

0:25:00.040 --> 0:25:04.200
<v Speaker 1>later degree of freedom and a large incentive to develop

0:25:04.280 --> 0:25:06.480
<v Speaker 1>games for that system, and it would usher in a

0:25:06.560 --> 0:25:10.159
<v Speaker 1>new era of amazing games. This was keyed back into

0:25:10.200 --> 0:25:14.760
<v Speaker 1>that artist's first mentality and let's face it, a desire

0:25:14.840 --> 0:25:18.520
<v Speaker 1>to keep more of the revenue for the publisher, not

0:25:18.880 --> 0:25:21.879
<v Speaker 1>send it off to, you know, the console maker. The

0:25:21.960 --> 0:25:24.520
<v Speaker 1>three D O model was to impose a flat three

0:25:24.600 --> 0:25:28.680
<v Speaker 1>dollar royalty rate per games sold, which was much lower

0:25:28.800 --> 0:25:31.919
<v Speaker 1>than the royalties that were being imposed by Sega or

0:25:32.000 --> 0:25:37.360
<v Speaker 1>Nintendo at the time. Hawkins had a fairly radical idea. Now,

0:25:37.400 --> 0:25:41.240
<v Speaker 1>the standard practice for console hardware is for a single

0:25:41.280 --> 0:25:45.880
<v Speaker 1>company like Nintendo or Sega or Sony to design and

0:25:45.960 --> 0:25:49.880
<v Speaker 1>manufacture the systems themselves. These companies could have their own

0:25:49.920 --> 0:25:53.879
<v Speaker 1>in house development studios, but they would also negotiate deals

0:25:53.920 --> 0:25:58.600
<v Speaker 1>with external video game studios to publish titles on those consoles.

0:25:58.640 --> 0:26:01.040
<v Speaker 1>And Hawkins wanted to kind of turn that model on

0:26:01.119 --> 0:26:04.120
<v Speaker 1>its head, and his idea was to create a company

0:26:04.119 --> 0:26:07.800
<v Speaker 1>that would design the specs and architecture for a video

0:26:07.800 --> 0:26:12.159
<v Speaker 1>game console, but then that company would license out the

0:26:12.280 --> 0:26:17.679
<v Speaker 1>design for other manufacturers to actually make to fabricate those consoles.

0:26:18.040 --> 0:26:21.359
<v Speaker 1>So if you listen to my episode about ARM processors,

0:26:21.880 --> 0:26:25.480
<v Speaker 1>you'll recognize this model as ARM followed the same pathway.

0:26:25.800 --> 0:26:28.919
<v Speaker 1>It's something that in Vidio does with graphics cards, although

0:26:28.960 --> 0:26:32.640
<v Speaker 1>in Video also will manufacture cards in house in addition

0:26:32.680 --> 0:26:36.600
<v Speaker 1>to licensing out the designs to other fabricators. To focus

0:26:36.640 --> 0:26:40.680
<v Speaker 1>on three d O, Hawkins stepped down as the CEO

0:26:40.880 --> 0:26:43.840
<v Speaker 1>of e A, which would come back to haunt him later.

0:26:44.200 --> 0:26:46.360
<v Speaker 1>He would remain the chairman of the Board of Directors

0:26:46.400 --> 0:26:49.479
<v Speaker 1>for a while, but he would become the CEO of

0:26:49.640 --> 0:26:52.800
<v Speaker 1>three d O now and all these initialisms are really

0:26:52.840 --> 0:26:56.480
<v Speaker 1>wearing me out. Beyond the goal of creating a design

0:26:56.600 --> 0:26:59.560
<v Speaker 1>for a new console, there were a few other considerations

0:26:59.600 --> 0:27:01.760
<v Speaker 1>going in to the three d OH. But it helps

0:27:02.160 --> 0:27:05.200
<v Speaker 1>if we take a snapshot look of where the video

0:27:05.240 --> 0:27:09.720
<v Speaker 1>game console industry was in ninete. That was the year

0:27:09.800 --> 0:27:12.040
<v Speaker 1>of three d O s founding. So what was going

0:27:12.080 --> 0:27:16.480
<v Speaker 1>on with video game consoles in ninety one, Well, generally speaking,

0:27:16.720 --> 0:27:20.800
<v Speaker 1>the consoles of we're in what we would refer to

0:27:20.960 --> 0:27:25.840
<v Speaker 1>as the fourth generation of video game consoles. The first generation,

0:27:26.080 --> 0:27:29.480
<v Speaker 1>which started in the nineteen seventies, had largely been consoles

0:27:29.560 --> 0:27:33.680
<v Speaker 1>with games that were hardwired onto the systems, meaning you

0:27:33.720 --> 0:27:37.080
<v Speaker 1>couldn't switch out games or anything. The console would have

0:27:37.200 --> 0:27:41.480
<v Speaker 1>one or more games programmed on it and that was that.

0:27:41.480 --> 0:27:44.320
<v Speaker 1>That was what you were limited to. The second generation

0:27:44.359 --> 0:27:47.320
<v Speaker 1>of consoles is the one that had the Atari twenty

0:27:47.640 --> 0:27:49.840
<v Speaker 1>hundred in it. That was part of the second generation.

0:27:50.520 --> 0:27:53.119
<v Speaker 1>This was the generation that was around during the Crash

0:27:53.119 --> 0:27:55.800
<v Speaker 1>of nineteen eighty three. A lot of these consoles had,

0:27:56.160 --> 0:27:58.640
<v Speaker 1>you know, cartridge based system so you could switch out

0:27:58.680 --> 0:28:02.160
<v Speaker 1>games and that kind of stuff. The third generation included

0:28:02.200 --> 0:28:06.119
<v Speaker 1>the Nintendo Entertainment System, the Sega Master System, and a

0:28:06.160 --> 0:28:10.000
<v Speaker 1>few other consoles. Now keep in mind, these generations aren't

0:28:10.160 --> 0:28:13.240
<v Speaker 1>like hard and fast with solid boundaries. It's not like,

0:28:13.680 --> 0:28:16.760
<v Speaker 1>you know, after seven you go from one generation to

0:28:16.800 --> 0:28:19.720
<v Speaker 1>the next, they're a little more fuzzy. But while Hawkins

0:28:19.760 --> 0:28:21.560
<v Speaker 1>was working on the design of the three D O,

0:28:22.119 --> 0:28:25.200
<v Speaker 1>the leading consoles on the market included the Super Nintendo

0:28:25.320 --> 0:28:29.680
<v Speaker 1>Entertainment System which came out in nine, the Sega Genesis,

0:28:29.760 --> 0:28:33.119
<v Speaker 1>which had actually come out in nine, and the Turbo

0:28:33.200 --> 0:28:39.560
<v Speaker 1>Graphics sixteen. These were all fourth generation video game consoles. Uh.

0:28:39.600 --> 0:28:41.400
<v Speaker 1>There were others that were on the market as well,

0:28:41.440 --> 0:28:44.040
<v Speaker 1>they just weren't as popular. There was the Phillips c

0:28:44.200 --> 0:28:47.400
<v Speaker 1>D I UH, Sega would include the Sega c D

0:28:47.960 --> 0:28:50.040
<v Speaker 1>as a type of system, and there were a couple

0:28:50.040 --> 0:28:52.720
<v Speaker 1>of other systems that were on the horizon in nine

0:28:53.000 --> 0:28:55.840
<v Speaker 1>one when three D A was coming together. But while

0:28:55.880 --> 0:28:58.400
<v Speaker 1>the systems like the S and E S, the Genesis,

0:28:58.440 --> 0:29:01.640
<v Speaker 1>and the base Turbo Graphics six team, we're all cartridge

0:29:01.640 --> 0:29:05.520
<v Speaker 1>based games where the game is you know, hard coded

0:29:05.600 --> 0:29:10.239
<v Speaker 1>onto the circuit board of a video game cartridge. The

0:29:10.280 --> 0:29:16.040
<v Speaker 1>future was moving toward optical discs compact discs in the

0:29:16.080 --> 0:29:18.680
<v Speaker 1>game space. That was clearly where things were going, although

0:29:18.720 --> 0:29:23.360
<v Speaker 1>some companies cough Nintendo cough would resist that longer than others.

0:29:24.160 --> 0:29:27.280
<v Speaker 1>Now the standard of the time, the fourth generation consoles

0:29:27.360 --> 0:29:31.280
<v Speaker 1>was for sixteen bit graphics with processors that ranged on

0:29:31.320 --> 0:29:34.520
<v Speaker 1>the low end with eight bit CPUs. The Turbo Graphics

0:29:34.600 --> 0:29:38.640
<v Speaker 1>sixteen had an eight bit CPU, and eventually the fourth

0:29:38.720 --> 0:29:41.800
<v Speaker 1>generation would include a couple of systems that had thirty

0:29:41.840 --> 0:29:45.120
<v Speaker 1>two bit CPUs with like the sake of thirty two X.

0:29:45.480 --> 0:29:48.160
<v Speaker 1>Although thirty two bit systems saw limited release in the

0:29:48.200 --> 0:29:51.800
<v Speaker 1>fourth generation and limited success, they really came in on

0:29:51.840 --> 0:29:53.680
<v Speaker 1>the tail end of the fourth generation that would play

0:29:53.680 --> 0:29:56.480
<v Speaker 1>a bigger part in the fifth generation of games. It

0:29:56.480 --> 0:29:59.120
<v Speaker 1>would take a couple of years to design the three

0:29:59.200 --> 0:30:03.000
<v Speaker 1>d O and land licensing deals with manufacturers interested in

0:30:03.040 --> 0:30:06.000
<v Speaker 1>making the new console. The launch of the three d

0:30:06.120 --> 0:30:08.920
<v Speaker 1>O would put it in direct competition with consoles that

0:30:09.080 --> 0:30:12.440
<v Speaker 1>belonged to the fifth generation of game systems. More in

0:30:12.520 --> 0:30:17.080
<v Speaker 1>those in a minute, so the pressure was on. The

0:30:17.080 --> 0:30:19.479
<v Speaker 1>three d O would need to be better than the

0:30:19.520 --> 0:30:23.040
<v Speaker 1>existing consoles in the fourth generation or it would quickly

0:30:23.040 --> 0:30:26.040
<v Speaker 1>be left behind by the next generation of systems from

0:30:26.080 --> 0:30:29.360
<v Speaker 1>other manufacturers. So the lead designers for the three d

0:30:29.480 --> 0:30:33.400
<v Speaker 1>O were a couple of guys named Dave Needle and R. J. Michael,

0:30:33.880 --> 0:30:37.280
<v Speaker 1>both of whom had worked on systems or other companies together.

0:30:37.760 --> 0:30:40.560
<v Speaker 1>In fact, Needle and Michael had both worked with Commodore

0:30:40.920 --> 0:30:45.680
<v Speaker 1>to design the Amiga computer system. I've done episodes about Amiga,

0:30:46.000 --> 0:30:49.720
<v Speaker 1>and that story is pretty darn interesting. I really recommend

0:30:49.800 --> 0:30:53.400
<v Speaker 1>you look into it. It's a fascinating story. So I

0:30:53.440 --> 0:30:55.880
<v Speaker 1>recommend checking out those episodes. In particular, I think I

0:30:55.920 --> 0:30:58.880
<v Speaker 1>did a bang up job, if I don't mind saying so,

0:30:59.360 --> 0:31:01.640
<v Speaker 1>And you can see how that particular project came about

0:31:01.680 --> 0:31:04.040
<v Speaker 1>and how it gradually faded away. But the two had

0:31:04.080 --> 0:31:08.560
<v Speaker 1>also designed the Links handheld system for Atari. That's l

0:31:08.880 --> 0:31:12.520
<v Speaker 1>y n X because Atari was naming their systems after

0:31:12.640 --> 0:31:15.880
<v Speaker 1>cats for a while, and now they would be designing

0:31:15.920 --> 0:31:20.120
<v Speaker 1>the three D O specs for trip Hawkins now. According

0:31:20.160 --> 0:31:24.560
<v Speaker 1>to at least some versions of the story, the design

0:31:24.640 --> 0:31:26.480
<v Speaker 1>for the three D O really got to start in

0:31:26.560 --> 0:31:30.880
<v Speaker 1>nine nine, when Needle and Michael had sketched out their

0:31:30.920 --> 0:31:34.760
<v Speaker 1>ideas on a napkin and Trip Hawkins had known these

0:31:34.800 --> 0:31:38.040
<v Speaker 1>two for for years, and after learning about what they

0:31:38.080 --> 0:31:41.000
<v Speaker 1>had in mind, he decided he wanted to join forces

0:31:41.040 --> 0:31:44.840
<v Speaker 1>with them in an effort to shape this into the

0:31:44.960 --> 0:31:48.640
<v Speaker 1>three D O idea he was kind of thinking on.

0:31:49.040 --> 0:31:52.080
<v Speaker 1>So together they formed the three D O Company. The

0:31:52.360 --> 0:31:54.840
<v Speaker 1>full name for the console would become the three d

0:31:55.000 --> 0:31:58.320
<v Speaker 1>O Interactive Multiplayer, but a lot of people just call

0:31:58.360 --> 0:32:00.840
<v Speaker 1>it the three d O. That does make things a

0:32:00.880 --> 0:32:03.360
<v Speaker 1>little confusing because that was also the name of the

0:32:03.360 --> 0:32:06.360
<v Speaker 1>company as well, and we'll learn the company managed to

0:32:06.440 --> 0:32:09.680
<v Speaker 1>stick around a little longer than the console did, so

0:32:09.760 --> 0:32:12.640
<v Speaker 1>it gets a little, you know, fuzzy when used to

0:32:12.800 --> 0:32:15.800
<v Speaker 1>just use three d O as the name. Hawkins looked

0:32:15.800 --> 0:32:19.200
<v Speaker 1>to partner with different electronics manufacturers to license the design

0:32:19.320 --> 0:32:22.400
<v Speaker 1>for the actual production of the three d O Building

0:32:22.440 --> 0:32:26.760
<v Speaker 1>a hardware company would have been monumentally expensive, so he

0:32:26.840 --> 0:32:29.520
<v Speaker 1>decided that licensing it just made more sense, and he

0:32:29.560 --> 0:32:35.960
<v Speaker 1>approached in particular Panasonic, Sony and Sego. Now, Sony had

0:32:36.120 --> 0:32:40.400
<v Speaker 1>recently had a really bad experience with Nintendo. The two

0:32:40.440 --> 0:32:44.600
<v Speaker 1>companies were supposed to introduce a CD ROM peripheral that

0:32:44.680 --> 0:32:48.280
<v Speaker 1>was intended for the Super Nintendo system and Sony was

0:32:48.280 --> 0:32:51.240
<v Speaker 1>gonna make it, and they had gone really far in

0:32:51.280 --> 0:32:54.440
<v Speaker 1>the in the whole process, but then Nintendo backed out

0:32:54.440 --> 0:32:57.320
<v Speaker 1>of the deal. Worse than that, they backed out uh

0:32:57.400 --> 0:33:01.120
<v Speaker 1>in public at CS and switched to a different company.

0:33:01.120 --> 0:33:06.480
<v Speaker 1>They chose Phillips instead, and ultimately that didn't really go anywhere.

0:33:06.520 --> 0:33:09.200
<v Speaker 1>That product just kind of faded away, so it was

0:33:09.240 --> 0:33:13.080
<v Speaker 1>all for nothing. But Ken Kutaragi, a Sony executive who

0:33:13.160 --> 0:33:16.800
<v Speaker 1>was in charge of this super disc project, pivoted with

0:33:16.880 --> 0:33:20.480
<v Speaker 1>the intent to use the super disc technology as the

0:33:20.520 --> 0:33:25.360
<v Speaker 1>backbone of a new product from Sony, the first PlayStation prototype,

0:33:25.840 --> 0:33:29.280
<v Speaker 1>which actually was very different from the PlayStation that would

0:33:29.280 --> 0:33:32.480
<v Speaker 1>officially debut a couple of years later. But not surprisingly,

0:33:33.320 --> 0:33:36.880
<v Speaker 1>Sony declined Hawkins's offer to license the three d O

0:33:37.000 --> 0:33:42.160
<v Speaker 1>design for manufacture because they already had their PlayStation in development. Sega,

0:33:42.520 --> 0:33:45.080
<v Speaker 1>which if you recall, was the company that had kind

0:33:45.080 --> 0:33:47.880
<v Speaker 1>of inspired Hawkins to pursue the three d O project

0:33:47.920 --> 0:33:51.760
<v Speaker 1>in the first place, also passed on the opportunity to

0:33:52.000 --> 0:33:55.560
<v Speaker 1>make the three D O. Apparently, Sega executives felt it

0:33:55.560 --> 0:33:58.720
<v Speaker 1>would have been too expensive with too small of a

0:33:58.760 --> 0:34:01.479
<v Speaker 1>profit margin to really get into the three d OH

0:34:01.560 --> 0:34:04.600
<v Speaker 1>manufacturing game. And this is one of those cases where

0:34:04.640 --> 0:34:09.239
<v Speaker 1>Sega made the right call. Uh. Those often can seem

0:34:09.280 --> 0:34:11.200
<v Speaker 1>few and far between if you know a lot about

0:34:11.239 --> 0:34:15.000
<v Speaker 1>Sega's history, but this was the right decision. Panasonic, however,

0:34:15.400 --> 0:34:18.400
<v Speaker 1>was a different story. This electronics company was one of

0:34:18.440 --> 0:34:21.520
<v Speaker 1>the biggest in the world, but they didn't have a

0:34:21.640 --> 0:34:25.520
<v Speaker 1>video game console. They didn't develop those. There was an

0:34:25.680 --> 0:34:29.319
<v Speaker 1>entire sector of the electronics market out there that Panasonic

0:34:29.520 --> 0:34:32.880
<v Speaker 1>was not serving. So the company became the first to

0:34:33.080 --> 0:34:36.800
<v Speaker 1>license the three D O design and start on fabrication.

0:34:37.440 --> 0:34:41.399
<v Speaker 1>A little bit later, another Japanese electronics company called Sanio

0:34:41.440 --> 0:34:45.520
<v Speaker 1>would start making their own three D O consoles. They

0:34:45.560 --> 0:34:48.640
<v Speaker 1>also licensed it from three d O. Now. Snio started

0:34:48.640 --> 0:34:53.879
<v Speaker 1>off in n during what was effectively a purge at Panasonic.

0:34:53.920 --> 0:34:57.080
<v Speaker 1>It was a post World War two purge of the

0:34:57.160 --> 0:34:59.840
<v Speaker 1>Japanese company. For that whole story, you should listen to

0:34:59.880 --> 0:35:02.640
<v Speaker 1>my episodes about the history of Panasonic because I mentioned

0:35:02.640 --> 0:35:06.040
<v Speaker 1>it there. I just find it interesting that the first

0:35:06.040 --> 0:35:11.520
<v Speaker 1>two companies that would sign on to to fabricate three

0:35:11.600 --> 0:35:14.879
<v Speaker 1>D O s also shared d n A in their

0:35:14.920 --> 0:35:18.640
<v Speaker 1>corporate history. Also, while this doesn't really play into our

0:35:18.719 --> 0:35:20.200
<v Speaker 1>three D O story, I thought I would just go

0:35:20.280 --> 0:35:23.239
<v Speaker 1>ahead and mention it. Those two companies would join up

0:35:23.239 --> 0:35:27.080
<v Speaker 1>in two thousand nine when Panasonic would acquire Sanio, which

0:35:27.120 --> 0:35:30.120
<v Speaker 1>is just evidence that we live in a really weird world.

0:35:30.880 --> 0:35:34.759
<v Speaker 1>And there was a third company that would manufacture three

0:35:34.840 --> 0:35:38.680
<v Speaker 1>D O consoles and this one was gold Star, a

0:35:38.800 --> 0:35:43.240
<v Speaker 1>South Korean company. Gold Star is still around today, except

0:35:43.280 --> 0:35:45.439
<v Speaker 1>it's by a totally different name, and it's a name

0:35:45.480 --> 0:35:50.040
<v Speaker 1>that you would recognize. That name is LG Electronics. It

0:35:50.520 --> 0:35:54.920
<v Speaker 1>changed its name in so the company is still around,

0:35:55.040 --> 0:35:58.840
<v Speaker 1>but under a different name. While Panasonic, Sanio and gold

0:35:58.880 --> 0:36:02.960
<v Speaker 1>Star would produced three D O consoles, there were a

0:36:03.000 --> 0:36:06.440
<v Speaker 1>few other companies that had agreed to license the design

0:36:06.520 --> 0:36:09.200
<v Speaker 1>and build their own three D O s, but those

0:36:09.200 --> 0:36:13.239
<v Speaker 1>consoles just never materialized in the marketplace. Uh. Game Pro

0:36:13.400 --> 0:36:16.560
<v Speaker 1>magazine was a great resource for this episode when I

0:36:16.600 --> 0:36:20.680
<v Speaker 1>was looking into this. According to one issue, Samsung was

0:36:20.719 --> 0:36:22.960
<v Speaker 1>one of the companies that signed on to produce three

0:36:23.000 --> 0:36:25.160
<v Speaker 1>D O s, although they didn't announce any sort of

0:36:25.239 --> 0:36:29.000
<v Speaker 1>timeline for production and ultimately it didn't go anywhere. Another

0:36:29.080 --> 0:36:33.839
<v Speaker 1>Game Pro issue revealed that the electronics company Toshiba had

0:36:33.880 --> 0:36:37.200
<v Speaker 1>secured a licensing deal they were going to actually manufacture

0:36:37.320 --> 0:36:41.320
<v Speaker 1>a handheld or portable three D O system that also

0:36:41.560 --> 0:36:45.720
<v Speaker 1>never went anywhere. And and yet another issue of Game

0:36:45.760 --> 0:36:49.160
<v Speaker 1>Pro but they were really big into covering the development

0:36:49.160 --> 0:36:50.920
<v Speaker 1>of three D O back in the day. But I

0:36:51.000 --> 0:36:54.160
<v Speaker 1>found that A T and T apparently showed off a

0:36:54.280 --> 0:36:58.040
<v Speaker 1>prototype three d O system of their own at the

0:36:58.120 --> 0:37:01.440
<v Speaker 1>Consumer Electronics Show. But uh, as far as I know,

0:37:02.200 --> 0:37:04.759
<v Speaker 1>nothing beyond the prototypes that A T and T made

0:37:05.120 --> 0:37:08.879
<v Speaker 1>ever got produced. I do wonder if there are any

0:37:08.960 --> 0:37:10.800
<v Speaker 1>of those A T and T three d O s

0:37:10.880 --> 0:37:15.680
<v Speaker 1>floating around out there anyway. Gold Star, Panasonic, and Sonio

0:37:15.719 --> 0:37:19.040
<v Speaker 1>would each release a few different versions of the three

0:37:19.160 --> 0:37:22.000
<v Speaker 1>d O s they produced. Some were never meant to

0:37:22.000 --> 0:37:25.160
<v Speaker 1>be consumer products. They were rather designed to help game

0:37:25.200 --> 0:37:28.560
<v Speaker 1>developers who needed, you know, actual hardware to test their

0:37:28.600 --> 0:37:33.600
<v Speaker 1>games on, essentially debug kits for their games. Others would

0:37:33.640 --> 0:37:37.120
<v Speaker 1>swap out basic parts on the systems. A lot of

0:37:37.160 --> 0:37:40.160
<v Speaker 1>the early three d O s had a motorized c

0:37:40.360 --> 0:37:44.080
<v Speaker 1>D tray, which is both expensive and it's a point

0:37:44.080 --> 0:37:46.160
<v Speaker 1>of failure. You know, eventually the motor is going to

0:37:46.200 --> 0:37:48.880
<v Speaker 1>give out and the tray is not going to extend

0:37:49.000 --> 0:37:51.799
<v Speaker 1>or go back in, and so some of them in

0:37:51.840 --> 0:37:55.279
<v Speaker 1>the subsequent models of the three D O replace that

0:37:55.320 --> 0:37:58.120
<v Speaker 1>with a top loading c D tray, so you just

0:37:58.520 --> 0:38:00.719
<v Speaker 1>flip open the top and put a c D in

0:38:00.760 --> 0:38:04.399
<v Speaker 1>that way, as opposed to ejecting a tray. Now, when

0:38:04.400 --> 0:38:07.360
<v Speaker 1>we come back, I'll run down what the basic spects

0:38:07.480 --> 0:38:10.560
<v Speaker 1>were for the three d O console, what set it

0:38:10.600 --> 0:38:13.880
<v Speaker 1>apart from other consoles of that era, and why the

0:38:13.920 --> 0:38:17.320
<v Speaker 1>console ultimately failed, as well as give a brief rundown

0:38:17.680 --> 0:38:20.520
<v Speaker 1>on what happened to the company three d O, which

0:38:20.560 --> 0:38:22.879
<v Speaker 1>again hung on for a few years after the death

0:38:22.920 --> 0:38:25.720
<v Speaker 1>of the console. We'll get to that after this quick

0:38:25.760 --> 0:38:37.960
<v Speaker 1>break So what makes a three d O a three

0:38:38.000 --> 0:38:41.759
<v Speaker 1>d O? Let's learn about the specs of the console. Now.

0:38:41.800 --> 0:38:45.120
<v Speaker 1>For the purposes of this breakdown, I'm really just gonna

0:38:45.160 --> 0:38:48.440
<v Speaker 1>focus on the first consumer model of the three d

0:38:48.520 --> 0:38:50.640
<v Speaker 1>O console to hit the market. That would be the

0:38:50.719 --> 0:38:55.359
<v Speaker 1>Panasonic three d O Interactive Multiplayer f Z one. This

0:38:55.440 --> 0:39:00.600
<v Speaker 1>is the system that first debuted. In the rains of

0:39:00.640 --> 0:39:04.239
<v Speaker 1>the machine was a thirty two bit CPU that was

0:39:04.320 --> 0:39:08.120
<v Speaker 1>a risk style processor r I s C that is

0:39:08.280 --> 0:39:12.080
<v Speaker 1>reduced instruction set computer. Now I talked about this with

0:39:12.160 --> 0:39:15.080
<v Speaker 1>the story of ARM, but basically, it means that the

0:39:15.120 --> 0:39:19.880
<v Speaker 1>instructions that this style of CPU handles are relatively simple,

0:39:20.080 --> 0:39:23.800
<v Speaker 1>and that means that each step, each instruction is easy

0:39:23.920 --> 0:39:27.520
<v Speaker 1>to carry out and therefore it goes pretty fast. More

0:39:27.560 --> 0:39:31.600
<v Speaker 1>complicated instructions might require lots more steps, and that slows

0:39:31.640 --> 0:39:35.640
<v Speaker 1>things down. The clock speed, or the number of pulses

0:39:35.719 --> 0:39:40.319
<v Speaker 1>the CPU has per second to carry out instructions, was

0:39:40.400 --> 0:39:43.680
<v Speaker 1>twelve point five mega hurts. That's twelve million, five hundred

0:39:43.680 --> 0:39:47.760
<v Speaker 1>thousand pulses per second. That sounds like it's really fast,

0:39:47.840 --> 0:39:51.000
<v Speaker 1>but by comparison these days, we talked about processors that

0:39:51.000 --> 0:39:53.400
<v Speaker 1>are in the giga hurts range with more than a

0:39:53.480 --> 0:39:56.840
<v Speaker 1>billion pulses per second, so we've come a long way.

0:39:57.239 --> 0:40:01.400
<v Speaker 1>Paired with the CPU were a couple of video coprocessors

0:40:01.480 --> 0:40:04.719
<v Speaker 1>meant to offload some of the heavy lifting when it

0:40:04.920 --> 0:40:07.880
<v Speaker 1>comes to graphics processing. In a way, it's similar to

0:40:07.920 --> 0:40:10.919
<v Speaker 1>what graphics cards would do for PCs in the late

0:40:11.000 --> 0:40:16.239
<v Speaker 1>nineteen nineties. By handing off tasks like texture mapping to coprocessors,

0:40:16.239 --> 0:40:20.080
<v Speaker 1>the CPU could focus on other tasks while running games

0:40:20.120 --> 0:40:22.560
<v Speaker 1>on the three D O. It also had a math

0:40:22.680 --> 0:40:26.520
<v Speaker 1>coprocessor in addition to those to also kind of spread

0:40:26.520 --> 0:40:30.160
<v Speaker 1>out the load. Now, this was in the dark times

0:40:30.239 --> 0:40:33.279
<v Speaker 1>before h D t V was even a thing, though

0:40:33.320 --> 0:40:35.759
<v Speaker 1>Hawkins has said on occasion that the three d O

0:40:35.840 --> 0:40:38.840
<v Speaker 1>could have been upgraded to h D t V. I

0:40:38.840 --> 0:40:41.680
<v Speaker 1>I don't know if that's true based on what I've seen. However,

0:40:42.239 --> 0:40:44.920
<v Speaker 1>as it was sold. The three d O would generate

0:40:44.960 --> 0:40:48.040
<v Speaker 1>images that would be shown at a resolution of sixty

0:40:48.080 --> 0:40:53.880
<v Speaker 1>pixels by FO pixels you know, essentially, you know, standard definition.

0:40:53.960 --> 0:40:58.400
<v Speaker 1>It was capable of replicating sixteen point seven million colors.

0:40:59.080 --> 0:41:01.520
<v Speaker 1>The three d os of or did Dolby surround sound.

0:41:01.680 --> 0:41:05.120
<v Speaker 1>It had two megabytes of d RAM, one megabyte of

0:41:05.239 --> 0:41:09.000
<v Speaker 1>v RAM, and of s RAM. But what the heck

0:41:09.040 --> 0:41:12.680
<v Speaker 1>does that mean? Well, d RAM stands for dynamic RAM,

0:41:12.719 --> 0:41:17.520
<v Speaker 1>which at the time was the standard RAM of machines.

0:41:17.640 --> 0:41:21.800
<v Speaker 1>It must be continually refreshed, or rather occasionally refreshed I

0:41:21.800 --> 0:41:25.520
<v Speaker 1>should say, not continually occasionally refreshed by the microprocessor or

0:41:25.520 --> 0:41:29.719
<v Speaker 1>else the memory deterior rates. V RAM is video RAM,

0:41:29.760 --> 0:41:32.640
<v Speaker 1>a type of RAM that the computer can actually read

0:41:32.680 --> 0:41:37.120
<v Speaker 1>and write to simultaneously, and it was particularly useful for

0:41:37.200 --> 0:41:41.680
<v Speaker 1>handling graphics. And s RAM stands for static RAM, which

0:41:41.840 --> 0:41:44.920
<v Speaker 1>was a much faster form of RAM than d RAM.

0:41:44.920 --> 0:41:47.040
<v Speaker 1>But if it's better, why don't just why don't you

0:41:47.080 --> 0:41:48.680
<v Speaker 1>just use s RAM? Man? Well, it's because it was

0:41:48.719 --> 0:41:51.279
<v Speaker 1>also way more expensive, so it would drive up the

0:41:51.320 --> 0:41:54.560
<v Speaker 1>cost of productions. That's why the three d O also

0:41:54.800 --> 0:41:58.080
<v Speaker 1>had some expansion ports and had a single control part,

0:41:58.160 --> 0:42:00.680
<v Speaker 1>but it allowed for daisy chain can actions of up

0:42:00.680 --> 0:42:04.240
<v Speaker 1>to eight peripherals, so you could have multiple controllers plugged

0:42:04.280 --> 0:42:06.600
<v Speaker 1>into it. But it had the one port that you

0:42:06.719 --> 0:42:11.160
<v Speaker 1>used to do that with. Uh now when the system

0:42:11.160 --> 0:42:13.160
<v Speaker 1>went on sale. Oh and it also had a CD

0:42:13.360 --> 0:42:15.480
<v Speaker 1>ROM drive. I mentioned that earlier, but you know I

0:42:15.480 --> 0:42:17.560
<v Speaker 1>should throw that in there too. When I went on sale.

0:42:17.560 --> 0:42:22.520
<v Speaker 1>It did so for six hundred nine nine dollars. That

0:42:23.840 --> 0:42:26.920
<v Speaker 1>is a lot of money. If we adjust for inflation

0:42:27.320 --> 0:42:30.520
<v Speaker 1>in today's US dollars, it would be equivalent to about

0:42:30.560 --> 0:42:34.480
<v Speaker 1>one thousand, two hundred sixty bucks or so. So imagine

0:42:34.640 --> 0:42:36.560
<v Speaker 1>that you go into a store and you see a

0:42:36.640 --> 0:42:40.120
<v Speaker 1>video game console and its ticket prices one thousand, two

0:42:40.200 --> 0:42:43.480
<v Speaker 1>hundred sixty dollars. This is not a fully fledged computer.

0:42:43.600 --> 0:42:45.759
<v Speaker 1>It's not like a gaming rig or anything. It is

0:42:45.800 --> 0:42:49.799
<v Speaker 1>a video game console akin to something like the PlayStation.

0:42:50.360 --> 0:42:54.279
<v Speaker 1>By comparison, the Sega Genesis, which was again already on

0:42:54.320 --> 0:42:56.680
<v Speaker 1>the market. It had been since the late eighties that

0:42:56.719 --> 0:43:00.560
<v Speaker 1>one cost a hundred eighty nine dollars winn't launch, and

0:43:00.600 --> 0:43:04.080
<v Speaker 1>the Super Nintendo Entertainment System, which was the reigning champ

0:43:04.239 --> 0:43:08.920
<v Speaker 1>at the time, had cost one when it launched, so

0:43:09.000 --> 0:43:11.960
<v Speaker 1>the three d O cost more than both of those combined.

0:43:12.239 --> 0:43:14.919
<v Speaker 1>It almost cost twice as much as both of those

0:43:14.960 --> 0:43:18.440
<v Speaker 1>put together. Now, granted, the three d O was a

0:43:18.520 --> 0:43:21.640
<v Speaker 1>thirty two bit system, whereas the S and E S

0:43:21.760 --> 0:43:26.320
<v Speaker 1>and the Sega Genesis the regular Sega Genesis were sixteen

0:43:26.400 --> 0:43:29.399
<v Speaker 1>met systems, So the three d O could run more

0:43:29.400 --> 0:43:34.280
<v Speaker 1>sophisticated games with better graphics. But at that steep price point,

0:43:34.640 --> 0:43:38.280
<v Speaker 1>would anyone actually buy one? And why was that price

0:43:38.360 --> 0:43:40.920
<v Speaker 1>so high? Well, it goes back to the three d

0:43:41.080 --> 0:43:44.840
<v Speaker 1>O business model. See Hawkins idea was to leave the

0:43:44.880 --> 0:43:48.080
<v Speaker 1>manufacturing to other people, and then to make money through

0:43:48.200 --> 0:43:52.800
<v Speaker 1>licensing the technology to those manufacturers and later to develop

0:43:52.920 --> 0:43:56.360
<v Speaker 1>games for the system itself and to collect on royalties

0:43:56.400 --> 0:43:59.759
<v Speaker 1>for all the consoles and games that were sold for

0:43:59.880 --> 0:44:02.920
<v Speaker 1>the manufacturers. That meant that the three d O was

0:44:03.000 --> 0:44:07.800
<v Speaker 1>inherently more expensive than if those companies had actually developed

0:44:07.800 --> 0:44:11.440
<v Speaker 1>their own hardware in house. Manufacturers, we're going to have

0:44:11.480 --> 0:44:14.160
<v Speaker 1>to pay three d O for every console they sold

0:44:14.160 --> 0:44:18.080
<v Speaker 1>to consumers. So to make up for that cost, that

0:44:18.200 --> 0:44:22.400
<v Speaker 1>loss and revenue, they increased the price of the consoles,

0:44:22.400 --> 0:44:24.680
<v Speaker 1>but that ended up pricing the systems well out of

0:44:24.680 --> 0:44:27.319
<v Speaker 1>the budgets of most video game fans who are out

0:44:27.320 --> 0:44:31.120
<v Speaker 1>there now. Typically, the way video game console manufacturers make

0:44:31.160 --> 0:44:36.440
<v Speaker 1>money is through software, not hardware. Most companies will actually

0:44:36.440 --> 0:44:40.440
<v Speaker 1>sell the hardware the consoles and a loss, so the

0:44:40.480 --> 0:44:43.560
<v Speaker 1>retail price will actually be below what it costs to

0:44:43.719 --> 0:44:47.359
<v Speaker 1>make and ship those consoles to consumers. Now why would

0:44:47.400 --> 0:44:50.759
<v Speaker 1>you do this, Well, it's because consoles are really no

0:44:50.800 --> 0:44:54.960
<v Speaker 1>good without content to play on those consoles, so the

0:44:55.000 --> 0:44:58.600
<v Speaker 1>manufacturers would use the consoles to secure customers for stuff

0:44:58.640 --> 0:45:03.000
<v Speaker 1>like video games and other content. Microsoft and Sony and

0:45:03.280 --> 0:45:07.239
<v Speaker 1>Nintendo can stand to lose money on console sales if

0:45:07.280 --> 0:45:10.000
<v Speaker 1>they can make it back by selling enough first party

0:45:10.040 --> 0:45:14.160
<v Speaker 1>games or making royalties off of games that are licensed

0:45:14.200 --> 0:45:18.000
<v Speaker 1>to run on those systems. But since these manufacturers, like

0:45:18.040 --> 0:45:22.400
<v Speaker 1>Panasonic didn't own the i P, they couldn't rely on

0:45:22.480 --> 0:45:25.359
<v Speaker 1>that same model. They weren't going to make royalties off

0:45:25.400 --> 0:45:28.719
<v Speaker 1>of game sales the way that three d O would. Heck,

0:45:28.760 --> 0:45:31.680
<v Speaker 1>if if Panasonic had made a game for the console

0:45:31.760 --> 0:45:34.200
<v Speaker 1>that they were manufacturing, they would have to pay a

0:45:34.280 --> 0:45:37.480
<v Speaker 1>royalty to three d OH. Now, sure it was a

0:45:37.520 --> 0:45:40.279
<v Speaker 1>lower royalty than what it would be if you were

0:45:40.320 --> 0:45:43.879
<v Speaker 1>to make a game for Saga or Nintendo. But since

0:45:43.920 --> 0:45:47.960
<v Speaker 1>Panasonic was actually fabricating the three d O, that's a

0:45:47.960 --> 0:45:51.960
<v Speaker 1>big difference, and so the company passed the costs onto

0:45:52.000 --> 0:45:55.880
<v Speaker 1>the consumer. Understandably, that meant that the sales of the

0:45:55.880 --> 0:46:00.000
<v Speaker 1>three d O were modest at best, while the Royal

0:46:00.080 --> 0:46:02.759
<v Speaker 1>lt fees meant that, you know, developers were interested in

0:46:02.840 --> 0:46:06.120
<v Speaker 1>making games for the console. The fact that the consoles

0:46:06.120 --> 0:46:10.600
<v Speaker 1>weren't really selling well was a huge problem. Developing a

0:46:10.680 --> 0:46:15.399
<v Speaker 1>game is a time consuming and expensive process, and if

0:46:15.400 --> 0:46:17.520
<v Speaker 1>you see that very few people have bought the console

0:46:17.560 --> 0:46:19.680
<v Speaker 1>in the first place, well there's not a lot of

0:46:19.719 --> 0:46:22.239
<v Speaker 1>incentive for you to make games for it. I mean,

0:46:22.280 --> 0:46:24.719
<v Speaker 1>if you do spend that time and money, there's a

0:46:24.719 --> 0:46:27.120
<v Speaker 1>really good chance you won't see a return on that investment.

0:46:27.120 --> 0:46:30.200
<v Speaker 1>There's literally not enough people with the console out there

0:46:30.640 --> 0:46:32.840
<v Speaker 1>to buy enough copies of your game for you to

0:46:32.880 --> 0:46:35.719
<v Speaker 1>make a profit. So the three d O had sort

0:46:35.760 --> 0:46:39.839
<v Speaker 1>of defeated itself. Now this wasn't because of the hardware, though,

0:46:39.880 --> 0:46:42.400
<v Speaker 1>to be fair, other systems that could go toe to

0:46:42.440 --> 0:46:44.640
<v Speaker 1>toe with the three d O were soon on the

0:46:44.680 --> 0:46:48.200
<v Speaker 1>market afterwards, like the Sony PlayStation, But the failure was

0:46:48.280 --> 0:46:51.719
<v Speaker 1>more in the business model. Hawkins, for his part, has

0:46:51.719 --> 0:46:54.840
<v Speaker 1>said that most retailers actually marked the price down to

0:46:54.920 --> 0:47:01.080
<v Speaker 1>five dollars, not six, because the ret oller said, we'll

0:47:01.200 --> 0:47:03.920
<v Speaker 1>never be able to sell these things if it's that expensive,

0:47:04.760 --> 0:47:08.160
<v Speaker 1>So I guess that's something. But even so, at five

0:47:08.320 --> 0:47:11.880
<v Speaker 1>nine it was far more expensive than the consoles that

0:47:12.120 --> 0:47:16.120
<v Speaker 1>competitors on the market had. Heck, when the Sony PlayStation

0:47:16.160 --> 0:47:20.480
<v Speaker 1>would debut in two years after the three d O

0:47:20.600 --> 0:47:23.520
<v Speaker 1>at first hit the market, Sony priced it at two

0:47:23.600 --> 0:47:26.920
<v Speaker 1>hundred nine dollars, and like the three d O, the

0:47:27.000 --> 0:47:30.799
<v Speaker 1>PlayStation had a thirty two bit processor and had comparative

0:47:30.800 --> 0:47:33.960
<v Speaker 1>amounts of RAM. The f Z one would be the

0:47:34.000 --> 0:47:36.600
<v Speaker 1>most expensive three d O console to hit the market,

0:47:36.640 --> 0:47:39.680
<v Speaker 1>that was the first one, but even the less expensive

0:47:39.680 --> 0:47:43.560
<v Speaker 1>ones were still more expensive than the competition. Gold Stars

0:47:43.640 --> 0:47:47.600
<v Speaker 1>three d O would debut at three dollars. Even the

0:47:47.640 --> 0:47:52.080
<v Speaker 1>expensive f Z one would drop to four dollars later,

0:47:52.640 --> 0:47:56.440
<v Speaker 1>but the damage had been done. Adding to the enormous

0:47:56.520 --> 0:47:59.880
<v Speaker 1>problem of a high price was the fact that developing

0:48:00.080 --> 0:48:02.960
<v Speaker 1>games for the system was a new process. It was

0:48:03.000 --> 0:48:05.400
<v Speaker 1>a brand new set of hardware, and that meant that

0:48:05.520 --> 0:48:08.920
<v Speaker 1>game development was gonna a little more slowly than what

0:48:09.080 --> 0:48:11.799
<v Speaker 1>the three d O team had hoped, and that meant

0:48:11.800 --> 0:48:15.240
<v Speaker 1>that some titles that had been intended to be launch titles,

0:48:15.239 --> 0:48:19.920
<v Speaker 1>like a Jurassic Park game, trailed behind by several months

0:48:20.239 --> 0:48:22.800
<v Speaker 1>as developers tried to work out bugs in their code.

0:48:23.080 --> 0:48:26.320
<v Speaker 1>In fact, the only title that was available at launch

0:48:26.560 --> 0:48:29.879
<v Speaker 1>was a game called Crash and Burn, a futuristic racing game.

0:48:30.560 --> 0:48:33.600
<v Speaker 1>The console would fare a little bit better in Japan,

0:48:34.160 --> 0:48:37.480
<v Speaker 1>where there were six whole launch titles to go along

0:48:37.480 --> 0:48:41.120
<v Speaker 1>with it when it went on sale in n but

0:48:41.200 --> 0:48:45.360
<v Speaker 1>after an initial interest in three d O, that interest

0:48:45.360 --> 0:48:48.440
<v Speaker 1>in Japan died down and sales died with it. And

0:48:48.560 --> 0:48:50.719
<v Speaker 1>one bitter part of the story is that e A,

0:48:51.040 --> 0:48:54.640
<v Speaker 1>the company that Trip Hawkins had founded back in two,

0:48:55.400 --> 0:48:59.279
<v Speaker 1>ultimately bailed on three d O to develop more software

0:48:59.280 --> 0:49:02.520
<v Speaker 1>for Sony play station. Hawkins found out his old company

0:49:02.560 --> 0:49:05.719
<v Speaker 1>would not be developing exclusive titles for the three d

0:49:05.800 --> 0:49:08.480
<v Speaker 1>O console, but they would be doing it for the

0:49:08.520 --> 0:49:12.440
<v Speaker 1>Sony PlayStation, and that had to be a knife in

0:49:12.480 --> 0:49:16.000
<v Speaker 1>the back to see the company he had founded undercut

0:49:16.600 --> 0:49:20.399
<v Speaker 1>the next company he had found it yikes, the three

0:49:20.480 --> 0:49:23.560
<v Speaker 1>d O company was looking at a new console design

0:49:23.680 --> 0:49:26.560
<v Speaker 1>to try and salvage things They code named it the

0:49:26.760 --> 0:49:29.120
<v Speaker 1>M two. This was going to be the successor to

0:49:29.239 --> 0:49:31.520
<v Speaker 1>the three d O and it was intended to be

0:49:31.560 --> 0:49:34.600
<v Speaker 1>backwards compatible with the three d O systems, so that,

0:49:34.719 --> 0:49:37.759
<v Speaker 1>you know, you wouldn't totally irritate all the three d

0:49:37.880 --> 0:49:40.760
<v Speaker 1>O fans out there. And the M two was needed

0:49:40.920 --> 0:49:43.640
<v Speaker 1>because other game consoles were hitting the market that could

0:49:43.640 --> 0:49:46.920
<v Speaker 1>compete on a technical level pretty effectively with the three

0:49:47.000 --> 0:49:50.960
<v Speaker 1>d O and they were much cheaper, and that, unfortunately,

0:49:51.040 --> 0:49:53.680
<v Speaker 1>was just never meant to be. The company stopped development

0:49:53.760 --> 0:49:56.759
<v Speaker 1>of the M two and sold it off to Panasonic.

0:49:56.880 --> 0:49:59.960
<v Speaker 1>It's probably a good thing because they avoided the sunken

0:50:00.160 --> 0:50:04.839
<v Speaker 1>cost fallacy. By the writing was on the wall and

0:50:04.880 --> 0:50:08.680
<v Speaker 1>the three d O system was discontinued. The three d

0:50:08.760 --> 0:50:12.360
<v Speaker 1>O Company switched gears and instead of designing hardware specs

0:50:12.440 --> 0:50:15.880
<v Speaker 1>and then licensing those out the fabricators, the company would

0:50:15.880 --> 0:50:21.200
<v Speaker 1>focus solely on developing software for other existing consoles like

0:50:21.239 --> 0:50:24.759
<v Speaker 1>the Sega Saturn and even the Sony PlayStation, as well

0:50:24.760 --> 0:50:29.520
<v Speaker 1>as for other computer platforms. The company restructured, layoffs followed.

0:50:29.680 --> 0:50:31.760
<v Speaker 1>I mean, there's no need for the hardware design teams

0:50:31.760 --> 0:50:35.000
<v Speaker 1>at that point, and by the company had sold off

0:50:35.000 --> 0:50:39.080
<v Speaker 1>its hardware business division to Samsung. Hugh Martin, who had

0:50:39.120 --> 0:50:42.400
<v Speaker 1>been president while Hawkins was serving as CEO and chairman,

0:50:42.760 --> 0:50:45.040
<v Speaker 1>left the company at that time, leaving Hawkins with the

0:50:45.120 --> 0:50:47.920
<v Speaker 1>full leadership of the three D O Company. The three

0:50:47.960 --> 0:50:50.480
<v Speaker 1>DO Company would go on to develop games like the

0:50:50.600 --> 0:50:54.319
<v Speaker 1>Army Men franchise, the Mind and Magic Series, and High

0:50:54.400 --> 0:50:57.560
<v Speaker 1>Heat Major League Baseball, which was possibly another nod to

0:50:57.600 --> 0:51:01.080
<v Speaker 1>hawkins love of sports. But while some those franchises would

0:51:01.160 --> 0:51:04.680
<v Speaker 1>do well, ultimately the company was unable to stay in business,

0:51:05.000 --> 0:51:08.399
<v Speaker 1>and in two thousand three, ten years after they had

0:51:08.440 --> 0:51:11.160
<v Speaker 1>founded the company, Three D O had to file for

0:51:11.280 --> 0:51:15.560
<v Speaker 1>Chapter eleven bankruptcy protection. Its assets were sold off, with

0:51:15.680 --> 0:51:19.880
<v Speaker 1>different franchises going to other game developers, and our story

0:51:20.000 --> 0:51:23.680
<v Speaker 1>comes to an end. Well. As for Trip Hawkins, he

0:51:23.760 --> 0:51:26.400
<v Speaker 1>ran to some other challenges. In two thousand eleven, the

0:51:26.520 --> 0:51:29.160
<v Speaker 1>i r S, that is, the Internal Revenue Service in

0:51:29.160 --> 0:51:31.239
<v Speaker 1>the United States, the agency kind of in charge of

0:51:31.320 --> 0:51:36.439
<v Speaker 1>overseeing federal taxes. They alleged that Hawkins owed around twenty

0:51:36.480 --> 0:51:41.040
<v Speaker 1>million dollars in back taxes and that number would steadily

0:51:41.120 --> 0:51:44.799
<v Speaker 1>go up. A judge said that Hawkins quote continued to

0:51:44.880 --> 0:51:49.480
<v Speaker 1>spend money extravagantly with knowledge of his liabilities. In the quote,

0:51:49.880 --> 0:51:53.800
<v Speaker 1>essentially he was saying that Hawkins was using a personal

0:51:53.840 --> 0:51:57.280
<v Speaker 1>bankruptcy to kind of shield his wealth and was still

0:51:57.320 --> 0:52:01.439
<v Speaker 1>spending money like crazy on a lavish lifestyle, or, as

0:52:01.480 --> 0:52:04.360
<v Speaker 1>an old timey type person might say, he was making

0:52:04.400 --> 0:52:08.040
<v Speaker 1>hay while the sun was Shannon. He was doing this

0:52:08.080 --> 0:52:11.400
<v Speaker 1>with the help of a little accounting company called KPMG.

0:52:12.120 --> 0:52:15.560
<v Speaker 1>By the way, this sort of financial gymnastics that Hawkins

0:52:15.600 --> 0:52:19.160
<v Speaker 1>was accused of performing are not that dissimilar from the

0:52:19.200 --> 0:52:23.000
<v Speaker 1>allegations leveled against a certain United States president. Right now,

0:52:23.960 --> 0:52:26.640
<v Speaker 1>Hawkins would go on to pay some of those back

0:52:26.680 --> 0:52:30.160
<v Speaker 1>taxes back, but he would be embroiled in various legal

0:52:30.200 --> 0:52:34.200
<v Speaker 1>proceedings regarding the bulk of those taxes. As for Electronic

0:52:34.320 --> 0:52:37.440
<v Speaker 1>Arts or e A, it is now the second largest

0:52:37.560 --> 0:52:41.040
<v Speaker 1>video game publisher in the world, right behind Activision Blizzard,

0:52:41.520 --> 0:52:45.520
<v Speaker 1>another behemoth in video game publishing, and as I mentioned earlier,

0:52:45.719 --> 0:52:49.480
<v Speaker 1>EA has built up a pretty spotty reputation over the years.

0:52:49.760 --> 0:52:54.120
<v Speaker 1>Oh and as for Apple, you know, the first employer

0:52:54.280 --> 0:52:56.879
<v Speaker 1>of Trip Hawkins after he got out of college. Well,

0:52:56.920 --> 0:52:59.960
<v Speaker 1>Apple is still doing pretty good these days. I hear

0:53:00.000 --> 0:53:03.920
<v Speaker 1>they actually have a new phone out so good on them.

0:53:03.960 --> 0:53:07.239
<v Speaker 1>And that wraps up the tragic tale of the three

0:53:07.280 --> 0:53:10.759
<v Speaker 1>d O and the three d O Company and the

0:53:10.800 --> 0:53:14.239
<v Speaker 1>misadventures of Trip Hawkins, which I think would make a

0:53:14.680 --> 0:53:18.240
<v Speaker 1>great title of a choose your own adventure novel. What's

0:53:18.280 --> 0:53:21.080
<v Speaker 1>next for Hawkins? I don't know. He founded another company

0:53:21.080 --> 0:53:23.759
<v Speaker 1>called Digital Chocolate, which well maybe I'll talk about in

0:53:23.840 --> 0:53:27.040
<v Speaker 1>another episode. Uh, and you know he's still active out there.

0:53:27.480 --> 0:53:30.080
<v Speaker 1>But yeah, this was one of those stories where like

0:53:30.160 --> 0:53:33.399
<v Speaker 1>he had some great ideas and he had a real

0:53:33.440 --> 0:53:38.200
<v Speaker 1>passion for games, something that I think is is really noteworthy. Um,

0:53:38.360 --> 0:53:41.640
<v Speaker 1>and he made some great moves, but not everybody you know,

0:53:41.760 --> 0:53:45.080
<v Speaker 1>bats a thousand. In fact, very few people do, and

0:53:45.160 --> 0:53:48.480
<v Speaker 1>this is a reminder of that. Anyway, that wraps up

0:53:48.480 --> 0:53:50.920
<v Speaker 1>this episode. If you have suggestions for future episodes of

0:53:50.920 --> 0:53:53.239
<v Speaker 1>tech Stuff, reach out to me. You can find me

0:53:53.280 --> 0:53:56.920
<v Speaker 1>on Twitter to handle his text Stuff hs W and

0:53:56.960 --> 0:54:05.000
<v Speaker 1>I'll talk to you again really soon. Yeah. Text Stuff

0:54:05.080 --> 0:54:08.239
<v Speaker 1>is an I Heart Radio production. For more podcasts from

0:54:08.239 --> 0:54:12.040
<v Speaker 1>I Heart Radio, visit the I Heart Radio app, Apple Podcasts,

0:54:12.120 --> 0:54:14.120
<v Speaker 1>or wherever you listen to your favorite shows.