suspicious_milk, on Mon May 7, 2012 8:20 PM, said:
I would've went full-on 3DO.
For those who don't know (all two of you probably) 3DO Licensed out EVERYTHING (system production etc) to anyone who would sign on. Having the "Atari 3DO" competing with the Panasonic FZ-1 would've been a no brainer for a lot of people.
The issue with that, unfortunately, was that the 3DO business model meant that, at least in the early going (until Trip and company saw the error of their ways), the hardware manufacturers themselves didn't get a cut of software revenue
at all. That's why the 3DO was so expensive at launch - Matsushita (parent company of Panasonic) was trying to make as much profit off of the hardware sales as possible. When LG/Goldstar released their 3DO unit, they came in at $499 because their strategy was to undercut Panasonic's price point, and, while taking less profit per unit sold, hopefully make up for it by selling more units than Panasonic.
It wasn't until Trip and company figured out where they went wrong and enticed Matsushita and LG to drop price by cutting them into software revenues that the price dropped on both units to more market friendly standards (iirc, they both dropped down to $399 by holiday season '94, then $299 in response to the Saturn surprise launch, and then $199 by that holiday season after the PS1 had launched). But, of course, he wound up irking developers by A. increasing their royalty payments by 2x, from $3 to $6 (because Trip sure as heck wasn't gonna take that money out of his pocket to pay the 3DO manufacturers when he could rob Peter to pay Paul), and B. decide to start 3DO on the path of developing games of their own when they had promised 3rd parties that they
wouldn't do that.
So, in that context, I don't think Atari could've changed anything much by going with 3DO (as far as changing the 3DO model). They would've still needed to make money off of hardware, and that would've meant launching at a high price point. And LG/Goldstar, Matsushita/Panasonic, Sanyo and the rest were MUCH larger and wealthier companies than Atari.
Also, on a slightly humorous note, I'm sure Atari releasing what was, in effect, a sort of off-spring of the Amiga (RJ Mical had something to do with both Amiga and 3DO, and 3DO's OS was said to be very AmigaOS-like) would've been a sign of the End Times.
Quote
It certainly would've been cheaper on me, I bought both

Oh, I did too. But later. 3DO was a gift from my older brother, a used console bought shortly before 3DO called it quits. Jag was bought years later, shortly before I came to join this forum, actually.
Looking back, and with today's eyes, of the two, 3DO was, all around, the better product (maybe not in theoretical "power", but relative "power" and ease of development) but was stymied by that poorly thought out business model. Had the 3DO Company simply sold the technology, and their technical know-how, to Panasonic (as they later did with the M2 tech when they sold the tech and parts of their engineering company to Panasonic), Panasonic would've gone with the razor blade model and it likely would've been the market leader, taking the position that Sony had but doing so a couple of years earlier.