WINDOWS 95 MAY TAKE TIME TO OPEN

DAN ALAIMO

Windows 95 has been hyped as a cure-all for the problems facing the compact disc read-only memory market, but its effect will not be felt for a long time, agreed retailers and other observers polled by SN. "As with any new software item, you are going to have a lot of bugs in the system," said Carl Johnson, video specialist at Harp's Food Stores, Springdale, Ark. Johnson sees little effect on CD-ROMs, at least in his market area. "You might see an impact on the coasts, but in the Midwest it is going to take a while for people to get ready for it," he said. Windows 95, from Microsoft, Redmond, Wash., is a new operating system for personal computers that updates Windows Version 3.1. Released Aug. 24, it makes CD-ROMs easier to use because of a "Plug and Play" feature. Prior to its release, Windows 95 was expected to give a big boost to the CD-ROM market. But now the consensus is that this will take a long time to happen, at least until later in 1996. It will probably be longer before it becomes a significant factor in supermarket video departments, said industry observers. How quickly Windows 95 is accepted, and how quickly it affects the CD-ROM market, depends on the number of bugs in the new program, on the number of other software programs available to take advantage of it and on consumers' willingness to upgrade their existing computer systems, said the observers.

Windows 95 needs eight to 16 megabytes of main memory to operate and 35 to 65 megabytes of hard drive space. New computers sold this year will come equipped to run Windows 95 and will include the program. Most also will include CD-ROM drives. "If you listen to Microsoft, Windows 95 is going to be the biggest thing since sliced bread," said Bill Glaseman, video specialist at Bashas' Markets, Chandler, Ariz. "It is something that is apparently going to be accepted by a lot of people. But the route it takes is going to develop as time goes on." While game developers will probably find ways to take advantage of Windows 95's capabilities, that will take a while, he said. Glaseman said he recently saw a demonstration of Windows 95 and it still had bugs to be worked out. "They are talking about an update to Windows 95 to come out shortly after this release. But that's something we may always have to live with," he said. "Windows 95 is heading us in the right direction of an installed base where everything is plug and play," said Gregg Wright, president of Video III, Orem, Utah, a company that racks over 100 supermarket video rental departments for Safeway, Lucky, Smitty's and Buttrey. But it will take a long time before there are enough other software programs designed to run on the new system, he said. "Only the newer product is going to be set up for Windows 95," he said. According to some press reports, Windows 95 will run older Windows and DOS programs but not as quickly as the newer systems.

Community Cash Stores, Spartanburg, S.C., had tested CD-ROM rentals, "but we got out of it because there was just not enough interest in them. People were buying more CD-ROMs than renting them," said Jim Key, nonfood direct store buyer.

The new system might help to spur interest in computers and in CD-ROMs and thereby add to the total installed base of hardware, he said. "Those types of computers and systems have to penetrate the market a little bit more before we will have a lot of luck with renting CD-ROM," he said. "Windows 95 is going to ignite the home computer market," said Jeff Allen, director of marketing at Entertainment Technologies of Colorado, Englewood, Colo. "We are already in a boom period. This boom is going to look like nothing compared to what is going to happen with computer hardware sales this fourth quarter," he said. Because of this, CD-ROM will be a significant market by the first quarter of 1996, he said. "The number of home computers they are planning to sell between now and then is unbelievable," said Allen. The "Plug and Play" feature of Windows 95 enables computers to automatically configure components like CD-ROM, but the computer and the components have to be labeled "Plug and Play," he said. There still is a lot of complexity for the typical consumer and a lot of bugs to work out of the system, said Ted Lannan, president of Fairfield Research, Lincoln, Neb., a market research company that tracks the video game industry. "You can have a heck of a time trying to run software on all the different multimedia systems. Windows 95 is supposed to help with that because it is an operating system, but we will see. I tend to be skeptical with new software that is as radical as that. But eventually I'm sure it will be just perfect," he said. Although Windows 95 is getting a lot of publicity, "there are still going to be people buying games and dedicated game systems," said Lannan.