Game start-up faces major rivals with Linux console

Linux, a clone of Unix that began as a programming hobby, has carved a majorniche for itself in the mainstream computing world, withfast growth in the server marketandblossoming interest forgadgets. But going up against Sony, Sega, Microsoft and Nintendo in thevideo game market will be difficult, saidYankee Group analyst Mike Goodman.

"This is a classic David vs. Goliath, only there are four Goliaths," Goodmansaid.

Though this will be the first game-specific Linux machine, companies such asLoki Entertainment Software see amarkettranslating existing gamesto Linux.

But the competition won't be easy. Sony's PlayStation2 has been released inJapan and will arrive in the United States on Oct. 26, Goodman said. Morethan 2 million Sega Dreamcast units have been sold in the United States.

The next-generation Nintendo "Dolphin" machine was due this fall but hasbeen delayed, probably until the first half of 2001, Goodman added. AndMicrosoft'sXbox, though a newcompetitor, is backed by the software giant's financial and marketing clout.

Indrema ultimately hopes to take on these competitors, but that's not partof the early strategy, Gildred said. "Initially, we're not really goinghead-to-head with the Nintendos and Sonys," he said. "We're positioning forhigh-end Linux gamers (who want) cutting-edge performance and flexibility intheir systems."

The company willstart with underground marketing tactics to spreadenthusiasm among Linux faithful. Beginning in the spring, the company willseed the market with new systems. Only when word has spread will morewidespread efforts to gain recognition begin. "Our mass-market push nextyear will occur when we feel the mass market has been educated by the alphadevelopers, the early adopters," Gildred said.

The stronger marketing push will take place in time for the 2001 holidayseason, Gildred said, the key sales window for the video game market.

But the company's success ultimately will rest on whether it can convincedevelopers to write games. Here, too, the company is leaning on philosophyfrom the open-source community that collectively developed Linux, often withno profit motive whatsoever.

Unlike current game consoles, developers will be able to offer programsnearly for free, paying only a fee to have programs certified, Gildred said.People seeking a name for themselves will be able to get to market quickly.

"We're changing the rules of video game development," he said. "It's goingto make games prevalent on our platform, and you're going to see free gameson our system."

Indrema will charge per-unit royalties only for games that are being sold.It won't levy a fee for games that are offered for free, he said.

But Goodman was cautious whether the model will work. "Free games aregreat," he said. "They need to be successful enough that they can seed themarket, but you can't be too successful, because if you are, nobody willwant to pay for games."

Indrema is talking to established game authors and has signed deals withsome, though Gildred wouldn't say which partners are on board. About 30titles are expected to be available at launch, he said.

The company selected Linux because it needed an open-source heart, and Linux"performs very, very well," he said. The company will release its modifiedversion of Linux, a distribution called DV Linux. Though Linux can beobtained for free, the company selected it for performance, not cost,Gildred said.

Gildred declined to release many details of the Indrema hardware, other thansaying it would use an Nvidia graphics chip, an Intel or Intel-compatibleprocessor and a custom graphics system with "a lot of high-speed interfacesbetween a lot of the graphics systems."

Indrema will sell some boxes under its own name but also is licensing thedesign to others, Gildred said.