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Mr SQL

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    Mr SQL reacted to Video 61 in How Alternative "Budget" Packaging Helped Keep Atari Developers In Business   
    hi and thanks @Sabertooth that's a great great question! you just opened a pandoras box and gave me inspiration for my next two Blog posts which will answer your question in detail, and also go in to jack tramiel's sale of Atari through JTS to hasbro and how that all tied back to the Jaguar sales numbers and to what degree the Jaguar was a success or a failure.
    and I should warn you: my answers to this question are seen as "controversial". you might not like my answers. you might debate and disagree with my answers. you might think I'm flat-out wrong. and that's okay if you do. all I can tell you is what Jack Tramiel told me and others at Atari, and what Atari was telling me directly. I have to go by my own first hand experiences with Atari and answer as best I can, and 
    your question is a really good one @Sabertooth and I will answer it in much more detail in my next Blog posts. for now let me answer them as directly and to the point as I can:
     
    I don't know the answer to this for sure. The faxes from Atari stopped coming in just prior to the release of Jaguar. By the time the Jag came along Atari wasn't as adamant about sharing some of this sales information, but I did get it from time to time. Atari had made $50 million in profit and it was mostly off games, they made almost no profit off hardware.
    I don’t know what the production/sales rule was for the Jaguar. They never told me about that. I’m pretty sure it was 100,000 units per game on the Atari Lynx, at least in 1989-1991. I remember some numbers like 45,000 units to 50,000 units on some Lynx games.
    But the Jaguar was a whole different story. They were very quiet about that machine. I mean VERY quiet. It was like pulling teeth getting information about it. And the reason why my own personal opinion was Jack Tramiel was getting ready to retire was that if the Jaguar didn’t go he was getting ready to pull the plug. He could’ve sold the company but if they looked into his past business practices they may have been very leery of buying the company, he may not have been able to sell it. We'll get into that theory later in another Blog.
     
    See @Sabertooth you're onto something. I don't think those sales numbers are accurate. That's not to say that you're wrong. I just don't think those sales numbers or that "150,000 Jaguars" sales figure that's been reported out there is accurate. At all. I think it's much higher than that worldwide, and I'll tell you why
     
    Yes. That's the number I have too, I think that number is probably right. 
    Let's look at this scenario in context. When I was receiving their sales history, a game like Crystal Castles on XE would be made 100,000 at a time and sell out. These XE games were made to work on all 64k Atari computer systems, and when combined with the XEGS itself was a huge user base. In the many many many millions of systems. So Atari would release 64k Crystal Castles for The Atari 8-bit family and they sold 99,993 units of XE Crystal Castles. They had 7 left.
    So think of that with Alien vs. Predator, 85,000 units were sold, but on an installed user base of 150,000 consoles worldwide? That doesn't add up to me. Let's do+the=math. To get that number on Crystal Castles you’d have to have big sales on a huge installed user base. None of that ever made sense to me because A.) Atari was consistently telling me there were 2 million Jaguar units but they did not tell me if that was the United States, or Europe or worldwide, and B.) because some of the Jaguar games sold really well, and that takes a large enough user base.
    That’s another thing that’s wrong but I can’t refute it because I was told personally that they moved 2 million units. There were 2 million Jaguars sold. Now, I said that about the Atari Lynx and I got shot down and called a liar. I believe there were actually somewhere around 10 million Lynx units sold world wide. There was even a programmer at Atari who did a Lynx game who said that’s not true. If you go on the Atari Lynx Wikipedia page it says that there were rumors that there’re 6-8 maybe 10 million units sold worldwide. That’s what I believe to be true, because I had insider information and that's what Atari was telling me personally.
    I truly believe there are more Atari Jaguar units worldwide than officially documented. Certainly more than that 150,000. 
    You see Jack would run these machines through other countries so he didn’t have to pay taxes on them. And he would say "yeah we sold 1 million units in the US" and that’s what Atari would report to the IRS and that's all they paid taxes on. Privately Atari would tell us there were more units offshore. That's how there are all these XE machines down in Mexico that are being sold on eBay and re-imported to the US.
    This stuff got shipped off shore pronto and then sold in other countries and that’s how Jack Tramiel evaded taxes, allegedly. That’s not what they told me, Atari told me flat out there were 2 million Jaguar systems. If you think about it 85,000 AVP that’s a lot of one title for such a small user base. Doesn’t that seem awfully odd to you?
     
    @Justin now we're getting into it arent we? They only sold worldwide 900 Fight for Lifes. The company that did Ultra Vortek was in Salt Lake City. They told me they did fairly well with that game so the sales numbers were actually pretty good! It was Fight for Life was what triggered things. After Ted Hoff was fired by Jack Tramiel Atari went 5 whole months without releasing a Jaguar game. Ted Hoff came to work in January of that year and he was locked out of the building.  A lot of us who were still in the Atari business were so dismayed by this. Because there were a lot of games still in the hopper! 
    What Ted Hoff did was reorganize the company and he paid off all the back bills, and Ted had gotten Atari quite profitable because he was keeping things on pace with a release schedule. That gave retailers confidence in the life of the system and in Atari's consistency and business practices, it helped their reputation. Ted Hoff had gotten Atari onto a regular release basis as far as games are concerned, you could see what was coming out. Jaguar was selling in Walmart at this point. They were getting 1-2 games a month on the Jaguar which was phenomenal compared to Jack Tramiel. Some of them were done real well. And even though they didn’t sell like AVP they did sell, and many of them did sell good enough. Ted Hoff had resurrected The Atari Lynx too. The Lynx games started selling again because Lynx had a huge installed user base and it never should’ve been done away with.
    Well once Ted Hoff was fired and kicked to the curb, I called up Atari right way because I had a feeling of what was going on, and I said are you going stick to your release schedule because it was working. I warned Atari that if they abandoned their release schedule and abandoned their dealers, the dealers would abandon Atari. This is what had happened after the crash. “Well were’ looking things over and deciding what we’re going to do” and I warned them that if they didn’t keep to the schedule they were going to loose whatever ted Hoff had built up, and I knew it was good because Atari had $50 million in the bank and there was a lot of profit.
    5 months go by and no new releases from Atari. So they brought out Fight for Life and released it after 5 months had gone by without a peep from Atari to their dealers. Atari called me a few days later and they were just steaming about it and they said you were right. I got a phone call from Atari one day and they said "Lance you were absolutely right that we should have stuck to the release schedule or people would abandon us." And I said that was their past record, that Atari didn't talk to people, they didn't communicate with their dealers or with distributors or buyers for retail stores like Toys R Us, KB or Babbages, nobody had any idea what was going on, they don’t care about support, and when Atari brings stuff out a lot of times it doesn’t sell because they don’t support it.
    They only sold worldwide 900 Fight for Lifes. And my order was for 55 of them. Atari said I placed the largest order in the world for fight for life. Right after that they merged with JTS that hard drive maker in India. And that’s all she wrote.
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