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 functions, in many instances will evolve to encompass nonentertainment functions. By incorporation of a keyboard plus logic, memory and I/O circuits, a home computer can be incorporated in the same basic unit. Cable television networks will extend two-way communication capability to this basic unit, although growth in communication applications will only be approaching its takeoff point by 1980. The traditional television receiver producers such as Admiral/Rockwell, RCA, Zenith, Magnavox/NAP and Quasar will monopolize the stand alone market, often drawing on LSI capabilities elsewhere within their own corporation.

The total US absorption of electronic games in 1976 was $261 million, as noted in Table 1. This includes the US domestic production, less US exports, plus US imports. Over two thirds of these imports, in 1976, were from the offshore assembly operations of US companies. Not all of these shipments, however, found their way into the hands of consumers or commercial game operators. A substantial share, $44 million or 17 percent, consisted of buildup in the pipeline inventory on retailer shelves, in warehouses and other inventory. The net end market, therefore, was $217 million in 1976. Pipeline buildup will peak in 1978, and decline gradually thereafter. The end market in 1980, therefore, will be $584 million, slightly in excess of total shipments at the wholesale level.