Wall Street Predicts Major New Atari Products

Breakthrouth information about upcoming Atari products was unveiled in a "bullish" stock analysis report by Lee Isgur, first vice president of the Paine Webber brokerage, advisor to the Publishing board of directors and author of Isgur Portfolio ST software.

Atari will introduce a 68030-based computer this fall, according to Isgur, as well as a laptop ST with a built-in hard disk.

In January 1989, Atari will introduce "what will probably the first 68000-based game machine." It should retail at around $199. Atari will also double the $10 million it spent on video games last year.

Because of the DRAM chip shortage, Atari is currently producing a few thousand PC clones a month, but later this year the company will begin making the PC-5, an,80286 AT-compatible computer.

Atari sent 250 transputers to software developers and the high-powered processing units should be on sale before the end of the year.

Atari's computer division reported a 61% revenue increase.

Isgur's report estimates that over 80% of Atari's computer sales--around $400 million to $500 millon this year--are outside the United States. Management hopes for 50% of computer sales to come from the United States in 1990. Isgur calls this an "overly ambitious goal" but thinks it could happen in 1991.

The report also predicts the likelihood of Atari Opening a factory in the United States to manufacture computers for both home and abroad before the end of the year. (PossibLe sites mentioned include Nevada and Houston.) Atari is also considering opening a semiconductor plant in Germany that would initially produce 1Mb and 4Mb chips.