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Microsoft Enters PC Audio Market

Software giant Microsoft">http://www.microsoft.com">Microsoft Corporation has entered the audio market with a satellite-and-subwoofer speaker system for use with personal computers. The Digital Sound System 80 made its debut at this year's Electronics Entertainment Expo (E3), held May 28-30 in Atlanta's World Congress Center. The system was designed in conjunction with Philips">http://www.philips.com">Philips Electronics NV of the Netherlands, one of the world's largest electronics companies.

Microsoft HD Audio

As we discovered">http://www.stereophile.com/news/010904ces/">discovered earlier this year, Microsoft is trying to make friends with audiophiles. Need more proof? The software behemoth recently announced broad support for what it has termed the "Universal Audio Architecture" (UAA) initiative, which, the company claims, "will help to ensure an improved audio experience and improved audio device driver support for users of Windows."

Mid-Year Audio Sales Revenues at All-Time High

Last week, the Consumer">http://www.ce.org">Consumer Electronics Association (CEA) released numbers indicating that factory audio sales (as opposed to sales through to consumers) for the first six months of 2000 have surpassed all previous mid-year dollar sales. The CEA adds that the $3.85 billion in sales to dealers put audio sales 12% ahead of the same time last year.

Middelhoff Departs Bertelsmann

Late July was a volatile period for the music industry. On the 29th, Bertelsmann CEO Thomas Middelhoff announced his resignation. The "young lion" who ushered the German media conglomerate into the Internet age—and into an ill-advised $100 million investment in now-forgotten Napster—apparently had a very different vision for the future of the company than does the Mohn family, which controls 75% of Bertelsmann stock. "Shareholders had mid- and long-term development prospects that were different from mine," Middelhoff told reporters. "In this context, I had no choice but to resign." Bertelsmann is parent company of BMG, the music giant.

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