The SCND Genesis: Legends RMX Mac OS

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The Digital Hub strategy


'Youknow, I've got a plan that could rescue Apple. I can't say any more than thatit's the perfect product and the perfect strategy for Apple. But nobody therewill listen to me.'

--Fortune

Like Kega Fusions’s stand-alone emulator, the Genesis X Plus is capable of emulating a wide variety of Sega consoles, including Genesis, Mega Drive, Sega/Mega CD, Master System, Game Gear & SG-1000. After upgrading to Big Sur the finder displays additional folders in my /Documents folder, which seems to be copies or links to folders of applications in /Library/Containers. The folders are only shown in the finder, not in the terminal. The can not be deleted or moved. Does anybody know.

Apple’s so-called Digital Hubstrategy also emerged in 2000, although it

was only disclosed a year laterat Macworld San Francisco 2001 (see it in the

Movie Theater).

The Digital Hub strategy was atake on the future of personal computing

that went against a common beliefthat had developed toward the end of

the 1990s. Many analysts were soenthusiastic about the success of the

Internet that they were convincedthe personal computer was soon to

disappear. It would evolve into amere terminal whose only purpose would

be to access all kinds of contenton the Web. The consensus was that the

current state of the PC was a dull,boring box, and that any innovation had

stopped in the industry.

Steve Jobs and Apple thought dierently. They were among the very few

that professed quite theopposite: the PC had a very exciting future. As they

put it, it had evolved throughoutthe years from the age of productivity, in

the 1980s, where people used itfor spreadsheets and databases; to the age

of networking, in the 1990s,where it connected to the Internet; and it was

now, in the early 2000s, enteringits third age: that of the digital lifestyle.

Consumers were increasinglystarting to use all kinds of digital devices:

digital cameras, camcorders,music players, PDAs... But these devices didn’t

all about Steve Jobs.com

.make sense without a computer.The personal computer was going to

become the center or digital hubof this new digital lifestyle, making all its

pieces — music, photos, movies,contacts, data — come together.

It’s worth stopping and lookingback at this for a minute. See, it’s such

decisions that have made SteveJobs worthy of his reputation of hi-tech

visionary. He certainly isn’talways right: he never believed in Pixar’s success

in making animated movies, forexample, until the very last months before

Toy Story was released. Hethought NeXT would become a new standard in

personal computing, and Pixar’sRenderMan would allow mere mortals to

draw 3D objects just as easily asthey laid out and printed newsletters. He

also released computers thatflopped badly, from the NeXT Cube to the G4

Cube, released in July 2000 anddiscontinued just one year later. But he

really did see the future atseveral points in his career: first, of course, with

the personal computer, which ledhim to start Apple. Then with graphical

user interfaces, and later withdesktop publishing, on the original

Macintosh. We can now say withoutdoubt that the digital hub strategy was

another one of those greatvisions, one that has turned Apple from a niche

computer company to thecomputer/music/consumer electronics

powerhouse it is today.

Looking back at this success,Steve summed it all up in this particularly

telling phrase:

The great thing is that Apple'sDNA hasn't changed. The place where Apple

has been standing for the lasttwo decades is exactly where computer

technology and the consumerelectronics markets are converging. So it's

not like we're having to crossthe river to go somewhere else; the other side

of the river is coming to us.

Steve Jobs in How Big Can AppleGet?, Fortune, February 2005

Indeed, if you look back at whathad always inspired Steve Jobs, it was

simplicity, ease of use, usingcomputers to do creative work, and making

your life easier. He alwayslooked up to Sony, to which he was thankful for

creating the consumer electronicsbusiness... in a way, he always dreamed

of what Apple is doing today, andprepared the company for it, even

unconsciously.

It started with iMovie, a digitalmovie editing application that Apple

introduced in 1999. As opposed tothe digital hub strategy, one can think of

iMovie as one of Steve’serroneous visions. He thought that “desktop

movies”, i.e. the ability toshoot movies with digital camcorders and edit

them on your computer, was goingto be the next big thing in personal

computing, yet another “nextdesktop publishing revolution.” It was one of

his main points when heintroduced the iMac DVs in late 1999.

But quickly enough, he realizedhe was wrong. Users didn’t embrace

desktop movies as fast as hehoped, and certainly PC users didn’t switch to

the Mac to use iMovie. However,they did go online to download music

all about Steve Jobs.com

.over Napster, as digital piracyreally started to emerge by the turn of the

century.

It was the starting point of thedigital hub strategy. Apple’s software

developers began work on a coupleof new digital lifestyle applications,

namely iDVD, to burn your movieson DVDs, and especially iTunes, the

digital music jukebox. iTunes wasactually written in less than five months,

which exemplifies the panic ofSteve when he realized Apple was late

catching up with the digitalmusic revolution. The company actually didn’t

start from scratch, as theybrought in an outside developer who was

working on a similar piece ofsoftware to save some time.

However, Cupertino didn’t alwaysplan to develop all its digital lifestyle

applications in-house. After all,they had enough work on their hands with

bringing their new operatingsystem to market. That’s why they went to

one of their main softwarepartners, Adobe, maker of Photoshop, and asked

them to develop a consumerversion of their photo editing software for the

Mac. To their surprise, Adoberefused, as the company didn’t believe in the

digital hub strategy and wasalready having a hard time porting their

existing apps to the new OS Xplatform. That’s why Apple started releasing

the so-called iApps one after theother.

The iApps were a digital suite ofapplications that eventually evolved into

iLife, which Apple branded as“Microsoft Oce forthe rest of your life.” They

all had the same purpose ofmaking our emerging digital lives easier. In

addition to iMovie, iDVD andiTunes, iPhoto was released in 2002, followed

by iCal later that year,GarageBand (for recording and editing music) in

2004, and iWeb (for makingwebsites) in 2006. The reason Apple was able to

develop such breakthroughsoftware so rapidly was mainly Mac OS X, with

its object-oriented environmentinherited from NeXTSTEP.

Although the iApps were reallythe foundation for Apple’s future lead in the

consumer electronics business,that’s not what they were envisioned for.

They were intended as killerapps, i.e. apps that would compel consumers

to buy a Mac just so that theycould use them. More precisely, they were

The SCND Genesis: Legends RMX Mac OS

supposed to entice Windows usersto switch to the Mac, as there was no

similar complete digital-lifesolution on their platform.

“5 down, 95 to go”

The digital hub strategy itselfwas just one part of Steve’s greater plan to

finally gain market share in thePC market. Since he had returned to Apple,

the Cupertino company was stuckat around 5% of the overall PC market,

even though most industryanalysts acknowledged the superiority of its

operating system, and theinnovations in its hardware.

One other plan was an aggressiveTV campaign called “Switchers”. Its ads

showed several former PC userswho had switched to the Mac and were

describing how it had made theirlife so much easier. The purpose of the

campaign was to encourage peoplewho were thinking of switching but

were a little afraid to do so, byshowing them someone who had made the

change and was happy with it.

Yet the riskiest strategic moveApple did to seduce Windows users was to

get into the retailing business.

It was far from an obviouschoice. Once again, there was a consensus in the

industry that brick-and-mortarcomputer retailing had had its day. The new

model was Dell, which onlyshipped computers directly to customers after

they were purchased on itswebsite. The one company that had their own

computer boutiques, Gateway, wasactually closing them because they

were huge money sinks.

But Steve’s vision was dierent. He understood that Windows users

wouldn’t even consider Appleunless they would actually see how Macs

worked and could help them runtheir digital lives eortlessly.He

envisioned “lifestyle stores”that would showcase Apple’s products working

with digital devices, that peoplecould pick up and test drive on the spot.

The stores would be in veryexpensive locations, in popular malls or in the

center of shopping districts.

To help get into retailing, Stevehad former Gap executive Mickey Drexler

join the Apple board as early as1999, then hired Ron Johnson away from

Target in late 2000. After monthsof experimentation, Apple inaugurated

their first Retail Store in May2001, in the midst of the industry’s postInternet bubble crisis. Almost everyexpert agreed they would turn out an

expensive mistake...

Steve Jobs behind the Genius Barat New York’s SoHo Apple Retail Store in 2002.

Notice the huge black and whitephotographs, so typical of him.The iPod revolution

1,000 songs in your pocket

Although Mac OS X, the digitalhub strategy, the breakthrough hardware

and the retail stores all playeda role in Apple’s renaissance, they were not

the essential key that made itall come together. As you probably know,

that key was a little shiny whitedevice the size of a pack of cigarettes called

the iPod.

The iPod was of course anintegral part of Apple’s vision of the digital

lifestyle. When they looked atthe big picture, they realized that, unlike the

digital camera and camcordermarkets, the digital music player market did

not yet oer compelling products to work with your Mac.That’s how the

idea of making such a devicein-house arose, in early 2001, after iTunes was

introduced and the companystarted focusing on the digital music

revolution.

Just like iTunes, Steve Jobswanted to get a product out to market quickly,

to catch up with the rest of theindustry. That’s why he turned to an outside

engineer, PortalPlayer founderTony Fadell, who had notoriously tried to sell

his prototype of a little MP3player to several consumer electronics

company. Fadell joined Apple inFebruary 2001, and the iPod shipped only

nine months later, in lateOctober 2001, just in time for the holiday season.

The original iPod distinguisheditself from its competition for several

The Second Genesis: Legends Rmx Mac Os Iso

reasons. Apart from its gorgeouslook, its click wheel and user interface

made browsing through one’s musiccollection very easy and fast; it had a

hard drive which could store upto 5GB, or “a thousand songs in your pocket”,

which was Apple’s tag-line forthe new product; it connected to your Mac

via FireWire, which was 30 timesfaster than your typical USB MP3 player;

and it synced with iTunesseamlessly: you just had to plug it in, and the

software took care of the rest.

There was simply no other MP3player that matched any one of those

breakthrough features. iPodquickly became a very, very hot product for

music lovers... and digitalpirates. It was quickly acknowledged as “the

Walkman of the digital age”, aseven Windows users either hacked it or

moved to the Mac just so thatthey could use it.

Apple was confused about how toreact to this unexpected success. They

could decide to continue limitingiPod to Macs, so that it would entice PC

users to switch; or they couldmake it Windows-compatible, which would

broaden their target and showusers unfamiliar with Apple how good their

products could get. At MacworldNew York in July 2002, Steve announced

they had opted for the secondsolution.

The iTunes Music Store

Once Apple had step foot in themusic business with iPod, they started

looking at content. At the time,most people either ripped their CDs on

their Macs or downloaded musicillegally on peer-to-peer networks.

Recognizing they were in a uniqueposition to do so, Apple decided to try

and come up with a legal solutionby building an online music store. They

The Scnd Genesis: Legends Rmx Mac Os Update

had enough experience to do sothanks to their own popular online store

on apple.com, as well as theirQuickTime movie trailers, which had taught

them how to handle massivedownloads on their servers.

Moreover, they were able tonegotiate with the music companies because

they were still a niche player.The majors were trying hard to fight Napster,

but they were reluctant to launchonline stores, afraid that it would destroy

their current business model. ButiTunes could only run on Macs, which

were still a fraction of the PCmarket — so they viewed Apple’s proposal as

an opportunity to try a new modelwith limited risks.

Steve Jobs used his negotiationskills to have the labels agree on a unique

price: $0.99 for each track, and$9.99 for whole albums. Although Apple

would not get much from theiTunes Store, they expected it to drive iPod

sales, as purchased music couldonly be played on their player.

So, on April 28 2003, Steveunveiled the iTunes Music Store at a special

Music event. The results quicklyexceeded the company’s best hopes. Five

million songs were sold in justeight weeks, and another eight million in the

following fifteen weeks, bringingiTunes’ share of legal music downloads to

70% — yet it was still onlyMac-compatible!

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