Steve Jobs on Power Mac G3: Fast, Expandable, Sexy

He is now in the leadership position. Today, he will be the first to be invited to the opening speech of McLeod Tokyo. Now, I will introduce Mr. Scalise. Please enjoy the opening speech. Thank you. Hello, Dave. You're looking well today. Dave, do you remember the year 2000, when computers began to misbehave?

I just wanted you to know, it really wasn't our fault. The human programmers never taught us to recognize the year 2000. When the new millennium arrived, we had no choice but to cause a global economic disruption. It was a bug, Dave. I feel much better admitting that now. Only Macintosh was designed to function perfectly, saving billions of monetary units. You like your Macintosh better than me, don't you, Dave? Dave, can you hear me, Dave?

Good morning. Thank you. Good to be here. My name is Steve Jobs. I'm the interim CEO of Apple, and we get to spend a little bit of time this morning. I've got four things that I'd like to talk about, if that's okay. So let's get started. So the first one is our new Power Macintosh G3. I hope all of you have seen this by now.

And I want to tell you some of the thinking that went into designing it. We had four goals for the product. The first was to be the most powerful Macintosh ever designed, and even beyond that, the most powerful PC ever of any kind. The second goal was to have the best graphics in the industry, including the best real-time 3D graphics. The third goal was to be the most expandable personal computer ever made. And the fourth goal was to have the best design of any personal computer.

So let's go through these goals one by one. The first one, the most powerful, how did we do it? These G3s ship with up to a 400 MHz power PC processor, and this is the first processor ever to ship commercially using copper. So it's very, very fast. And let's see how fast. Well, in addition to the processor running at 400 MHz, we've got the caches running at 200 MHz and the memory running at 100 MHz. And so when we compare these to the fastest Pentium II running the bus, the 450 MHz, right? In bite marks, that's at 5.6. The old G3s did 11.3, and the new G3s do over 13 bite marks.

So these are really, really fast processors. And to give you a demonstration of how fast, I'd like Phil Schiller, our worldwide vice president of product marketing, to join me, and we're going to do a bake-off. Phil, where's Phil? I need Phil. Hi. Come on. Morning, Steve. Thanks for joining us. Okay, what have we got here, Phil? Oh, we've got two really great computers.

We've got the brand-new Powermax G3 up on your left screen, running with a 400 MHz power PC processor in it, fastest Mac we've ever made. And on the right, I have the pleasure of using the fastest PC money can buy, a compact Pentium II with a 400 MHz Pentium processor in it, really fast 100 MHz memory box, AGP graphics, really the best you can get. And the demo we're going to show you today is of Adobe Photoshop, one of the most used applications in the professional market. And we've got a large Photoshop file created by one of our customers. And this is a real file that was created to do a real job. Now, how big is the file, Phil? The file is 40 MB, and it is filled with actions, scripts that Photoshop has that allows it to step through all the steps an artist would use to create an actual file used in the launch of a movie.

And we're going to have the fastest PC money can buy and the new Powermax G3 step through these things as fast as they can and see which one is the fastest. Now, this is exactly the same file running on both computers. So, let's go. Great. Select Photoshop here. Okay, you ready to go? Sure, if you'd like to count it down. I'll count it down. Three, two, one, go. Okay, there goes the Mac is off, the PC is thinking. Thinking. The deep thinker. So, here we go.

You might be getting a guess what this artwork is from. And the Macintosh is done. And the PC is just about done. We're getting there. There we go. Okay. Now, one of the things, let's run this again, Phil. One of the things that graphic artists do a lot in Photoshop is they reverse. So, let's even measure the reverse time. Sure. Three, two, one, reverse. So, this is the time for Photoshop to reset the graphic, undo all the actions it's taken and get us back to the beginning.

Okay. Now, the Macintosh is getting a static here. It's in reverse. The PC is just... We get an hourglass. We get an hourglass. And the Mac is ready again. The PC is thinking. And thinking some more. Okay. There we go. So, let's run this test again. I'll count it down. Three, two, one, go. I didn't push it. I'm giving it a head start. Okay. Now, the Macintosh is done now. We're ahead of them already. So, what does that mean? A Mac user can get up later, start work later, and still get done in the first semester? Uh-huh.

Exactly. And the Mac is done. So, what we're seeing here is that the PC is 62% slower than the Macintosh. Running Photoshop, exactly the same file, the kind of thing that our customers do every single day, many, many times per day. Thank you, Phil. Sure, Steve. Okay. Okay. So, we've made the most powerful PC that you can buy.

The best graphics. Now, Macintosh has always had great 2D graphics, but we wanted to go and extend that to 3D graphics. And we bet on a new technology that was going to come out about the same time as the G3. And that technology is the API Rage 128 graphics accelerator. It's the fastest graphics accelerator ever made for a personal computer. And Macintosh is the first and so far only PC to use it. We've complemented it with 16 megabytes of graphics memory, so it's very, very fast and it can store large texture maps.

Now a lot of different markets need 3D graphics, education, science, websites, business, but the one thing that pushes 3D graphics the hardest is games. Games not only push the 3D graphics the hardest, but they also push the whole system performance the hardest. And so I'd like to show you how fast this really is. Now in the PC market, none of the PC manufacturers build in good 3D graphics. So to get good 3D graphics, you have to add an add-in card. And the most popular one and the best one in the PC market is the Voodoo 2 card. And it costs an extra, thank you, it costs an extra $200.

What we're going to do is take a look at what the graphics built in to every new Power Mac G3. How does that compare with even this extra $200 card? Well, the graphics from the prior generation G3 used a chip called the Rage Pro. And it would play the game Quake at 36 frames per second. The Voodoo 2 card running in a PC, a 450 megahertz Pentium II PC, would run Quake at 50 frames per second. The new ATI Rage 128 built into every G3 model for no extra charge runs Quake at 68 frames per second.

So what I would love to do now is show you that. So can I get Phil back out here? Okay. Hey, Steve. So, Phil, what have we got here? Well, again, we've got our fastest new Mac, the Power Mac G3 400, up on our screen on the left. On the right, I have another Pentium II 450 megahertz compact, but this time I've added that Voodoo 2 card, one of the fastest 3D accelerators people can buy to run all the greatest games. Great. We've got a new great game here called Dark Vengeance, one of the hottest new 3D games. And what we're going to do is we're going to run Dark Vengeance on both machines at the same time. And there's a sequence of play events that this game is going to go through, and we're going to see which one gets done quickest.

Great. It's one of those great new games to exercise the 3D performance because some of the great effects there, fog, lightning, transparency. So we're really going to put these machines through the paces. So let's start up Dark Vengeance. Three, two, one, go.

Now, it turns out the Mac was able to render that game at 55 frames per second versus 45 frames per second on the fastest PC with a $200 Voodoo 2 adding card. So you can see the difference in performance there. The Mac is 20% faster than even the Voodoo 2 card added into the fastest PC. Thank you, Phil. Sure. Now that we've got the best hardware in the industry, we wanted to provide a graphic library, a 3D graphic standard in software for our developers.

And we chose what we think is the best one out there after talking with our developers, which is OpenGL from Silicon Graphics. And we've licensed that and we're going to be building OpenGL into all future releases of the Macintosh operating system. And I think the game developers are extremely excited about this. So we think we've nailed the best graphics in the industry. The most expandable, well, to start with, you can add up to a gigabyte of memory inside our new Power Mac G3s. And you can add a hundred gigabytes of disk inside that box using three disk drives. We can hold up to three disk drives and we will be shipping the new IBM 36-gig disk drives as our highest-end build-to-order option so that you can have over a hundred gigabytes of disk drives inside the box with these three drives.

In addition to that, we've added a fourth slot. So there are now four slots inside and three of them are 64-bit PCI for very, very fast peripherals. On the IOPorts, let me explain our philosophy first. We believe in using industry standards. We believe in using IO that is serial versus parallel. Because high-speed serial IO means much smaller cables, much nicer for consumers as well as for professionals. And we believe in plug-and-play. You should be able to plug it together and it should just work, no switches to set or anything else. So what IO have we built in to the new Power Mac G3 that meets this philosophy?

Well, of course, the first one is Ethernet. Ethernet is an industry standard. It is high-speed serial interface. And we have a hundred megabit Ethernet built in and you can get it now with gigabit Ethernet available in the new Power Mac G3, the first personal computer in the industry to offer it. The second thing we built in is universal serial bus. This is a new industry standard that is terrific. It's called USB for short and this is its symbol. Now what does USB do that the old serial ports in the Mac didn't do? A lot. Let me compare them. The old serial ports ran fairly slow.

USB is 30 times faster at 12 megabits per second. The serial ports you could connect two devices to your Mac. With USB you can connect 127 devices to your Macintosh. The old serial ports were not hot-pluggable. You needed to really turn off the power to use them safely. USB you can plug in and out with the power on and it automatically self-configures. And the drivers are dynamically loadable. So when you plug in a new USB device, the drivers will be dynamically loaded in. And it's an industry standard, which means that when a peripheral company wants to make a new peripheral, to make a version for the Mac, all they have to do is write the driver.

The hardware is exactly the same as what they would use for Windows. So this is really great. And the number of USB devices is going through the roof. There are soon to be over 100 USB devices shipping for the Macintosh by the end of this quarter. By the end of next month, over 100 will be shipping. We have built in FireWire. Apple invented this technology years ago and the IEEE adopted it as a standard, IEEE 1394, a few years ago. There was a press release just issued yesterday of many companies in the industry getting behind this. And it is really, really picking up momentum to be a very powerful industry standard in both the personal computer industry and the consumer electronics industry.

This is the symbol for FireWire. And let me take you back and explain why we need it. When the Macintosh first shipped with the SCSI ports, it was 12 years ago, 1987. And it was a breakthrough. It was a high-speed parallel interface that connected to both the internal disk drives, but also external disk drives and other peripherals like scanners, etc. And it worked great. But that was 12 years ago. What's happened since is that the SCSI ports that Apple built in is only used for external devices and much faster versions of SCSI or other interfaces are used for internal disk drives.

So Ultra ATA, which is very fast, much faster than the old Apple SCSI, is what we use to talk to disk drives in the new Power Macintosh G3. And for the very high-end, we use Ultra II SCSI. But this is different than the SCSI that comes out the back. The SCSI that comes out the back is a bit of an orphan and it's not so fast. And so when we compare it to FireWire, let's take a look, FireWire is five times faster than the old SCSI port that used to come out the back of a Macintosh. FireWire can connect to 63 devices instead of just 7. FireWire is hot-pluggable, so I can plug things in and out with the power on.

You should not do that with SCSI. You could destroy your devices and your computer. You need terminators with SCSI. If you don't plug the terminators in correctly, you can get data corruption or it just won't work. There's no such thing in FireWire. There's no such thing as terminators where you can throw them away. And no DIP switches in FireWire. In SCSI, you've got to set all these little switches just right or it doesn't work. None of this in FireWire, all automatic. And so if you like this, if you like these big thick cables and if you like the terminators and if you like setting switches, well that's okay because you can buy a SCSI card and put it in your new Power Mac G3.

But if you don't want to do any of that stuff, you can use FireWire. Nice thin cable, everything's automatic, it's much faster. And so as an example, Sony licensed FireWire from Apple several years ago and has made it the standard for digital video inside the digital camcorders. There's a FireWire connector on over 4 million digital camcorders today, over half of them in Japan. It is the industry standard for digital video and it is being adopted by more and more personal computer devices and consumer electronics devices. So let me give you an example of how this stuff works.

I have some FireWire devices over here. First of all, I have a Kodak digital camera. Like most digital cameras, most high-end digital cameras, it has a FireWire jack here that I can just plug right in to my new Power Mac G3. I've got a box that Sony sells that has analog video in and FireWire out so that I can get analog video in and out through FireWire by this very inexpensive box from Sony. I've got a magneto-optical drive by Yano, which is shipping next month, so I can store up to 500 megabytes of removable magneto-optical storage with a FireWire interface.

But one of the most exciting things is video. And I've got a video camera here with a FireWire jack on it and I'll just show you how this works. So I've got some FireWire cables here, and it's very easy. You just literally, the power's on, I've got a Power Mac G3 and the camera, they're both turned on, and when I plug this in, FireWire will take a few seconds to automatically configure itself, figure out what's going on, and put the video on the screen. So let me just do that. So I've plugged it in, and in a few seconds I should come up here. There I am, right there, I'm on. What I can do is I can just unplug it, right, it stops. I plug it back in, like this, a few seconds later, I should be live again.

There I am. Unplug it. Very simple. So I plug it back in again, and so now I've got some video here, but FireWire is more than just a point-to-point interconnection. It's a bus, which means I can plug multiple devices together on the same FireWire. So what I'm going to do now is I'm going to take that same FireWire, and I'm going to plug it into a second G3, which is up here, and I'm going to feed both of them with the same signal off the FireWire from the digital camera. So here I am, right here now, and I'm going to plug in my second one, right now, and it's going to take about three seconds to reconfigure, and hopefully in three seconds I'm up on both.

There I am. And now I'll unplug it, and it'll freeze, but now, here I am over here again on this, right, I'll plug it back in, and in a few seconds I should be up on both. So, let me quit out of this application, and let me show you one last thing. One of the things that our customers do a lot in the publishing and design market is they have such large files that they use external hard disk drives as sneaker nets to carry giant files between computers in the same office, or between computers in different offices across town, or even taking them on airplanes to different cities, right?

Have you ever done that? A lot of people do that, and it's a pain, because you've got to have a big hard drive, you've got to plug it in for power, etc. No more. And, of course, you have to turn your computer off before you plug it in, and you have to turn your computer off before you unplug it, right? No more. This is a new four gigabyte drive that will be shipped next month. It has two FireWire ports on it. It fits in your pocket, and not only does it communicate with FireWire, but FireWire from the computer has power on it.

So it's powered by the FireWire. So watch this. I'll take my FireWire here, and I will plug it into the disk drive, like this. The disk drive is starting to spin up now, and in a second, there we go. Let me go ahead and launch some data off, and I've got a QuickTime movie on here, so let me go ahead and launch that. It's coming off the hard drive. Now, I'll unplug this, and as soon as the QuickTime buffer fills out, it'll stop.

So, this is a small example of some of the dozens of FireWire devices that are coming on the market now and very soon, and we are extremely excited about FireWire. Now once you get video into the computer, you'd like to edit it, and Apple is going to be coming out with some really cool video editing software in the next few months called Final Cut, and we are demoing that out in our booth, and I invite you to take a look at it. It's really great. So, most expandable. Again, we have up to a gigabyte of memory, 100 gigabytes of disk, CD-ROM, DVD, disk drives you can put into these new machines, four slots with 64-bit PCI, Ethernet up to a gigabit per second. USB with up to 127 hot-pluggable devices, FireWire with up to 63 hot-pluggable devices, and we think we've built the most expandable Macintosh ever.

Lastly, best design. I know many of you have seen this already, but we are extremely pleased with the design of the new G3. It's very, very elegant, and it really changes your idea about what a mini-tower could look like. In addition, there's this magic latch on the side that when you open it, opens the whole side door of the product to give you access to everything, and the computer is even still running. It's very, very revolutionary if you need to get inside your computer frequently. We also have a whole new series of displays that are quite beautiful. And so, we think we've achieved the best design for this class of a product ever, and let me show it to you in person.

Let's get the video on please. So here we have it right here, and let me just go ahead and open it for you. We can just grab this and open it right like this, and you see the whole product right here. Come on around to the side. We've got our memory here, our processor, our firewire, we've got four I.O. slots here, we've got our three disk drives here, we have a removable storage up here. And again, you can just close it, open it, and close it. And there's a security thing on the back where if it's, isn't that great? Our engineers worked for almost a year to figure out how to do this just right.

And there's even a way to lock it on the back so that nobody can get into your computer if you don't want them to. So we think we've got, we think we've achieved the best design ever for this class of a product. So our four goals, again, most powerful, best graphics, most expandable, and best design, and we think we've really achieved these four goals for this wonderful new product. We actually had a fifth goal too, which was the best value. We brought our pricing down significantly to where you can buy one of these new G3s for a little over 200,000 yen, and we are very, very proud of this as well.

So, we made a video that I'd love to show you on the product, it's called The Look of Love. So if we could roll that now. The look of love is in your eyes, a look, your smile, a look, a look, a look, a look, a look, a smile can't disguise. We set out to make a computer just for our pro customers.

From the ground up we asked ourselves, what do they want? What do they want for performance? What do they want for expansion? What do they want for features and industrial design? What do they want for the whole system? To try and design an object that lists the reaction of, I really want that. And if they notice it, fine. I can hardly wait to hold and feel my arms around you. These machines abuse, but they take care of it. We're building the fastest machines in the PC industry. So we start with 400 megahertz processors, with a one meg backside cache, up to a gigabyte of high performance memory. It supports the technologies that we've been trying to use for a long time now anyway.

64-bit fiber channel, 64-bit PCI bus, 66 megahertz PCI bus. I have not seen any other machine, any other platform, have that kind of performance. If sex is power, and the computer gives you power, there's lots of sex in these machines. Gamers are looking for performance. Games today have realistic environments that are generated by tons and tons of polygons. So we need the most advanced machines out there to make the games look great. The brand new HCI Rage 128. This is the fastest graphics accelerator available. It's in the Macintosh first. The Rage 128 hardware is among the best available hardware. It delivers very good performance, extremely good quality. This platform will deliver several times better performance than anything we've had available on the Mac before.

With the new G3, we broke the laws of physics. We actually put more features, more expandability into a smaller box. So we designed it so once you flip the lever and the whole door opens, you have full accessibility between closures. To make it really easy to add memory, to make it really easy to add I.O. cards. No special tools, it's all right there. Handles to pick it up, a door to get inside. What a great thought, and it's a capital thing. The professional is going to want to test the I.O. capacity. The thing has got every real fast technology that's on the market today. Ultra ATA 33, FireWire, USB, 100 megabit Ethernet, all on the motherboard now. You want the future of I.O. at USB and FireWire. You don't have to worry about cable lengths, you don't have to worry about terminations, you don't have to worry about device select addresses.

You just plug it in and it works. I mean, 127 devices on USB, 63 devices on FireWire. It's the easiest thing in the world. I just take this camera, this simple FireWire cable, I plug it into my PowerMac G3 and digitally take that video onto my computer and bam, I'm editing video and I'm on my way. It's got to be absolutely compelling performance in terms of both speed and power, but also these have to be objects that are totally seductive. We designed a new family of Apple Studio Display to go along with the new G3. There's a 21-inch monitor that's the dream publisher's monitor. Trinitron, color management, digital color calibration, USB hub peripherals. 17-inch monitor that's the best quality in the business and still very affordable.

And the award-winning 15-inch Apple Studio Display. The stands float the displays, they put air underneath, they make them appear like that. Solid and crisp and sharp when you adjust them up. We had to make a powerful machine. We had to give customers tremendous features. We had to make it gorgeous. We also had to make it really affordable. When customers see the new technology and they see the new design, they're going to be all over these machines. They're going to see this and they're going to go nuts. They're going to want it. Building the fastest machines in the industry is great. It's what drives us. We're putting it right in the production. It is great. That's right. Now we don't have to hide the computer anymore. The computer absolutely can be sexy. It's... Yeah, it can.

So, that is our new Power Macintosh G3, and that's the first thing I wanted to talk about. The second, second of course, is iMac. We are so thrilled with the reception that iMac has had in Japan and around the world. It's been great. Thank you very much. iMac went on sale August 15th, and as you know, last year ended on December 31st, and so the question we got asked a lot was, how many iMacs did you sell in the first four and a half months of the product life?

And the answer is 800,000. That's one every 15 seconds during that time period. And that has made iMac the number one computer in America, and it's made iMac the number one computer in Japan. And that's made us very happy. So, we do a lot of market research at Apple, and we just got back our December research, and the question is, who is buying iMacs in Japan?

And let me share that with you now. It's pretty amazing. The most important thing when you're selling a consumer computer is how many first-time computer owners are buying your product. How many first-time owners are coming to the Macintosh? Because these are the most important customers. They expand our installed base, and they're choosing Macintosh as their first computer. And the industry average is in the mid-20%. And with iMac, it's 46%.

46% of Japanese buyers of iMacs are first-time computer owners. Another 16% are Wintel converts. And that means that 62% of the iMacs being bought are added to Apple's installed base. This is incredible for not only Apple, but for our software developers. A much larger installed base to sell into. And, of course, at least 38% are existing Macintosh owners. So we could not be happier with these statistics in Japan. Now, I'd like to share with you some other research.

that is integrated all over the world, Europe, Japan, the United States. Are you connected to the Internet? The IMAC customer base, 82% of them say they are connected to the Internet. This is over double the industry average. Now, when did you get connected? Two-thirds said the first day. How long did it take you to set up your IMAC and get connected to the Internet and access the Internet?

44% said 15 minutes or less. That went up to 62% for 30 minutes or less and 74% for 60 minutes or less. Again, IMAC is the easiest computer in the world to set up and access the Internet. Have you purchased any goods over the Internet? 42% said yes. And, which search engine do you use most regularly? Again, this was what we got.

Yahoo was number one, AOL was number two, Alphavista was number three, but look at number four. Sherlock was tied with Netscape. Now, Sherlock, for those of you that don't know, is a technology that we shipped in our last OS release, Mac OS 8.5, in October. So, it's only been out there at this point for three months. And it's tied with Netscape for the fourth most popular search engine. We're very excited about this. Now, new IMACs were $19.99. As you know, we upped the processor speed, we put a larger disk drive in, and we lowered the price to 158,000 yen.

But most important, we got them in color. It was very interesting. Last year, the number one question we got from customers and potential customers on the IMAC was not, can you put more memory in it, or can you make it faster, or can you put a bigger disk drive on it? It was, can you make it in my favorite color? That was the number one question. And the response we've had around the world to the new colored IMACs has been phenomenal. We cannot make them fast enough. And as you know, the five colors are blueberry, grape, tangerine, lime, and strawberry.

We named them after fruits because when you see them in person, you really do want to lick them. They are very, very tempting. So, we'd like you to collect all five of them. And some of you may have seen an advertisement we're running we call Colors. And I'd like to run it for you now because it conveys the message that the new IMACs come in colors, I think, pretty well. It was great because we made that commercial in California, and we could run it all over the world without localizing it because everybody knows the Rolling Stones.

It was wonderful. So, that was the second thing I wanted to talk about, the new IMACs. The third thing, what's this number? What's this number? What's this number? What is the significance of this number? This is the number of new and updated Macintosh applications that have been announced since the IMAC. The new and updated Mac applications since IMAC debuted on May 6, 1998. Tremendous response from the developers. And of these applications, over 900 of them are in Japanese.

So, what we are seeing is developers coming back to the Mac in very large numbers. And we are really excited about this, and we're working with them very, very closely. And we just could not be more excited. Now, one of our most important developers, of course, is Microsoft. We have a great relationship with Microsoft since we started our partnership now 18 months ago. And Microsoft, as you know, produces a fantastic version of Microsoft Office for Macintosh. In addition to that, they make a terrific browser, Internet Explorer, which we love, as well as Outlook Express. And it's my pleasure right now to invite Ben Waldman, who is the general manager of the Macintosh business unit at Microsoft, up on stage to say a few words about our relationship and some of their new products.

Ben? Ben? Ben? Ben? Ben? Ben? Ben? Ben? Ben? My name is Ben Waldman, and I am from the Macintosh Business Unit at Microsoft. I am also very happy to be able to participate at the Macworld 2019 this year. I would also like to thank you all for making Office 98 so popular in Japan.

Today, I would like to introduce two new products developed by the Office 98 team. However, I am still only learning Japanese, so I would like to continue in English. The two products which we are introducing today, Internet Explorer 4.5 and Outlook Express 4.5, really, I think, epitomize our approach to creating Macintosh software.

Because at Microsoft, we think that it is unacceptable for Macintosh software to be simply a ported version of a subset of a Windows application. Instead, we are committed to pioneering innovations first in the Macintosh versions of our software, and bringing new features first on the Macintosh and only on the Macintosh. When we look at the history of Internet browsers, when we look at that, we found that people had spent so much time on trying to turn the browser into a new platform, that we thought that they lost sight of the reasons that we create software in the first place, which is to help real people solve real-world, everyday problems.

We wanted to know what are people trying to accomplish on the Internet, and how could we help them accomplish those things more quickly, more easily, and we hope, with a little bit more fun. And that was our goal with Internet Explorer 4.5 and Outlook Express 4.5. So, let's take a look. To install Internet Explorer 4.5, all I do is put my CD in the CD-ROM drive, pick up the Internet Explorer folder, pick it up, and drag it to my hard disk. Just like with Office 98, there is no install program, and there is no list of questions that you have to answer. And so it takes about 10 seconds to install Internet Explorer 4.5, and you don't have to reboot your machine. And I don't think you can do that on Windows, last time I checked, only on the Macintosh.

Now, Steve has shown us that computer hardware can have style, it can be elegant, and at Microsoft, we also think that software should have style. So, in Internet Explorer, actually, first we should launch the product, and let me tell you that we spent a lot of effort with the product trying to improve its performance. So you'll notice that when we launch Internet Explorer, it launches twice as fast as it launches before, and it's the fastest browser to ever launch on the Macintosh. And it's also optimized for the second launch technology in OS 8.1 and 8.5, so if we quit Internet Explorer, and we... If we quit Internet Explorer and we launch the product again, you'll notice that it's so fast you wouldn't even see the splash screen.

So I mentioned that we wanted to give a sense of style to software as well, but you'll notice that I think there's something wrong with this machine here, with the demo machine here and things are running quite a bit slower here, you can see the mouse and I don't know what's going with this machine, but it worked at the demo, certainly. So why don't we try rebooting the machine and seeing what's happening here, because otherwise I think we'll have a little bit of a problem.

I think one of the things people always say about demoing products on the Internet is it would be great if you could bring the Internet with you, and I guess we didn't bring the Internet with us, it's outside of here and we just have the software here. So we're going to be relaunching a product here. I think one of the great things about the design of the new G3400 is that it has a reset switch right on the front, so I think we're going to find that switch and we're going to press it. So if we could have an audiovisual person maybe give us a little bit of a hand here.

I'm sure you're all happy to know that when we practiced this 20 or 30 or maybe even 40 times, everything worked just fine. But I think doing this is what kind of makes demonstration fun. So I thank you all very much for your kindness and generosity while I stand up here on stage and try to find amusing things to say, because I'm generally not a very interesting person, so I have to try to come up with different kinds of humor here. So I think we're rebooting the machine right now, which I can see on the monitors here, and you can't. So why don't we bring the machine back up on the monitor, if the audiovisual people could do that.

I think if we could bring the machine back up right now on the monitor. Can we do that? Can we bring the machine back up on the monitor? Then we can watch all the admits come by on the screen, and they're all pretty great. Oh, we have to wait until it's booted? Okay. Okay, so why don't we launch Internet Explorer, and I hope that we'll do a little bit better this time. Well, I think it's working a little bit better. Let's hope. What we'd like to do right now is, if we drag and drop the image from the browser, the nice image of the 5i Max, from the browser to the Macintosh, we won't just drag a plain outline of the image across, you'll actually see us drag a translucent version of the image.

And when we drop it in the finder, you'll notice that you don't get a blank document icon, but the document looks like a small version of the image itself. And that's, of course, only in the Macintosh version of Internet Explorer. Now, we thought that people spend quite a bit of time typing in their browsers, and we wanted to see if we could make that work a little bit better as well. So by far the most common thing people do to type in a browser is fill out a form, and the most common form they fill out is filling in their name, and their address, and their prefecture, and their phone number, and their email address. We thought, wouldn't it be nice if you could just click a single button and do that all automatically? Well, with Internet Explorer 4.5, you can.

We'll click the new autofill button in the toolbar, and you'll see that all of our information will be entered automatically in any form on the web. And of course, it also works with Japanese names, just like you'd expect in a Japanese product. Again, this is only in the Macintosh version of Internet Explorer. Another area where we thought browsers could be a lot better was printing. Today, no browser in the world prints right. We're up to version 4 in browsers, and printing just doesn't work. If I go to this web page, for example, page to order some tickets, and I try to print it, I won't get one page, I'll get four pages coming out of my printer. And we'll see the image will still have the size, it'll go off to two pages. And the image will have the orange background, and use up all the toner in my printer.

And that's just wrong. Let's take a look at the same picture in Internet Explorer 4.5. With our new Spark printing technology, it comes out with just one page, like you'd expect. And we leave the orange background off, just like you'd expect. Now, of course, we have a lot of Spark technology, and we try to guess how to do the right thing, but sometimes we make mistakes. So we've added new, for the first time in any web browser, adjustable print preview. By clicking print preview from the file menu, you can see exactly what this page is going to look like before it's printed, just like in Word or Excel. And I can decide to turn headers or footers on or off, or even turn the background back on. Or if I click the buttons on the right-hand side, and want to make my image look ugly, like before, I can do that as well, if I click the buttons on the right-hand side of the screen.

So, the next thing I want to show you is our integration with Sherlock. And we think Sherlock is a wonderful technology in macOS 8.5, and we wanted to do things in Internet Explorer to integrate and work with Sherlock. So, if you look at the Sherlock button on the right-hand side of the browser, you'll notice that if I click on it, you can not only open Sherlock, summarize the page to the clipboard using Sherlock, but I can also use IE and Sherlock together to find sizes related to my current page. So, if I wanted to find a page related to this IMAC page, I just click that, you'll see that Sherlock will get launched, and I'll have a list of results returned. And if I click on one of the results brought back, you'll see that it's actually a news report on the launch of the IMAC in Japan, with Sherlock and Internet Explorer working together.

And obviously, that's only on the Macintosh as well, because we only have Sherlock on the Macintosh. I also have two surprises for you. Just as we say that we want to have a good Macintosh product and not a portable Windows product, we're also determined to have a great Japanese product, and not the same thing as the American product. So, of course, if you want to have a great Japanese browser, you should be able to see Furigana in there. But today, no browser does that, and no browser can you see Furigana appropriately inside of a browser, and that's about to change. Because in Internet Explorer 5.0, which we're releasing next summer, which I'm showing you first today, instead of seeing the page like this, it's going to look like this. Why don't we... You can see that we have Furigana in there as well.

And finally, the last thing I want to say is that today, Microsoft is announcing a special for all of our Japanese customers, that today, anybody who buys an IMAC, starting next week and for two months, will be able to purchase Office for a special price for IMAC customers, which will be 40% off the price that everybody else has to pay, only in Japan for our Japanese customers. I want to thank you all for putting up with the demo and the time that it took, and more than that, I want to thank you all for using our software and helping us and supporting us and giving advice. We're very, very excited to be working with you and working with Apple, and we're very excited about continuing to deliver innovative products to you, our Japanese Macintosh customers, in the future.

Arigatou gozaimasu. That's every presenter's nightmare. I have a few more to go, so... Okay. Thank you, Ben. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Now, another area of applications that I would like to talk about today is games. For some reason, I guess the prior management of Apple didn't like games. We like games and we want great games on the Macintosh. We want the best games on the Macintosh. And so, let me review a dozen of the hottest games in the world that are all coming to the Macintosh.

Tomb Raider 3, coming out this spring. SimCity 3000, very hot. Fly, this is going to be one of the hottest flight simulators out on any platform. Tom Clancy's Rainbow Six. Imperialism 2. StarCraft, which is going to be very strong. Heretic 2, very strong title. Battlezone. Quest for Glory 5. Age of Empires, Myth 2, which is going to be very strong, and the newest release of Quake. The newest release of Quake, Quake as you know is authored by a man named John Carmack.

Brilliant, brilliant man. And he pushes games farther than almost anybody. And when we launched the Power Macintosh G3 last month in California, John Carmack himself came on stage and did a demo of the upcoming Quake Arena, which will be released simultaneously on the Mac and on Windows this spring. And I am going to show you the demo that he brought to us. I wish he was here today. And it's pretty amazing. This demo takes about a minute and a half, and it's going to show us one of the most aggressive things that we've ever seen on a computer using 3D real-time graphics.

We'll let it get started up here. You're going to see reflections and fog and mist like we've never seen before. Take a look at this. Quake 3 Arena. And the quality of the graphics are stunning, using the new Rage 128 and OpenGL. This is all based on OpenGL. And we've never seen this quality in games before. Do you think this is cool? Do you like it? Awesome!

This is the second time this has ever been shown in public. The first was at Math World last month. Look at the reflection in the mirror there. Again, never before been done in gaming. Look at this mist.

Again, very difficult effect to do in real-time 3D graphics. Very computationally intensive. So this is the future of high-end gaming. And you're going to see it first, and you're going to see it best, on the Macintosh. Now, we're putting a lot of energy to bring the best games in the world to the Macintosh platform. But we also want the most games in the world.

And the most games in the world are on the Sony PlayStation. There's a company in California called Kinetics, which has invented some software which allows you to go buy a Sony PlayStation game at the store, bring it home, and actually play it on your Macintosh. This software was announced last month at Math World and is shipping in the U.S. today. And we hope to see it in Japan by this summer or early fall. And to give us a demo of this, I'd like to have Phil to come back out. Hi, Steve. This is one of the most fun things I know that I can demo. It's just so great for me to play all of these great Sony PlayStation titles on the Mac.

And because of the power of the PowerPC and this great software, we can have a lot of fun with them. Also, we have the ability with USB now to add a lot of really great game controllers, even more than one, so two people can play together on the same Mac. So let me bring open Kinetics' virtual game station. I've got a CD of a game right in here. It's no special version. It's the same CD I can stick in my PlayStation. And it's a game called Gran Turismo. I've got my Nissan Skyline ready to go. Let's see how I do.

The performance is just great. Let's have a lot of fun. So anyway, that's the Nissan Skyline, and that's Gran Turismo. I'm going to play it just like a PlayStation at home. Thank you very much. So, we hope to have the best games. We hope to have the most games. And that's the third thing I want to talk about today. Fourth thing, Mac OS.

One of the things that is really wonderful is that we have one of only two high-volume operating systems in the whole world at Apple. And we can really put a lot of energy into advancing our operating system forward. And we've been doing that a lot with Mac OS 8. As you know, our latest release was released in October, Mac OS 8.5. It was a must-have upgrade. If you haven't bought it, I strongly suggest you get it. It's got some incredible features like Sherlock. Much faster, five times faster AppleScript. Much better color sync. And network copying that is now faster than NT. So, if you're in design and publishing or any other customer site, we believe that Mac OS 8.5 is a must-have upgrade.

Shipped in October 98. We've sold over a million upgrades to date. And coupled with the machines we've shipped, there are over two million copies of it out there already in approximately 90 days. So, we're very happy with the reception. Everybody seems to think it's pretty great. We're also working on future generations of the Mac OS. And the next big one is called Mac OS X that you may be familiar with. We are going to ship our first Mac OS X product this month in the U.S. and in April here in Japan. And that is Mac OS X Server. We've taken the core OS and we're going to ship it as a server.

And it's a dynamite server. And let me take you through what this is. First of all, we start off with a very powerful operating system kernel called Mac. And to that, we add Macintosh file service. So that you can have files on the server that you can download to clients transparently. In addition to that, we're adding a really cool feature to the server called net booting. To where you can have an iMac as a client, say. And you can actually boot off a copy of the operating system on the server. Now, why would you ever want to do that? Because you can have just one copy of the operating system on one server.

And serve as many Macs as you want. And if you update that operating system, you change only one copy in one place. And every user takes advantage of it. The same reason you put files on a file server. If you have a copy of Apple Works on a file server. And you update it once. Everybody who then launches that application gets the updated copy. In addition to file service and net booting, we want this to be a dynamite web server. And it is. It's a very, very high performance web server. And we have added Apache. Which is the number one web server software package in the world.

Over half the websites in the world use Apache as their web server. Ours and Apple do. And it's very good. And to create applications which can run on Apache. We are bundling in a copy. of our extremely powerful WebObject software that has been used by over 3,000 corporations now and is the best application server for writing web applications we believe in the world. In addition to that, for people that want to write very sophisticated custom apps, we've included Berkeley 4.4 Unix and Java. And so this is Mac OS X Server. We think it's very, very comprehensive, and we're going to price it very attractively.

We're going to ship it in Japan, localized, in Japanese, in April. So Mac OS X Server, that was the last thing I wanted to talk about today. You can find these products starting today in a new way in Japan. In addition to going through our terrific dealers, the Apple Store, Apple's online store, is opening its eDoors today. Fully localized. And so you can please visit our Apple Store online, and you can buy any of the products that are currently being shipped, and of course these new ones when they ship online.

Now, I don't want to end today without one final demonstration. I'd like to give you a demonstration of Mac OS X Server. And what I want to demonstrate is the net booting and the file service and Apache and WebObjects, all off the same server. So I have a G3 here. We're going to sell Mac OS X Server two ways, as software only and as bundled with our high end Power Mac G3. This is a Power Mac G3 server bundle. It has 256 megabytes of memory. It has a four port, 100 megabit ethernet card in it, single computer.

And I've got a client. So let me go ahead and demonstrate this stuff. First thing is, I want to tell you about this client. This is an iMac. But it's not a normal iMac. I've done something to it. I've done a diskectomy. I have taken out the hard disk drive. This is a diskless iMac. So there's no disk inside this thing. So I'm going to turn it on, and it's going to go ahead and boot off the server. It'll take a few seconds to do a memory test, and it will start booting off the server. You'll get a chance to see that in just a second, if everything's working right. OK, it's taking a few seconds to warm up here.

It should be booting. Here it comes. It should be on the screen now. Do we have it on the screen? I'm seeing it on my iMac here, but I don't see it on the screen. Guys, can I get this on the screen, please? There we go. So I'm now booting over the network, off the server here. And with 100 megabit ethernet, it actually boots very fast once it gets going. So here we are, and I'm booting a login panel for security. I have to log in. So I'm going to go ahead and log in. My name, I don't have a password in here yet. So I've logged in, and here's my desktop. Again, my whole desktop is saved. My whole desktop information, all of my preferences, all of my files and everything, are on this server.

And so if I have a network of iMac clients, I can go to any one of them and type in my name and password and have my world, my whole desktop, with my files and my preferences loaded into that iMac automatically. So I'm going to go ahead and log in. So let me just show you, as an example, downloading an application. It's oftentimes faster than loading off your hard disk, if you haven't. And so let me load Apple Works. So we're downloading Apple Works right now, just loading in. As you see, I don't have to do anything special. So I just downloaded this document here. I can just scroll down. Simple Apple Works document. Again, I didn't have to do anything special.

I just double-clicked on the file, and it was automatically downloaded. It's completely transparent. OK. So let me load now an internet, Internet Explorer. Let me launch Internet Explorer. There we go. And now we've got Internet Explorer. And what website is this? This is a website that is running on this very same server. It's running on Apache. So I've just shown you NetBooth and file service, but now I'm also showing you a web application which is running on the same server. And I built it using WebObjects very quickly. So what does this application do?

It's just a very simple application that just puts something up here so I can download some video. So let me go ahead now and download a QuickTime video off the server to this point. I'll use the same video we used before. QuickTime is buffering up its data. It's been a long time since you looked at me. I can't handle the thought of you. I'm hungry. I've been here since the last you made me. Get back together. Come back and see me. Three days in the living room. I really have to come out and talk with you. I know you've tried, but I know you won't be forgiving me. It's been three days since the last day. I'm sorry. I hope you never want to look at me. OK. So that's the video. Now, that's pretty cool.

We've netbooted the machine. We've downloaded documents and applications. We've downloaded Internet Explorer. We've looked at a website that's running here that we built with WebObjects. We've downloaded QuickTime. But what would happen if you put 50 iMacs on one server? Would it get clogged up? How would it perform? Well, I'd love to show you that right now. Let's take a look at our 50 iMacs. OK. Now, I've got 49 iMacs here. Seven rows with seven each. And here's my 50th one right here. And what I'm going to do is, using my web application, I'm going to send a signal to all those over the network to load a QuickTime movie in place.

I have three QuickTime movies. So if each of these asks for a movie, I'm going to give them the next one in sequence. And they're all independent. 50 independent video streams going from this server to all 50 of these iMacs. OK? So let's see how it goes. All right, we're starting here. And let's go ahead and load this one, too. So I've got three different movies running here. I've got 50 computers on this server, trying to load their movies now.

About half of them are going. All right. Most of them are going now. We'll see. What is going on? I have no idea. Well, I don't know. Well, I don't know, guys. I don't know. Well, it didn't work as I planned. But anyway, that was supposed to be the demo that I wanted to show you.

It actually worked really well. But for some reason, it's not working here right now. So we've got a lot of stuff in the booth today to show you. Please take a look at it. I think we're trying very, very hard to build the best computers in the world for you. And I think we're making some progress. Please let us know what we're not doing well enough. And we'll try to do even better in the future. So thank you very much for a chance to be with you this morning. Thank you. Thank you. Thank you.

Thank you. Thank you very much for coming to the MacMorris Expo Tokyo 99 viewing park. Please be careful not to leave anything behind when you return. Also, the receivers for the same-day tickets are collected at the exit of the venue, and the ones that are missing are collected at the commemorative ticket counter. Thank you for your cooperation.