VM Labs
Encyclopedia
VM Labs was the company behind the Nuon technology which was used in several DVD
players from Samsung
, Toshiba
, & RCA
and the "Streamaster" IP set-top box from Motorola. The Nuon technology brought features which other DVD players didn't have at the time (around 2000), such as playing games created for Nuon, visual effects while playing audio CDs (provided by VLM (Virtual Light Machine) which was created by Jeff Minter
), 128 speed rewinding/fast forwarding, zooming up to 16x & many more features. VM Labs business model was as a fabless semiconductor and software platform company
The founder of VM Labs, Richard Miller, was a former vice president of Atari Corporation
, and several prominent VM Labs employees (including Jeff Minter) were also associated with Atari Corporation prior to its takeover by JTS. As a result, many former Atari users were initially enthusiastic about the Nuon DVD technology. This enthusiasm lead to disappointment in some cases, as VM Labs was harshly criticized by some Nuon fans for promising features such as a modem and many games, but delivering very little.
After a funding round collapsed shortly after September 11, 2001 VM Labs was forced to lay off half their staff and take on debt
to stay afloat. Many games in development were cancelled & some developers lost money. In December 2001 VM Labs filed for Chapter 11 bankruptcy and the Nuon technology was purchased in February 2002 by Debtor-in-Possession Genesis Microchip
, who planned to integrate the Nuon and Faroudja
technologies for the DVD market. However, in August 2002, Genesis decided to shut down the Nuon division, development on the Nuon technology was stopped, and all the former VM Labs employees were fired. Some engineers were later hired back to develop new products based on the Nuon technology.
aka eye candy. Others believe the company should have paid more attention to providing enhanced features for DVD playback rather than concentrating on games. Still others simply think the company tried to be too ambitious just as a major stock market
downturn (the end of the dot-com bubble
) made raising capital
more difficult, and as the DVD chipset market became commoditized through the entry of competitors like Mediatek
.
DVD
A DVD is an optical disc storage media format, invented and developed by Philips, Sony, Toshiba, and Panasonic in 1995. DVDs offer higher storage capacity than Compact Discs while having the same dimensions....
players from Samsung
Samsung
The Samsung Group is a South Korean multinational conglomerate corporation headquartered in Samsung Town, Seoul, South Korea...
, Toshiba
Toshiba
is a multinational electronics and electrical equipment corporation headquartered in Tokyo, Japan. It is a diversified manufacturer and marketer of electrical products, spanning information & communications equipment and systems, Internet-based solutions and services, electronic components and...
, & RCA
RCA
RCA Corporation, founded as the Radio Corporation of America, was an American electronics company in existence from 1919 to 1986. The RCA trademark is currently owned by the French conglomerate Technicolor SA through RCA Trademark Management S.A., a company owned by Technicolor...
and the "Streamaster" IP set-top box from Motorola. The Nuon technology brought features which other DVD players didn't have at the time (around 2000), such as playing games created for Nuon, visual effects while playing audio CDs (provided by VLM (Virtual Light Machine) which was created by Jeff Minter
Jeff Minter
Jeff 'Yak' Minter is a British computer/video game designer and programmer. He is the founder of software house Llamasoft and his recent works include Neon , a non-game music visualization program that has been built into the Xbox 360 console, and the video games Space Giraffe , and Space Invaders...
), 128 speed rewinding/fast forwarding, zooming up to 16x & many more features. VM Labs business model was as a fabless semiconductor and software platform company
The founder of VM Labs, Richard Miller, was a former vice president of Atari Corporation
Atari Corporation
Atari Corporation was a manufacturer of computers and video game consoles from 1984 to 1996. Atari Corp. was founded in July of 1984 when Warner Communications sold the home computing and game console divisions of Atari to Jack Tramiel. Its chief products were the Atari ST, Atari XE, Atari 7800,...
, and several prominent VM Labs employees (including Jeff Minter) were also associated with Atari Corporation prior to its takeover by JTS. As a result, many former Atari users were initially enthusiastic about the Nuon DVD technology. This enthusiasm lead to disappointment in some cases, as VM Labs was harshly criticized by some Nuon fans for promising features such as a modem and many games, but delivering very little.
After a funding round collapsed shortly after September 11, 2001 VM Labs was forced to lay off half their staff and take on debt
Debt
A debt is an obligation owed by one party to a second party, the creditor; usually this refers to assets granted by the creditor to the debtor, but the term can also be used metaphorically to cover moral obligations and other interactions not based on economic value.A debt is created when a...
to stay afloat. Many games in development were cancelled & some developers lost money. In December 2001 VM Labs filed for Chapter 11 bankruptcy and the Nuon technology was purchased in February 2002 by Debtor-in-Possession Genesis Microchip
Genesis Microchip
Genesis Microchip Inc. is a leading edge world wide supplier of integrated circuits for video processors in flat panel LCD TVs and Monitors. Founded in 1987 by Paul Russo in Markham, Ontario, Canada and it became a public company in 1998 and now employs over 563 people worldwide...
, who planned to integrate the Nuon and Faroudja
Faroudja
Faroudja Labs was a San Francisco based IP and research company founded by Yves Faroudja.Faroudja specialized in video processing algorithms and products...
technologies for the DVD market. However, in August 2002, Genesis decided to shut down the Nuon division, development on the Nuon technology was stopped, and all the former VM Labs employees were fired. Some engineers were later hired back to develop new products based on the Nuon technology.
The Causes Behind VM Labs' Demise
The cause of VM Labs' failure is a matter of debate. Some Nuon owners accuse VM Labs of poor thinking when it came to video games, accusing the company of misunderstanding the market for their games. According to these fans, VM Labs over-emphasized simple games for casual gamers when in fact such casual gamers are impressed by graphicsGraphics
Graphics are visual presentations on some surface, such as a wall, canvas, computer screen, paper, or stone to brand, inform, illustrate, or entertain. Examples are photographs, drawings, Line Art, graphs, diagrams, typography, numbers, symbols, geometric designs, maps, engineering drawings,or...
aka eye candy. Others believe the company should have paid more attention to providing enhanced features for DVD playback rather than concentrating on games. Still others simply think the company tried to be too ambitious just as a major stock market
Stock market
A stock market or equity market is a public entity for the trading of company stock and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately.The size of the world stock market was estimated at about $36.6 trillion...
downturn (the end of the dot-com bubble
Dot-com bubble
The dot-com bubble was a speculative bubble covering roughly 1995–2000 during which stock markets in industrialized nations saw their equity value rise rapidly from growth in the more...
) made raising capital
Capital (economics)
In economics, capital, capital goods, or real capital refers to already-produced durable goods used in production of goods or services. The capital goods are not significantly consumed, though they may depreciate in the production process...
more difficult, and as the DVD chipset market became commoditized through the entry of competitors like Mediatek
MediaTek
MediaTek Inc. is a fabless semiconductor company, designing and selling components for wireless communication, optical storage, GPS, high-definition digital TV and DVD products. The company was founded on May 28, 1997...
.