Computer discount software student

NATIONWIDE CPR REPORT -- Software aimed at kids is a booming business. The category now accounts for 15% of overall software sales, up from a mere 2% a few years ago, and at the mass level, publishers estimate that the figure may approach 30%.

Find/SVP studies credit this rise to the increased use of PCs in middle-class and lower middle-class families--mass merchants' best customers. Consequently, retailers are beefing up their selections--and so are publishers.

The past few months have seen significant shifts in the marketplace, among them improved packaging, deeper content, sharper price points and an increased use of licensed properties.

Pricing changes have not been as dramatic as forecasted a year ago, but significant numbers of "A" titles are now less than $30 at retail, and some are less than $20.

"We're looking to grab a slice of the 98% of people who don't regularly buy software," noted Saban's David Koch. "At $15 or so, a kid can save up his allowance to buy one of our titles, and a parent can buy it without agonizing over price."

Softkey's rapid growth, with its purchase of MECC and The Learning Company, will undoubtedly push prices down in the coming year. The budget-priced giant can offer highly visible titles at bargain prices, forcing other upper-end developers to match the price.

Sanctuary Woods' Suzie O'Hair noted that mergers and the move into blue-collar homes have changed the sales proposition. "We're not selling to two MBAs with a BMW in the garage anymore."

In packaging, the industry seems to be shifting to smaller, tougher and more retail-friendly packs. Saban has led the way with crush-proof, slim packages that can be stacked, pegged or shelved with ease.

The major change this year, though, is the sheer quantity and ever-increasing quality of kids' software.

3- to 6-year-olds

With the outpouring of titles aimed at children ages 3 to 6, brands familiar to consumers are becoming a necessity. Publishers targeting this age group include:

* Viacom: Nick Jr. Math, which kids can play alone or with parents, keeps a running scorecard on the child's progress to help parents isolate trouble spots.

* IBM Multimedia Studio: Its new Kid Riffs musical title teaches kids to play the keyboard through simple games that involve clicking on animals to pick out tunes that can be played back. In the upcoming The Jungle Book, kids learn animal languages and communicate with game characters through a microphone and voice recognition feature.

* Palladium Interactive: The start-up is preparing titles for '96 based on the PBS hit show "Wishbone," about a winsome puppy that stars in literary classics. The software, due this fall, will incorporate educational components. About half of Palladium's output (four multi-packs featuring hit titles by front-line publishers, priced at about $30 for a fivepack) will involve licenses. The others will feature characters developed in-house.

* Davidson: Reading Blaster Jr., the first early-learning title in its Blaster series, is already shipping. Characters in an intergalactic Blastership send players personalized e-mail as the crew makes its way to four planets, each concentrating on a particular reading skill. Younger kids get phonics training, eventually writing their own storybook.

* Kid's Count: The startup's first title, Jack's House, imparts practical lessons as preschoolers explore a surprise-filled house, as well as suggesting family activities away from the computer.

* GT Interactive: The publisher has signed exclusive agreements with L'il Critter and The Berenstain Bears creators Mercer Mayer and Jan and Stan Berenstain.

* Living Books: Dr. Seuss' ABC will be followed up with a rollout of titles based on Dr. Seuss characters, with a focus on pre-reading and pre-math skills. Also coming are Just Dad and Me and Just Mom and Me. These are follow-ups to Just Grandma and Me, only with greater interactivity.

* Digital Kids: Kids On Site gives youngsters an up-close look at the everyday world of construction and challenges them to operate the machinery.

* Maxis: Maxis enters the preschool market with Marty and the Trouble with Cheese, a voice-activated title in which characters respond to spoken instructions as the child helps a mouse forage for cheese and sneak it past a sleeping cat.

6- to 9-year-olds

Children ages 6 to 9 have too often been lumped together with younger siblings. While many still are fascinated with animation and cute characters, they need products suited to their sensibilities. Publishers producing software for this group include:

* Sanctuary Woods: NFL Math, the newest title, is aimed at kids ages 7 to 10, and uses NFL statistics and players to provide math lessons. Franklin's World of Math, due this quarter, is aimed at 4- to 7-year-olds and features the popular turtle character from Scholastic Books.

* Digital Impact: Ozzie's Travels-Destination: Mexico explores Mexican history, challenging kids to design a pyramid, create an Aztec calendar or build a pinata. The activities and a built-in coloring book and drawing program deliver an educational message. Titles exploring Japan and India will arrive later this year.

* Terraglyph: Hansel and Gretel, one of the knockout titles of the year, is a feature-animation quality adventure that blows away virtually everything on the market in terms of graphics. While mainly family entertainment, a unique language feature allows users to enter a primary and secondary language. About 200 words in the secondary language will pop up from time to time, giving kids an introduction to learning a second language. The upcoming Rumplestiltskin's Labyrinth of the Lost will quiz kids on science and history, rewarding correct answers with progressively tougher questions. Terraglyph plans to release one title per month by the middle of this year, most with an educational slant.

* Saban Entertainment: The creator of the omnipresent Power Rangers has five interactive titles on the market and more than one dozen in production. Saban has developed kid-friendly packaging that includes jigsaw puzzles, coloring books, a video-mixing title and a print kit, all protected by a slim plastic shell similar to a VHS package, with a pop-up feature to make removing the disc easier. Discs have an extra layer of varnish to deter damage, and each has a colorful graphic representation, like a trading card, to promote collectibility.

10 and up

For older kids, which Discovery Channel Multimedia has dubbed "tweens," software offerings have been spotty, leaving the market greatly underserved historically. But no more.

* Discovery: Operation: Weather Disaster, an adventure with male and female leads, teaches kids meteorology by pitting a group of teens and their robot ally against the evil Weatherman, who is unleashing meteorological disasters in a bid to destroy the earth. SkyTrip America, an American history title coming next year, takes kids through 12 historical regions, solving mysteries along the way. Invention Studio explores 50 of the world's great inventions, then challenges players to invent products and prove they work in a test laboratory.

* Edmark: Strategy Games of the World features ancient strategy games from several cultures, including the Japanese classic Go. Difficulty levels are adjustable, and animated strategy coaches teach the finer points. Occasionally videos of real people, from painters to plumbers, pop up to discuss strategic thinking in everyday life, and how it can be used to win the game. A free title, including Edmark's Thinking Things series, comes with the purchase of Strategy.

* Viacom NewMedia: Indian in the Cupboard loads math and problem-solving content into an entertainment title based on the popular book and movie of the same name.

* Grolier: The new version of the Grolier Multimedia Encyclopedia includes an online component so kids can research topics more deeply. How Would You Survive requires players stranded in one of three historical eras (the Aztec nation, ancient Scandinavia or ancient Egypt) to learn the language, culture, religion and folkways of the period--or become the next human sacrifice. Battle of the Ironclads, from Grolier's new 3 Prong Plug division, will allow kids to assume the roles of either the Monitor or the Merrimac, as well as reproduce the battles that changed naval warfare forever.

* Sanctuary Woods: How Do You Spell Adventure?, for 10-to 14-year-olds, uses an Indiana Jones approach to spelling, vocabulary and reading comprehension.

* Softkey: The value-priced Student Survival Pack for teens includes five full titles (The American Heritage Standard Dictionary, The Muppet Calendar, The TIME Almanac of the 20th Century and Bodyworks 3.0) for about $40. The bundle also includes MPC Internet Wizard and five free hours on AT&T's Imagination Network.