Collecting The Obscure: The Failure Of The Philips CD-I Multimedia System

February 22, 2019

The Dutch electronics company Philips is not a name that most modern video game enthusiasts would recognize today. However, their contributions to the home video game market in the late 20th century were extraordinary. Magnavox, a subsidiary of Philips, would achieve mass success with the creation of the Odyssey and Odyssey 2 home video game systems before Atari would eventually dominate with the introduction of the Atari 2600. Magnavox would exit the home video game market sometime in the early 1980s, but their parent company, Philips, had bigger plans. Philips was becoming a pioneer in the home electronics business due to their involvement in the co-creation of the compact disc format along with fellow rival Sony. The compact disc, or CD as it is called, launched in 1982 and allowed music and eventually data to be stored in ways previously not thought possible.
By 1986, computer and video game manufacturers were confident that CD-ROM technology would become the medium of the future. This caused a massive “gold rush” as electronic giants rushed to create new hardware to use this powerful new technology. Philips would find itself in direct competition with Sony, who they worked with to create the technology to begin with. Unlike Sony who saw the potential to create advanced video games using the CD-ROM format, Philips’ interest was in creating a possible piece of hardware that would act as a stripped down computer and connect to a person’s home television set. The device would interact with the individual’s television and introduce educational software and interactive experiences to the home. Philips would secretly develop this device for the next several years, while Sony eyed entering the home video game market. In December 1991, Philips would release its first stand-alone interactive system known as the Philips CD-I to a lukewarm audience.
At first, Philips refused to market its new console as a game machine. This was a huge mistake. The system was being hailed as a multimedia device, which was a popular buzzword at the time to describe a computer-based device with multiple uses. Philips promoted the device as a standalone music CD player, but also as a stripped-down computer with no keyboard or mouse that could play educational software and eventually surf the web, all from a person’s television set. The early pieces of software for the system were very crude, with little interaction. Most were simple learning games aimed at children along with graphical encyclopedias for older users.
Behind the scenes, Philips was also in secret negotiations to possibly develop a CD-ROM device for Nintendo’s Super Nintendo Entertainment System. Unfortunately, prior to speaking to Philips, Nintendo was also already working with Sony to create a similar device, and when Sony got wind of the possible Philips deal, Sony pulled out of the project, leaving Nintendo stranded. As a result, Nintendo canceled the long-awaited Super Nintendo CD-ROM drive. Ironically, this would become one of the greatest upsets in video game history, as Sony would eventually sting Nintendo and go on to become one of their greatest competitors, as it was out of this failed partnership that the Sony PlayStation brand was created.
By 1992, the Philips CD-I was failing to sell units. Consumers didn’t know what to think of the expensive unit that was priced at close to $1,000 and had no true must-own applications. Philips was left without being able to develop a CD-ROM-based system for Nintendo, so Philips decided to now market its underpowered multimedia system into a dedicated game machine. The company did this by tempting computer game manufacturers with low-cost royalty fees if they decided to produce games for the failing system. In doing so, Philips agreed to more aggressively market the system and start to redesign the system at a lower price point to attract consumers. Unfortunately, by this time, technology started to increase rapidly. Newcomer 3DO would launch its overpriced but more powerful 3DO REAL Interactive Multiplayer in October of 1993, and Sega already had a much cheaper CD system, known as the Sega CD, readily available for its popular Sega Genesis system. This left Philips in a unique position, either adapt or die. Philips frantically spent millions of dollars creating their own games for the CD-I platform. They were even able to obtain Nintendo licenses to create several spinoff “Legend of Zelda” games that appeared on the CD-I format. This was an astonishing feat because even to this day, virtually no Nintendo-created characters had ever appeared on a competing company’s hardware.
By 1994, the Philips CD-I would be seen retailing for about $299, and further price cuts would be coming. The company tried hard to release quality games, and some were not that bad. “Burn Cycle” was a cyberpunk adventure game that used full-motion video and launched with a multimillion dollar ad campaign. Sadly, the game was mediocre at best but is considered a classic today due to its “Blade Runner”-like atmosphere and cyber-future based plot.
By 1995, with the pending release of the Sony Playstation and Sega Saturn systems, Philips quietly started to pull the plug on the system. The company discontinued production and sold the last of the consoles through the few retailers that still carried the product. All in all, the CD-I became a lesson in how not to release an electronic device with no clear-cut vision.
Today, the Philips CD-I system is an anomaly in the video game collecting scene. If you are lucky enough to own any of the ultra hard-to-find “Legend of Zelda” spinoff games, then you have something worth hundreds of dollars each. “The Faces of Evil” and “The Wand of Gamelon” are highly coveted by Nintendo collectors. Each one can be seen selling for $125 to $150 each if complete and in good condition. As far as CD-I values go, these are the most sought-after games for the system. Other games can be seen selling for as little as $20 to $60 each. Systems can be had for about $100 to $150 depending on the model.
In conclusion, the Philips CD-I is a curiosity at best and an abomination at worst. Most of the games are mediocre, and there is really no reason to own the system or its games. There is absolutely nothing that will create demand for this system as time goes on, and even the two rare Zelda games can’t change that. What makes the CD-I most memorable is what it could have been, not what it was. If that appeals to you, then maybe checking out the CD-I is well worth it. Just don’t expect the value of this system or its games to increase over the long term. That would be as uncommon as finding a Nintendo exclusive on a competing console.

Shawn Surmick has been an avid collector since the age of 12. He currently resides in his hometown of Boyertown, Pa., and is a passionate collector of antiques and collectibles. His articles focus on various topics affecting the marketplace.




 

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