Concept

Creative Technology

Creative Technology Ltd., or Creative Labs Pte Ltd., is a Singaporean multinational technology company. The principal activities of the company and its subsidiaries consist of the design, manufacture and distribution of digitized sound and video boards, computers and related multimedia and personal digital entertainment products. It also partners with mainboard manufacturers and laptop brands to embed its Sound Blaster technology on their products. The company also has overseas offices in Shanghai, Tokyo, Dublin and the Silicon Valley. Creative has also been listed on the Singapore Exchange (SGX) since 1994. Creative Technology was founded in 1981 by childhood friends and Ngee Ann Polytechnic schoolmates Sim Wong Hoo and Ng Kai Wa. Originally a computer repair shop in Pearl's Centre in Chinatown, the company eventually developed an add-on memory board for the Apple II computer. Later, Creative spent 500,000developingtheCubicCT,anIBMcompatiblePCadaptedfortheChineselanguageandfeaturingmultimediafeatureslikeenhancedcolorgraphicsandabuiltinaudioboardcapableofproducingspeechandmelodies.Withlackofdemandformultilingualcomputersandfewmultimediasoftwareapplicationsavailable,theCubicwasacommercialfailure.Shiftingfocusfromlanguagetomusic,CreativedevelopedtheCreativeMusicSystem,aPCaddoncard.SimestablishedCreativeLabs,Inc.intheUnitedStatesSiliconValleyandconvincedsoftwaredeveloperstosupportthesoundcard,renamedGameBlasterandmarketedbyRadioShacksTandydivision.ThesuccessofthisaudiointerfaceledtothedevelopmentofthestandaloneSoundBlastersoundcard,introducedatthe1989COMDEXshowjustasthemultimediaPCmarket,fueledbyIntels386CPUandMicrosoftWindows3.0,tookoff.ThesuccessofSoundBlasterhelpedgrowCreativesrevenuefromUS500,000 developing the Cubic CT, an IBM-compatible PC adapted for the Chinese language and featuring multimedia features like enhanced color graphics and a built-in audio board capable of producing speech and melodies. With lack of demand for multilingual computers and few multimedia software applications available, the Cubic was a commercial failure. Shifting focus from language to music, Creative developed the Creative Music System, a PC add-on card. Sim established Creative Labs, Inc. in the United States' Silicon Valley and convinced software developers to support the sound card, renamed Game Blaster and marketed by RadioShack's Tandy division. The success of this audio interface led to the development of the standalone Sound Blaster sound card, introduced at the 1989 COMDEX show just as the multimedia PC market, fueled by Intel's 386 CPU and Microsoft Windows 3.0, took off. The success of Sound Blaster helped grow Creative's revenue from US5.4 million in 1989 to US$658 million in 1994. In 1993, the year after Creative's initial public offering, in 1992, former Ashton-Tate CEO Ed Esber joined Creative Labs as CEO to assemble a management team to support the company's rapid growth.

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