Opcode's Future in Question

October 31, 1999

The rumors are rampant and now many Opcode users are wondering whether they will have any product support or upgrades down the road. It's difficult to tell just what exactly is going on at Opcode, but it is pretty clear that the future of Opcode is in question as a number of employees have left the company.

Let's start with the official word from Opcode and its parent, Gibson:

Opcode Announces Major Reorganization
–Sweeping Changes Make Way for the Future–

Mountain View, CA - Opcode Systems, Inc., a wholly owned subsidiary of Gibson Guitar Corp., has announced a major restructuring of its business. Opcode is reorganizing to strategically position itself for future operations.

"Opcode attracted Gibson as an investor because of the promise that it held for the future. Gibson and Opcode both realized that this future would require development time and significant financial support by Gibson," commented Gibson CEO Henry Juszkiewicz. To that extent, Gibson has devoted time and money to Opcode because of its belief in this promise.

As a result, Opcode has now been provided the resources to pursue development opportunities to the point that it can focus its operations toward specific goals, and is in the process of reorganizing to pursue those efforts. However, these changes may take several months. "Although change is always disruptive, it is essential to progress," added Juszkiewicz.

Opcode apologizes for any concern that has resulted from these efforts, and has every confidence that these changes, when completed, promise a more rewarding future for the company and its customers.

A reliable source indicates that there will be a period of at least three months where almost all operations will be shut down. It was implied that normal operations would resume, but that fact seems much less certain. There is apparently a dispute between Gibson (which acquired Opcode in 1998) and Opcode staff, and the Board of Directors is in deadlock. Until that is resolved one way or another, not much will happen.

Someone has posted a rather detailed alleged description of the situation at www.geocities.com/SiliconValley/Monitor/6454 (a new window will open when you click on the link), and one insider tells us that everything listed there is in fact true. In that case, things are certainly not in good shape. With the board in deadlock and personnel gone, any product development or support doesn't seem likely. And with lawsuits ongoing, it's unlikely the participants will reveal much in public, keeping the events shrouded.

The situation at Opcode will affect some other companies as well. Digidesign recently posted a message to their User Conference area regarding the new 128X MIDI Interface, a product announced at the AES show. Plans to manufacture and distribute the interface have been put on hold, since Opcode was involved in the product's production. Retailers and distributors will also be stuck with products that they can't return to Opcode.

It would certainly be a shame to see Opcode disappear. Some of their products and technology such as OMS have been popular and widely supported. And there are thousands of customers (some report over 40,000 registered Vision users) out there wondering where they will end up. Unfortunately, many of the good people at Opcode may be gone for good.

Many of the worried users are urging others to help save Vision and OMS. We encourage you to speak out and contact Gibson and their CEO, Henry Juszkiewicz, to ensure that the technologies and products continue. In these days of open-source, who knows - perhaps Vision and OMS could be opened up so that the users themselves would ensure that these technologies are still developed. Maybe not all the rumors are true, but the fact remains that Opcode is wholly owned by Gibson, and it will be up to Gibson to make sure Opcode's products do not die.

For more information, visit their web site at http://www.opcode.com/.

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