04/21/97 7TH LEVEL'S NEW PLATEAU: WAR GAMES

7TH LEVEL'S NEW PLATEAU: WAR GAMES

IN THE CONTINUING BATTLE between games and educational software, chalk up one for the triggermen. Richardson (Tex.) software developer 7th Level Inc. is exiting the education market to concentrate on the already crowded realm of CD-ROM games.
The four-year-old company, which was founded by an eclectic group of concert promoters, rock musicians, and software gurus, has never turned a profit. Its Great Adventure series, programs for kids age 6-9, faced increased competition from CUC International, the Stamford (Conn.)-based mail-order house that acquired educational software leaders such as Knowledge Adventure and Davidson last year. ''There was a faction in the company that felt if we focused all our resources on games, we would be better off,'' says co-founder George D. Grayson, who left 7th Level on Mar. 11 after the board decided to abandon the education market. The company will now concentrate on games, such as Helicops, a combat helicopter simulator, and titles based on the British comedy group Monty Python. Games accounted for 90% of 7th Level's $20.5 million in sales last year. Decent, but still just a tiny part of the $2 billion CD-ROM game market.
EDITED BY PAUL M. ENG
Gary McWilliams