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|Headquarters||Mountain View, California, United States|
General Magic was a company cofounded by Bill Atkinson, Andy Hertzfeld and Marc Porat that developed a new kind of handheld communications device they called a "personal intelligent communicator", which was a PDA precursor that stressed communications.
Apple project and spinoff (1989)
The original project started in 1989 within Apple Computer, when Marc Porat convinced Apple's CEO at the time John Sculley that the next generation of computing would require a partnership of computer, communications and consumer electronics companies to cooperate. Known as the Paradigm project, the project ran for some time within Apple, but management remained generally uninterested and the team struggled for resources. Eventually they approached Sculley with the idea of spinning off the group as a separate company, which occurred in May 1990. It was founded by Marc Porat, Andy Hertzfeld, and Bill Atkinson. Porat, Hertzfeld and Atkinson were soon joined at General Magic by Susan Kare, and most of Apple's Mac 7 team, including Bruce Leak, Darin Adler and Phil Goldman.
During the early 1990s, Joanna Hoffman was vice president of Marketing. In 1990, Porat wrote the following note to Sculley: "A tiny computer, a phone, a very personal object . . . It must be beautiful. It must offer the kind of personal satisfaction that a fine piece of jewelry brings. It will have a perceived value even when it’s not being used... Once you use it you won’t be able to live without it."
Early years (1992-1993)
The company initially operated in nearly-complete secrecy. By 1992, some of the world's largest electronics corporations, including Sony, Motorola, Matsushita, Philips and AT&T Corporation were partners and investors in General Magic, creating significant buzz in the industry. Sculley, George Fisher (the CEO of Motorola), Norio Ogha (the chairman and president of Sony) and Victor Pelsen (the Chairman of Global Operations at AT&T) became members of the company's board of directors.
General Magic announced its intentions to build an anytime, anywhere communications device and an agent-based network to host it—well before either was ready to ship—at a public event in New York in 1993 By 1994, the "General Magic Alliance" of cross-industry partners had expanded to 16 global telecommunications and consumer electronics companies, including Cable & Wireless, France Telecom, NTT, Northern Telecom, Toshiba, Oki, Sanyo, Mitsubishi and Fujitsu. Each of the so-called "Founding Partners" invested up to $6M in the company and named a senior executive to the company's "Founding Partner's Council."
In 1992-1993, while Sculley was still a director of General Magic, Apple entered the consumer electronics market with a poorly-received project that became the Apple Newton. Newton, originally designed as a tablet with no communications capabilities, took market interest from General Magic.
The company launched an IPO on NASDAQ in February 1995 The stock doubled after its IP. General Magic raised $96 million in the IPO, and a total of $200 million from 16 different investors. The stock price surged on the first day, closing at over $26 per share after opening at $32.
Portico service (1996)
Dr. Steve Markman was hired to run the company in 1996, and he hired Kevin Surace to head up a new telephony group. This new team of 60-70 people set out to create a voice recognition-based personal assistant service that would be as close to human interaction as possible. The first service delivered was Portico (was code named Serengeti in development), and the interface was called Mary, named after Mary McDonald-Lewis, who voiced Portico, Serengeti and GM's later version, OnStar. Mary could understand some 20 million English phrases and speak several thousand different phrases herself (in addition to the Text to Speech engine). Portico synchronized to popular devices such as the Palm Connected Organizer and Microsoft Outlook and handled voicemail, call forwarding, email, calendar etc., all through the user's own personal 800 number.
The system was also scaled back and sold through many partners including Quest and Excite. At its peak, the system supported approximately 2.5 million users.
General Magic is the first company to have employed a large number of linguists to fine tune the human interaction and make it seem very real. "Mary" even had multiple responses for phrases spoken by the user so the user would often hear something slightly different from her. General Magic (inventors Kevin Surace, George White and others) applied for and were awarded several key patents in the voice recognition and artificial personality arena.
According to Fast Company, the company's original idea was "practically, dead," with people not buying General Magic devices in quantity.
In 1997 Steve Markman also brought on board Linda Hayes as Chief Marketing Officer responsible for relaunching the New General Magic corporate brand, as well as launching Portico. Hayes in turn hired an entire new marketing team whose marketing strategy and launching of Portico drove the Company’s stock price from $1 in 1997 to $18 in 2000.
myTalk product (1999)
In 1999 the Marketing Team developed a separate consumer product called MyTalk. Created by Kevin Wray, the MyTalk product was a success and went on to win the ComputerWorld Smithsonian Award for the first commercially successful voice recognition consumer product. Today MyTalk is listed in the permanent Smithsonian Museum collection. Because of the product’s momentum the intent was to spin off Hayes’ group with Wray leading the product management. However, because of failure to agree on technology licensing terms, the spin-off stalled. By the end of 2000, most of the marketing team had moved on to other companies.
While Portico ran its voice portal business, the original handheld group was spun off in 1998 as Icras. The new company sold the Magic Cap OS as hardware named DataRover. The company focused on vertical market systems.
General Magic announced a major licensing deal with Microsoft in March 1998, including an investment by Microsoft. This gave Microsoft access to certain intellectual property, and gave General Magic the ability to work closer in integrating Portico with Microsoft products. It also brought much needed recognition to General Magic.
The OnStar Virtual Advisor was developed at this time as well for General Motors. The service is offered in many cars and trucks free for the first year of ownership. Like Portico before it, the service can handle email and certain call requests. It has a much more limited vocabulary, but still uses the original "Mary" as the voice interface.
By 1999, the company's stock had plunged significantly, with Forbes attributing the drop to "losses, layoffs and missed projections."
Most of the management that was involved in bringing Portico to market left by early 2000 to pursue other interests with Internet startups. A new team was brought in led by Kathleen Layton. The new team took the company in the direction of turning its voice services into enterprise software offerings. The company announced it would cease operations on September 18, 2002. The company was liquidated in 2004. The OnStar assets were turned over to EDS to run for General Motors. The patents were auctioned by the court, and mostly purchased by Paul Allen.
General Magic's main product was Magic Cap, an operating system.
The basic idea behind the General Magic system was to distribute the computing load of a typical user's tasks across many machines in the network. The company believed that handhelds would always be lacking power in comparison to the desktops and servers they would communicate with, so that making a clone of a desktop machine in a handheld form would be doomed to fail. Instead, the devices would be based on a fairly minimal operating system known as Magic Cap, which is essentially a UI and the most basic services needed to run the machine. The UI is based on a "rooms" metaphor; for example, e-mail and an address book can be found in the office, and games might be found in a living room.
User applications were generally written in a variant of the C programming language with object oriented extensions, calling the set of objects that made up the Magic Cap OS. These programs are installed in packages that are quickly loaded and unloaded as needed in order to conserve space. These applications, and interactions between them, can be scripted using the utility language, Magic Script.
Programs can also be written in the new Telescript programming language, which makes communications a first-class primitive of the language. Telescript is compiled into a cross-platform bytecode in much the same fashion as the Java programming language, but is able to migrate running processes between virtual machines. This idea defined a robust agent that could serialize its code, data, and state, deploy itself across one or more remote computers, and resume execution at the next instruction with all state intact. For instance, a user might start a Telescript application on their handheld that purchased movie tickets; when they had complete the basic input, the agent would migrate itself over the cell phone network and begin running on the movie theatre's server. There, the migrated user agent would interact with other agents running on the server to perform the actual purchase. The server would complete the transaction, fill out results data in the original agent, and migrate it back to the user's device. The agent might perform days- or weeks-long tasks after the client disconnected, and dispatch updates periodically to the client. The user-end software was tasked primarily with request and display.
The developers saw a time when Telescript application engines would be widely available across various communications systems, first the cell phone networks and desktop machines, and later the internet. Eventually Telescript would become ubiquitous, and interconnected Telescript engines would form a "Telescript Cloud" across which mobile applications could execute. Stationary, long-lived processes called "places" would run in the cloud permanently and provide services to agents which would "go" from one place to another to access services, collect information, and eventually dispatch results back to the user.
Sony and Motorola introduced Magic Cap devices in late 1994, based on the Motorola 68300 Dragon microprocessor. Unlike the Newton and other PDAs being introduced at the same time, the Magic Cap system did not rely on handwriting recognition, which meant it was almost an afterthought in terms of media coverage when Apple introduced the Newton. From that point on every PDA discussion was about the quality of the recognition, and the Magic Cap systems were basically ignored.
The systems also suffered from being introduced with no real infrastructure behind them. Since the cell carriers were not yet running any Telescript services, the entire distributed system was reduced to running applications on the handheld. Further, the World Wide Web and Mosaic were gaining rapid acceptance, and met users' needs well enough to obviate demand for General Magic's walled-garden solutions. Partners ended production of Magic Cap devices by 1997.
The company achieved many technical breakthroughs, including software modems (eliminating the need for modem chips), small touchscreens and touchscreen controller ASICs, highly integrated systems-on-a-chip designs for its partners' devices, rich multimedia email, networked games, streaming television, and early versions of e-commerce.
Many Silicon Valley luminaries worked at General Magic either at the beginning or early on in their careers, including Tony Fadell, Andy Rubin, Andy Hertzfeld, Pierre Omidyar, Kevin Surace, Marc Porat, Kevin Lynch, Steve Perlman, Phil Godman, Peter Nieh, and Marco DeMiroz. Megan Smith, and John Giannandrea.
According to former General Magic employee Marco DeMiroz, it was the "Fairchild [Semiconductor] of the 90s." Magic is generally seen as the Fairchild of mobile, social and ecommerce—the fountain from which much of today's smartphone and online communication and commerce technology sprang, just as Fairchild Semiconductor spawned Intel, National Semiconductor, AMD and the rest of the Valley's semiconductor industry.
A film about the startup opened the SFFilm Festival in San Francisco on November 3, 2018. As the founders hired a film-maker to document their development process, the film includes original 1990s footage of General Magic's offices.
- Levy, Steven (April 1994). "Bill and Andy's Excellent Adventure II". Wired (2.04). Retrieved 2015-02-10.
- Kanellos, Michael (2002-09-18). "General Magic calls its quits". CNET. Retrieved 2015-02-10.
- Kanellos, Michael (2011-09-18). "General Magic: The Most Important Dead Company in Silicon Valley?". Forbes. Retrieved 2015-02-10.
- Mark Sullivan (2018). ""General Magic" captures the legendary Apple offshoot that foresaw the mobile revolution". Fast Company.
- Braswell, Sean. "In 1993, This Company Almost Invented the iPhone — and It Wasn't Apple". OZY. Retrieved 2018-02-23.
- Hertzfeld, Andy (2005). Revolution in the Valley: The Insanely Great Story of How the MAC was Made. Oreilly. p. xxii.
- Michael Kanellos (September 18, 2011). "General Magic: The Most Important Dead Company in Silicon Valley?". Forbes.
- "Before Apple's iPhone There Was General Magic". Barron's. July 13, 2018.
- "SCREENINGS & EVENTS - Doc Stories 2018". SFilm.
- Adi Robertson (April 22, 2018). "General Magic is a nostalgic film about the '90s startup that imagined the smartphone". The Verge.