As most Outlaws know, we have been working with Inkel to jointly develop a single hardware/software platform to be sold by Sherwood Newcastle as their R-972 audio/video receiver and, with substantial modifications, by Outlaw Audio as the Model 997 surround processor. Now that the R-972 is finally on the market, it is time to update you on the status of that project.

To get right to the point, due to the current state of the R-972 and the inability of Inkel to properly implement our required changes, it is with great regret that we must inform you that we have cancelled the Model 997.

We know that this will be extremely disappointing to those who have been waiting patiently for this product. That is equally true for us at Outlaw. With interest in this product from thousands of customers, it is obvious that this will result in lost sales. However, we feel strongly that under the circumstances we have made the right decision.

The Reasons Why

To better understand the reasons behind this decision, we would like to share some of the details that brought us to this conclusion.

• Half way through the development of this platform, Inkel switched the video processor to the Reon solution. While this move improved the performance of the unit, it caused other side effects and delayed completion of the platform by almost nine months.
• Inkel's implementation of the Trinnov Optimizer Room Correction System also took longer than expected, pushing all aspects of the schedule back even farther.
• We have been testing pre-production beta samples for at least five months, but the inability of Inkel to get both the underlying platform to operate to our specifications and to have the Outlaw-specific changes made properly caused delays well beyond our initial production start date.
• HDMI 1.4 and 3D have come to market with a speed that is considerably quicker than anyone in the industry had anticipated. The demand for compatibility with these key technologies and the fact that we could not offer them in our new processor put the final nail in the Model 997's coffin. Knowing that many of you have waited for the Model 997 as your first HDMI processor, we could not introduce it with anything less than the absolute state-of-the-art in digital connectivity. We simply would not put you in a position of investing in a processor only to find out later that you needed to replace it with a new model when you moved to 3-D.
• The time we have invested on the Model 997 has diverted our attention from the other products we have in development. With many of those products reaching a critical stage, we had to make a decision on where to invest our resources. The payback on spending any further time or effort on the Model 997, which in our opinion was still not ready for production, was no longer there.

When considering these issues, compounded with several others, it became clear that the Model 997 platform design no longer met your needs or ours. We delayed this decision (some might say even longer than we should have) in the hope that things would work out favorably, but that was not to be. Again, despite the realization that this would be a disappointment to the many Outlaws who have been waiting patiently, we felt that even if the Model 997 was fully debugged and ready for production, it is now past the point where we could sell this processor as it stands. It would just be too far behind the curve the moment it was released.

What Happens Now?

We know that our decision raises many questions, so we'll answer some of them here and follow up with additional details as we move forward.

Most importantly, we are firmly committed to offering surround sound processors. Before the end of the year we will introduce a new product to take the place in our line-up that the Model 997 would have occupied. In reality, this new model, which we have been planning for some time, was originally intended to replace the Model 997 when that product came to the end of its life.

Given our experience with the Model 997 project, it is important to emphasize that our new flagship processor will NOT be derived from an existing platform. It will be an Outlaw exclusive design, built from the ground up to our own specifications and manufactured for us by a well respected consumer electronics manufacturer. By taking total control of this new model we are assured that it will meet our highest standards for performance and product quality.

Now that we no longer have the diversion of the Model 997, we are totally focused on the new product, and we're turning up the heat on this project. As an example of the speed with which we are proceeding, our engineering teams have already completed the design for the 3D compatible, HDMI 1.4 video board. The chips needed to build this board will arrive before the end of March.

To give you a taste of what this product will deliver, here are some of the top level features for what we have code-named the Outlaw Model 998:

• Multiple 3D-Ready, HDMI 1.4 inputs and outputs, including a front panel jack for connection to digital cameras and camcorders.
• On the audio side, Dolby Volume, Dolby PLIIz, high-performance DACs and balanced audio outputs.
• Also on the audio side, our commitment to the Trinnov Optimizer has not changed. We have heard and evaluated Trinnov and assure you that it is the real deal: far ahead of any room correction system we have ever heard, at any price. With this new product, we will implement Trinnov so that it works the way it is meant to be used - and heard! Trinnov is fully on-board with our plan, and they are now exchanging details with our engineering teams.
• On the video side, there will be state-of-the-art video processing and scaling when you want it, and full bypass when you don't. The interface and menu system will be straightforward, easy to use and powerful, all at the same time.
• Direct USB software upgradeability without the need for direct connection to a computer or the need for any loader programs. You'll simply download the new software to a USB drive when needed, plug it into the front panel, and the processor will take it from there.

Barring any unforeseen complications or component price increases, this new processor will be close to the price range of the Model 997. It will be hundreds, if not thousands, of dollars lower than anything even remotely like it. And yes, the $200 credit for past Outlaw processor customers will still be valid on this new unit. When you see and hear the video and audio performance of this processor and use its flexible but easy operation and interface, we're confident that you'll be as excited as we are about our new processor.

Lest anyone have any doubt about our commitment to this product, we invite you to CLICK HERE to take a sneak peak at the preliminary front panel design.

Finally, you might ask where this leaves us in the next few months. We have a number of great new products in the works, along with some exciting new partnerships that will enable you to upgrade virtually every aspect of your home entertainment system. Stay tuned for more information in the weeks and months ahead.

Thank you in advance for understanding the reasoning behind this very tough decision. While it pushes our new processor back a bit further than we'd like, the end result will be an all-new product that better suits everyone's long term needs. More than ever, our new surround processor and the other products we have in the pipeline for 2010 will make Outlaw Audio the one place where "The best values in Home Theater are just a mouse click away.™"


Best regards,
The Outlaws