August is getting to be that most annoying month in which big, big changes take place in -- or perhaps to -- the hobby industry. Just as stuff hit the fan last August when Avalon announced its sale, this August it is the announced sale of three of the nations largest (and 2 of the best) hobby distributors to a large entertainment conglomerate. Get ready for the aftershocks.

What news we have is at this point very sketchy. Distributor personnel are pretty tight lipped, perhaps from being as stunned as we are. The party line is, of course, that this is progress. But you can read a short press report yourself at http://cbs.marketwatch.com/archive/19990819 /news/current/imgk.htx. Here is an email notice from one of the 3 distributors involved:

Dear Retailers:

Zocchi Distributing, Inc., Berkeley-Top Line, Inc., Alliance Games Distribution, Inc., and Entertainment Network, Inc., have agreed in Principle to merge their respective businesses. We believe that as a group we will be better able to provide a level of service that we cannot match separately.

Each of the four companies has product lines and services that the others do not. As one we will be able to provide you with a greater range of products. In fact, an important goal of the merger is to bring an entirely new dynamic to our industry. en is a developer of on-line games and CD-Rom titles. They believe that business to business e-commerce is a critical yet untapped strategy, and they want to use it to bring their products to our market. They are not an internet retailer and we want to make it very clear that we will not sell directly to consumers. What we will do is introduce some exciting new concepts in marketing and distribution that could bring the best of the high tech world into your stores. Electronic gaming, virtual warehousing, internet marketing, and LAN based gaming are a few of the possibilities.

The bottom line is that through this merger we are going to be in a better position to maintain the service and selection you expect from us. In an industry dominated by specialty retailers and dependent on small manufacturers with great new ideas, we believe that a three-tiered business structure is essential. We truly appreciate and value your business, and we intend to earn your continued loyalty well into the future.