A two dimensional computer simulation model of the magnetic recording process has been, developed to assess the fundamental properties of perpendicular magnetic recording. It was found that vertical anisotropy media are well suited to abrupt and closely spaced magnetic transitions. The demagnetizing fields support short transitions in the perpendicular mode as opposed to degrading transitions in the longitudinal mode. However, gapped heads may have difficulty in delivering high intensity vertical fields to saturate the medium. Novel write head designs might be required.