3DFX Message Board - Msg: 9592812

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Technology Stocks : 3DFX

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To: Patrick Grinsell who wrote (12702)	5/18/1999 3:36:00 PM
From: JAG	of 16960

Diamond and NVDA spent a combined $54 million on R&D in 1998. Not all of the Diamond R&D was graphics as only 78% of their business is graphics and they were also developing the Rio, communications, professional graphics, etc. The annualized R&D run rate for STB and TDFX is $56 million. To me this is the key reason that TDFX may end up the winner even though I truly believe that TNT2 and Voodo3 are currently neck to neck with a slight edge to TNT2 due to the extra features. This is also the reason that NVDA will be forced to merge with either Dimd or Creaf if they want to be a long term player.

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