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Technology Stocks : C-Cube
CUBE 35.69-1.7%3:02 PM EST
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To: K. Law who wrote (19184)7/24/1997 11:56:00 AM
From: Steve Reinhardt   of 50808
 
Thanks for your concern.

The C-Cube trick has been widely circulated in VCD manufacturers in March, 1997 by C-Cube's travelling salesmen demonstrating VCD player (using ESST's older version of firmware) which can not play Deng Shiao Ping's memorial VCD in the very first few frames with abnormal artifacts. It was determined that particular VCD has been using C-Cube's MPEG1 encoder with different firmware to specifically disrupt ESS's VCD chip sales in China. That was quickly nudged by the ESST's travelling salesmen demo-ing VCD players (using ESST's updated version of firmware) which can play Deng Shiao Ping's memorial VCD correctly. The issues rested.

Neither companies would confirm or deny these incidences. Because Cube does not want to be seen as a company playing dirty tricks and ESST does not to amplify the fact that they do not possess MPEG1 encoding technology.

Now ESST still poses as the greatest threat to C-Cube in the VCD and DVD decoding component market segment. That is why there is tremendous amount of ESS bashes/bashers in both the Cube and ESST threads.

But if you ask any ESSTiers, they think the Japan Inc. as the real long term competitions in the VCD and DVD decoder market but not C-Cube. I think Cube has great dominance in the MPEG 1 and MPEG 2 encoding market as well as some system businesses that the subsidiary Divicom brought in. The Encoding market is being threatened by Innovocom, Zapex, etc.. and the system business is threathened by larger corporations. I think Cube has a long and winding battle in front of AB.
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