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Technology Stocks : Silicon Graphics, Inc. (SGI)
SGI 92.66-0.6%3:59 PM EST

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To: John M. Zulauf who wrote (3472)11/6/1997 7:33:00 PM
From: vincent bilotta  Read Replies (1) of 14451
 
John, do you think SGI can maintain two different pricing structures? today's 20% cut in the Octane's price (more if you have old 4D 210 endtables to get rid of) gets us a step closer to parity with mass market boxes. the sucess of SGI's NT box is mostly going to be based on how intense the enthusism and commitment of those selling it are. will it be two organisations dissing each other's product? too dumb/ too expensive? or like some past situations where the vested interest of the salesman made him push the big commission item?

>Moore's law has caught up with them, and now what once could be done >only for $100,000+ can be done for ~ $5,000. A that price point, the >masses get involved, masses of buyers, and masses of ISV's -- and those masses have chosen NT

is the real issue here detoxing from being on the wrong end of Moore's Law? weather or not NT was in the cards, wouldn't SGI have to recover from it's resentment against these apparent natural forces that make all this stuff more accessable? could they get ahead of the curve by building a Reality Monster for the masses? instead of $2M prototypes waiting for fab by Sony as a handheld, couldn't SGI, itself accelerate the UGSI (unbeleiveably gigantic scale integration) and in the process make a bundle? i mean, if SGI's already headed straight to hell (shopping malls) why not make a scene? can one be a little bit comodity?
vincent
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