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Technology Stocks : Creative Labs (CREAF)

CREAF 0.440

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Dec 11 9:30 AM EST

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To: Jon Tara who wrote (9182)	1/29/1998 9:57:00 AM
From: Chris Sholler	of 13925

CREAF bought Ensoniq to fill a big whole in their own line-up so I doubt you'll see them kill of the products. PCI audio is no more of a monolithic market than ISA audio. There are multiple segments (i.e. audio quality) to the market. CREAF's 8008 chip and AWE64 boards are "mid-range" products with the new 10K1 part ("SB Live") the new high end. What they lacked was an entry level PCI part with very low cost that would appeal to OEMs, and along came Ensoniq. This part will never have the audio quality of the 8008 or 10K1, but the OEMs don't care; it meets their criteria (SB compatible, PCI, inexpensive). If you want higher quality audio with your new PC they'll gladly supply it via an AWE64 or Live board. Lastly, the Opti acquisition puts them into another area they've never been able to address: the portable market.

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