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Technology Stocks : 3DFX
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To: Patrick Grinsell who wrote (13671)7/12/1999 8:41:00 PM
From: Michael G. Potter  Read Replies (1) of 16960
 
I've noted quite a few comments on other message boards the last few days about Voodoo2 sales. Everyone seems to think that all the Voodoo2 inventory was written off. That isn't what I remember. The excess inventory related to the Diamond Voodoo 1.5 was written off but not all of it.

Voodoo2's are cheaper because memory prices are way down and there are not two layers of profit (chipmaker then boardmaker) involved. Plus they're older technology and cannot command as high a price. I'm sure that 3dfx is making money on the sales, just not that high of a margin. They are not "pure profit".

Michael
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