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Technology Stocks : Silicon Graphics, Inc. (SGI)

SGI 92.99

+1.6%

3:59 PM EST

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To: Jeff Maresh who wrote (994)	4/5/1997 4:30:00 PM
From: Bill Fischofer	of 14451

Price/performance The real question for SGI is can they keep ahead of the Wintel price/performance curve. I was visiting Epcot Center at Disneyworld over Easter and SGI had a Virtual Reality demo in one of the pavillions. Frankly given the millions of dollars of hardware the presenter was pointing out (Onyx and Cray), the result was far from impressive. The demo consisted of a ski simulator with the "skier" wearing sensors which allowed virtual ski poles to be sensed. The computer "read" the positions and projected a scene of a skiier on a large screen for the audience. The graphics were OK but not anything close to the sort of photorealism one might expect with an 8-figure hardware budget. I have no idea how state of the art this demo is considered but I wonder how far ahead SGI really is these days. Certainly there will always be a money-is-no-object niche for those who require top performance regardless of cost but that sector will become an ever-shrinking percentage of the total pie over time. BTW, it is precisely because everyone will be bracing themselves for a replay of 1987 that it won't happen. Expect lots of scary headlines as that 10th anniversary approaches, though.

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