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Technology Stocks : Neomagic Corp. (NMGC)
NMGC 0.01300.0%Nov 21 9:30 AM EST

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To: Mani1 who wrote (3371)10/27/1999 12:22:00 AM
From: Mani1  Read Replies (3) of 3645
 
ATI readies Rage 128-based mobile part

theregister.co.uk

ATI has begun sampling its next-generation notebook-oriented graphics accelerator,
based on its Rage 128 Pro chip.

The Rage Mobility 128 is due to ship in volume early next year and will be, in the
company's words, the fastest notebook accelerator chip available throughout 2000.

A proud boast, to be sure. ATI backs it up with the claim that the chip runs 60 per cent
and 20 per cent faster than rival products in 3D and 2D tasks, respectively.

ATI needs to stress the speed advantage, given that its strategy centres on the idea
that most notebooks are high-end products, so both buyers and vendors want
high-performance systems. That's very different from the desktop arena, where 3D
acceleration has become just one more commodity.

The high end equals, of course, high margins, and ATI is opting for high-price parts,
which again requires it to play the performance card. ATI will offer the Rage Mobility
128 for around $45 -- rather higher than today's average of $21, according to EE
Times.

Whether ATI can achieve that kind of price point, and maintain its performance claims,
will depend on its rivals, who have already scented the profits to be made in the
notebook market. ATI's old enemy, S3, is active this arena, and its Savage MX will be
six months old by the time the Rage Mobility 128 ships, and in the graphics business,
that means it's ready for replacement.

And market leader NeoMagic is unlikely to rest on its laurels, and has a high-end
replacement for its MagicGraph 128XD part already in the works. ©
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