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Technology Stocks : Silicon Graphics
SGI 91.75+1.9%Dec 26 9:30 AM EST

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To: Andrew Nierman who wrote (19)1/18/1996 2:00:00 PM
From: benwood   of 199
 
According to EE Times (15 Jan 96), at least some of the Ultra64
processors will be manufactured by NEC, although it will be using
technology licensed from MIPS. I don't know how big a hand NEC
had in creating the special processor. In EE Times, they state,
"Most recently, [NEC] has been ramping production of a version
of the R4300, a MIPS-based processor that Nintendo Corp. will use in
its 64-bit game machine, due out in April."

I don't recall what MIPS processor NEC derived its R4300 from.
Considering that the Seattle Times said recently that only two
cartridges will be released in April and that perhaps 7 will be
available by next Christmas, I expect sales will slowly ramp up and
not be a significant source of revenue for SGI for a while. To me
the important thing is that SGI is making a transition to consumer
electronics and will stand a better chance of competing against
the mass-produced and razor-thin profit margin PCs built by
Dell and Compaq and their ilk as those machines encroach on the
workstation market (the dual Pentium Pros are being shipped by
several companies already, for Windows NT).

Also, SGI has wanted to get into the set-top box market using similar
technology, and this has to give them a good engineering base.

Which reminds me, whatever happened to the Video-on-demand trials
with SGI and Time Warner in Orlando? I haven't heard a word about
it for about a year.
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