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Technology Stocks : 3DFX "the" Video Chip Maker
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To: Don Westermeyer who wrote (22)6/26/1997 1:56:00 AM
From: Ernie Onate   of 70
 
Hi Don,

You state some very interesting points. I have a bit to add to each of your comments:

1. Things will get pretty competetive in this market. For instance STB will be making a 2D/3D board that is reportedly much faster and at a lot less cost.

This is a definite concern for the long term of TDFX. STB as well as DIMD are looking at 2D/3D board solutions from Rendition, Trident, and NVidia. In fact price points are supposedly in the sub $200 range. Early analysis on the next gen chip offerings prove that the 3D performance is equal or better to the current Voodoo chip while adding extremely faxt 2D acceleration. This all in on combo is going to be major competitiion

2. There is not cost effective (less than $200) 2D/3D board that uses the 3Dfx chipset. The chipset will not be used via OEM until that happens. Hopefully this will change in the near future.

There is a 2D/3D combo board that utilitzes both the Alliance AT24 chip (2D) and the TDFX Voodoo II. There is no speed enhancement on the 3D side.

One major difference between the Voodoo and the Voodoo II is that the latter will allow you to have full 3D acceleration in a window. The 'original' Voodoo was limited to only full screen video acceleration. Nothing major just a minor limitation. I do know that the 3D acceleration for the voodoo II in a windowed mode is much slower while the full screen 3D acceleration remains the same.

Compaq was looking at adding a 3DFX solution on some of their systems but it was unclear as to who was going to supply them. (Orchid or Diamond)

3. Although I'm sure 3Dfx is planning a 'better' chipset, there is no indication when this will be done.

The latest offerings from 3DFx since the original Voodoo is the Voodoo II. The next gen chip for them will be the Banshi which is slated for early next year. This 2d/3d combo is supposedly going to move them to the next level. This is a good indicator as to how strong they will be in the Graphics market place

I'm watching this stock closely myself. I'm hoping that once the sell off of the IPO shares begins, I will be there to buy below the IPO price.

-Ernie
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