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Technology Stocks : Diamond Multimedia (DIMD)

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To: Jonathan Quick who wrote (20)9/10/1996 10:56:00 PM
From: Ernie Onate   of 99
 
Jonathan,

Remember that a majority of the drivers for Diamond's video cards were included with Windows 95 on the CD. The drivers that came from Hercules and #9 were based on the OEM chip driver. They were very slow. They use OEM video chips and silk screen their name on the boards and include some neat utilities. #9 had to develop their own driver for their IMagine 128 since that was their own designed chip.

Matrox and ATI are chip developers. They worked closely with Microsoft to develop Direct X and had the inside track to developing the drivers on this new technology. They were able to create drivers on the very earliest versions of Windows '95 and make modifications as they revved up.

Diamond basically buys an OEM video chip (aka s3, cirrus logic, etc.) places it on a board and builds the hardware up from there. They upgrade the hardware bios and change the mclock settings to PUSH the performance of the chip beyond the OEM spec. They add capacitors and improve the trace layout to eliminate noise or hardware errors. This coupled with the accelerated Diamond enhanced drivers puts the card way up in performance. The Stealth 3D utilizes faster Silicon Magic 40mhz EDO DRAM.

Diamond was slow in putting out 'accelerated' drivers because they had to relearn how to code to a new specification. They had to wait until Direct X was close to being Gold and/or wait for an OEM Direct X compatible driver to modify. Add to that the many different products they have it's not surprising that it would take so long. It doesn't take a marketing genious to figure out that Diamond could not stop development on new products to build drivers for current and older video cards. They had to draw the line at some point.

Ernie
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