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Technology Stocks : Silicon Graphics, Inc. (SGI)

SGI 92.66

-0.6%

Dec 2 3:59 PM EST

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To: Jim Davison who wrote (3859)	12/21/1997 11:41:00 AM
From: Tim Mak	Read Replies (1) of 14451

Jim, thanks for the CNET link. The last paragraph of the article is interesting. It reads: "One of the interesting aspects of the deal is that Microsoft will control this technology. SGI says it has never controlled OpenGL anyways and had left that up to a review board. But now it will no longer be controlled by a review board, it will be controlled by Microsoft," Seymour [an IDC Research analyst] said. "Because of this arrangement, SGI can be squeezed out. Right now API will support Unix and NT. Microsoft may later say it will not support API for Unix." Two questions: (1) Is this the case? (2) Does it mean Microsoft will also control how SGI and ISV develop software for Nintendo? ... Sounds unreal, and one hopes SGI is not that stupid?! Will someone in the know help clarify the pros and cons, the gain and loss of leverage, etc. for SGI on this deal. Thanks.

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