Ralph,
Most of us who have been on this thread since inception, have heard arguments such as yours over and over again ad nauseum.
First, the argument that video chips will ultimately all be integrated onto the motherboard is ludicrous. Video technology moves too rapidly in order for this to be feasible. Very few OEMs integrate video onto the motherboard for this reason, since the risk of obsolescence is far too great. If it were feasible, Diamond, ATI, Matrox, etc. would all have been put out of business years ago.
Second, the argument that quality and performance are immaterial and price is the only criterion customers use to make purchasing decisions is again ludicrous. If this were the case, S3 would be THE leader in 3D with the original Virge chip. Similarly, why isn't Intel out of business by now? AMD and Cyrix have cheaper processors that run the same software.
Maybe instead of learning from the mistakes of others, TDFX has learned from the success of others. By all accounts, Intels branding strategy, which they started in 1989, has been a tremendous success. Do you think the "Intel Inside" logos are simply for decoration? Are the "3dfx" logos on many of the game boxes simply for decoration? I think not.
One thing you are right about though. You personally should not hold this stock for too long. If you are not comfortable about your investment decision, then by all means, close your position.
Good luck,
Ryan |
