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Technology Stocks : 3DFX

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To: Ralph Bergmann who wrote (1450)1/29/1998 11:34:00 PM
From: Marketeer  Read Replies (2) of 16960
 
3Dfx's Prospect

Ralph and all,

I used to share the same belief regarding 3Dfx's longevity and staying power based on their add-on approach. I'd take a good 2D/3D solution over 3D add-on any day, and was an early adopter of S3's Virge offering. (Boy, was I disappointed!) I didn't think proprietary API like Glide would succeed in the presence of Microsoft's DirectX.

Several things changed my mind since. First of all, Glide support seems to be increasing by leaps and bound. Much more than I ever imagined possible. Glide-enhanced games ARE the primary reason for 3Dfx's good fortune. They attract buyers, period! I own two STB NVidia-based Velocity 128, and I can't wait for the VooDoo 2. I don't consider myself to be a hardcore gamer by any means, but I do enjoy eye candies, especially 3D's. Whether 3Dfx can keep up and further entice the developers depends largely on their ability to deliver ever faster, more feature-rich hardware with native API and to expand into the mainstream market. The preponderance of DirectX and the emergence of OpenGL in Win95 will challenge 3Dfx's proprietary approach, but both factors are not unassailable. The key will be their speed of delivering superior product and expanding their marketshare. Blitzkrieg baby!

Lastly, there is Intel. With their i740, they seem poised to take the graphics chip market by storm. I presume they will hold the price advantage, but what about performance? For 1998, they could at best assume the combined roles of both S3 and NVidia - "low cost" supplier of reasonably GOOD 2D/3D solution. Bear in mind though how Intel prices their Pentiums in relation to AMD and Cyrix CPU(s). This is where Banshee will run into the Maginot Line, seemingly armor-proof. But Glide support may very well provide 3Dfx with the panzer divisions it needs. To race to Paris successfully, Banshee must AT LEAST provide good 2D and higher than VooDoo 3D performance and sell for comparable market price.

Are you a believer? I am cautiously becoming more of one everyday. There are RISKS! Everyone should know that. In the meantime, I am looking to buy back in after selling yesterday. Down, down, I say! I love those MM and the uncertainties :)
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