PMFJI, but frankly I was surprised there was no reaction to the graphics card news on 2/10. This is awesome news and am surprised as to why the majority of you discount this "Fundamental", news and one of you specifically states that this is only worth a point or two.
I notice that most on this thread are into TA. I am not, though I do not disregard TA.
IMHO, it has taken the market a couple of days to disseminate the news. Why?
Well, first of all one must be aware of the fact that 3D graphics are driving new "consumer" computer sales and will be of increasing importance. Also, that TDFX is the present leader in consumer/gaming 3D with their Voodoo Graphics chipset. Only recently have their competitors, nVidia specifically, have approached the performance of this chipset which has been out for approximately 18 months. Shortly (March), TDFX is to release their new chipset Voodoo2 which will again raise the 3D graphics bar considerably and further increase their lead over competitors and drive the PC market. TDFX does not manufacture cards just the chipsets.
At present the leading manufacturer of Graphic cards with the Voodoo Graphics chipset is DIMD with their Monster 3D. They have the lion's share of this market which is growing at a considerable rate (please excuse the lack of specific numbers). DIMD has done an excellent job of branding "Monster" and consequently, not too long ago, had a successful rollout of a "Monster Sound" audio card. This is a spatial sound card which gamers love. Consider the following regarding TDFX--taken from the Motley Fool analysis,
"...sales are highly concentrated to only a few companies. Orchid, Diamond Multimedia, and Williams account for 44%, 33% and 11% of sales, respectively, in 1996; and Diamond and Williams accounted for 59% and 15% of revenues during the first quarter of 1997...."
Orchid was the first to market with the Voodoo chipset and IMHO, the acute rise in DIMD's percentage is due to, a) DIMD's marketing clout, b) DIMD's brand recognition, and c) the successful branding of the "Monster" label.
I personally own a Orchid card and have recently (last month) visited my local CompUSA where the Monster 3D was "sold out". I have personally witnessed the growth of 3D in general and Voodoo in particular and never before encountered the Monster 3D to be sold out.
As stated above, TDFX has a new chipset, the Voodoo2. It has already been documented that the performance of the Voodoo2 again raises consumer 3D to a new standard.
There is a huge demand for TDFX' chipsets, for which TDFX has not been able to met. The leading dedicated 3D (Voodoo) card, the Canopus Pure 3D, can only be purchased through the company and has a waiting list. TDFX also has a 2D/3D combo chipset, Rush, which is in great demand as well. The leading card in this category is called "Intense 3D and at the moment I cannot recall the manufacturer. It is not DIMD nor CREAF.
At present CREAF has two 3D offerings, 3D Blaster PCI which utilizes Rendition's "Verit‚"chipset and Graphics Blaster 3D whose chipset I have forgotten and is not denoted on CREAF's web page, and its absence is telling. For those not aware, there has been a 3D and 3dfx revolution in which CREAF has not been a participant, despite this CREAF has done well of late. DIMD itself has gone to profitability this quarter, imho, on the back of the Monster 3D.
NOW, given the increasing demand for 3D graphics in general and Voodoo in particular, the demand for the Voodoo2 is INTENSE and PENT-UP, given the age of the original Voodoo and the nature of gamers and techheads--always in need of the latest and greatest. In fact, there is already pre-selling by many, such as CompUSA, Electronic Boutique, Babagges (Sp?), etc.
3DFX WILL NOT BE ABLE TO MEET DEMAND FOR VOODOO2 just as it cannot meet demand for Voodoo for which there is a (relative) alternative. At present there is no alternative to Voodoo2. Intel's i740 will not be a Voodoo2 competitor. Voodoo2 is a dedicated 3D chipset. The i740 is a combo 2D/3D chipset. TDFX is schedule to bring out their 2D/3D combo solution (Banshee) later in the year.
It had been widely expected by all followers and by all indications that DIMD would be FIRST to market with the Voodoo2 in the form of the Monster 3D2. Given all of the above, I obviously have been following TDFX and not too long ago began to follow DIMD. As already demonstrated with Voodoo, if DIMD is first to market with product they will virtually own the market. Except for three factors,
the first is quite technical in nature, but simply put the Voodoo2 chipset allows the manufacturer to differentiate its product by the amount and configuration of RAM built onto the graphic board which affects the level of performance considerably.
Hardcore gamers who are the first purchasers and frankly define the market, have expressed their desire for the maximum configuration which is 12 megs. DIMD, possibly to their misfortune, has decided and announced a 8 meg configuration with no corresponding 12 meg version.
Second, CREAF has stepped to the 3dfx plate and has WHACKED one, not only "might" they be FIRST to market, but meeting the market with the desired configuration of 12 megs.
Lastly, CREAF is the only manufacturer who comes to mind that has the manufacturing, marketing, and branding clout equal to (and perhaps greater than) DIMD. It would not be surprising to see DIMD become CREAF's Orchid, though DIMD has too much muscle for such an extreme comparison. If DIMD does not respond quickly they will lose the lead with the hardcore gamers and only marketing might save them with the rest of the market.
Again, IMHO, it has taken the market awhile to disseminate all of the above into CREAF's stock price, much of which is not readily apparent unless one has been following 3D/3dfx closely. Off the top of my head, I recall there to only be two analyst covering 3dfx and virtually no institutional investors. Outside of the gamers and techheads nobody knows, yet!!
All of the above is what has brought me back to this thread. I am a Lurker by nature, an Aquarian by birth and speak only when I have something to say. Excuse me if I've said too much.
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boot Magazine Preview of Voodoo2
previews.bootnet.com nlayout&-sortfield=MODDATE&-sortorder=descend&PREVIEW=PREVIEW&-max=10&-reci d=33402&-find
boot Magazine Preview of Intel i740
previews.bootnet.com nlayout&-sortfield=MODDATE&-sortorder=descend&PREVIEW=PREVIEW&-max=10&-reci d=33484&-find |
