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Technology Stocks : Diamond Multimedia

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To: lml who wrote (3395)2/19/1998 6:28:00 AM
From: John Coltrane  Read Replies (1) of 4679
 
Thanks again for the link.

While DIMD is not actually taking a "survey", the "fact" that on/or about 2/11 (the day after CREAF's announcement) DIMD execs were having a meeting to discuss their response to CREAF confirms, that DIMD was/is completely unaware of CREAF's intentions/strategy with regard to VD2/3D (IMO, they just didn't see CREAF entering the market as strongly has they are (big mistake). Though I've been through this before, I must re-emphasize:

It is not simply that a competitor is producing a 12 meg board while DIMD is/was not. I'm confident that this was expected, but by much lessor producers.

IMO, DIMD was fully prepared to use its considerable marketing muscle to further brand the Voodoo nomiker with their "Monster" label, with intention to virtually make the two appear synonymous. The majority of the public (especially the newbies entering computerdom with those $1,000 PCs wouldn't recognize nor comprehend the facts of the matter. They'd want Voodoo and Voodoo would mean Monster.

The evidence suggests, that in DIMD's determination only the techies and seriously hard-core gamers would be concerned with memory, megabytes, textures and the like in choosing their boards and they're only a small segment of the overall 3D/Gaming market. On the face of it one would have to agree.

Thus speaks the 8 meg only decision, the techies and hard-core gamer segment (12 meg lusters) was fully conceded to lessor players and also I presume the thinking was--besides these guys won't wait they'll purchase the first boards out period and our margins will be nice and large. What I feel has been DIMD's failure is in MISUNDERSTANDING the gaming/techie INFLUENCE on the greater market. They are the leaders and definers of the market.

This strategy has been completely blown out of the water. BOOM!

What's got them shaking is that CREAF has equal and/or better capabilities to do exactly the same which none of the other competitors have. CREAF is at this moment completely outmaneuvering DIMD on all fronts. IMHO CREAF intends upon TAKING the market as completely as they can. Look at the facts:

1) CREAF made announcement to market VD2 like most others, but not their intention to be first to market. This is no coincidence.

2) CREAF apparently confidentially secured agreements with 3Dfx for what I assume to be a secure supply (this remains to be seen as VD2 will be in great demand, but in short supply) and "exclusive" use of the Voodoo2 nomiker on their packaging. Infreakincredible.

3) CREAF's willingness to concede to whatever demands 3Dfx had in order to secure the above, indicates PURPOSE, as does their decision to go with 3Dfx' reference design and drivers. Being first was important and by design.

4) While all eyes were upon DIMD, CREAF assigned the necessary resources to get their product to market FIRST, seemingly irregardless to cost and by all indication will accomplish their goal. (There was a post from the Yahoo board from Sim cross-posted to either this or the Creative board outlining the efforts CREAF has made. If someone has this could you email or post it to me, thanks.)

DIMD apparently never expected a competitor of relatively equal MARKETING and MANUFACTURER resources to enter this market and surely not one with the apparent guile CREAF has shown.

BOOM!

Sorry, I'm a gamer at heart.
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