Activision....Returns! Message Board

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Technology Stocks : Activision....Returns!

ATVI 94.42

0.0%

Oct 13 5:00 PM EST

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To: Burlitis who wrote (952)	3/11/1998 10:13:00 PM
From: Tom Caruthers	Read Replies (3) of 1992

Alex, Surprising news on Orchid. Usually companies like OEM agreements because they guarantee certain volume purchases of games but the flip side is that the margins are usually less than those achieved at retail. I wish I could give you firm numbers. In anycase, this OEM agreement is unusual because normally the boards ship with established games that have been on the market for a while. For example..Heavy Gear. This allows game companies to get the most punch for their development dollar. Here we have a game that is ready to storm the shelves and this agreement has already sidetracked a sale! (Now you have me thinking about this too now ;) ) The good news is that the board is retailing for $249. Probably $200-225 on the market...That leaves plenty of room to give ATVI a good cut. Do you think it's too late for TDFX? I seem to have missed the boat completely :( Tom

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