DavidG,
RE: PlayStation
I think Wilf made a good point when he said that the cost of producing PlayStation chips has also decreased. It's a planned thing, no surprises, and he sounded very comfortable with it. He also said that while pricing has bottomed, unit volumes are not only fine, they are in fact running higher than '97.
Each quarter LSI becomes a more sophisticated investment for me. There is a lot more going on here than Sony game chips, and I feel pity for the short-sighted analyst or investor stuck on that product.
LSI is now taking many different avenues toward potentially similar success stories in consumer products; DVD might eventually outshine the PlayStation, and perhaps within a shorter period of time.
And, just look again at the D-FIRE chip to begin volume shipping in mid 1998.
lsilogic.com
And, get an idea of the market for audio from a recent BBRC news release:
>>According to Euromonitor's Strategy 2000 report, the world consumer audio market will exceed $52 billion in sales in 1998. More specific[ly]............the Consumer Electronics Manufacturers Association (CEMA) reported that total U.S. sales of high-end audio was between $1.1 and $1.4 billion in 1997.<<
I plan to take advantage of this flat period to load up on cheap LSI, because I am expecting a very decent 1999.
Maybe T.K. will help me out and quietly do the same.
E! |
