> No, it isn't. Nvidia has had great success in the OEM market and got only 38M in revenue last quarter. The retail market will decline in a large way once all the second generation cards start shipping on the new computers. It will no longer be necessary to purchase a separate additional 3d card in order to accelerate games.
The OEM market will become the company's bread and butter next year, they will also likely make 3dfx a fair bit of money. The high-end products will provide the true high-margin growth. People will buy them because they will provide a new level of graphical experience. Those that it's all about mpixel's per second, and triangles per second are missing the boat.
>Money does not equal a great product. S3 has had the Savage3d under development for a long time (several years), spending twice as much as 3dfx and has produced, IMHO, a mediocre product. The only reason the product is in the same ballpark as the other nextgen cards is because they used the .25u process. R&D is great but needs to produce tangible results.
The reason I invested in 3dfx is because they used their R&D money wisely. The Voodoo Chipset is a superbly elegant piece of work. I expect nothing less than the same from their next generation.
3dfx fundamentaly understands what they need to do, and have a viable strategy to finance themselves there.
>"Making a buck", quick or not, should be the objective of the company. This includes careful expense management.
What's wrong with 3dfx's expense management? They have money in the bank, and a cash settlment from Sega. Why slow down R&D because of a seasonal slowdown, and the fact they got screwed by DIMD? |
