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Strategies & Market Trends : Value Investing

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To: Shane M who wrote (5081)	9/29/1998 1:15:00 AM
From: Alex Greenland	Read Replies (1) of 78634

Re: CREAF The danger for creative does not come from Intel but from Microsoft. Back in the days of dos and Win3.X there was no original standard for audio built into the operating system. This meant that anyone who made a sound card had to come up with there own way to process sound. During that time Creative made a name for itself with the best and most reliable system and that system slowly became a standard. Check on an old game and it will specify Sounblaster or Adlib compatible sound card required. If you look on games today you see that it is just a sound card that is required, or if there is a standard it is Direct Sound or Direct3d. Direct Sound and Direct3d are standards built into Win95/98, therefore Creative has lost its position as a standard and whatever licensing royalties they may have recieved in the past. They are therefore losing market share esp in the OEM business. However that being said their new Live sound card is impressive. Also they still have a mind share for old computer users like me, but that is a shrinking minority so they now have to compete on quality and price... JMHO Alex G.

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