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Technology Stocks : Silicon Graphics, Inc. (SGI)

SGI 93.81

-0.5%

Dec 12 3:59 PM EST

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To: Eli Lauris who wrote (621)	1/13/1997 7:11:00 AM
From: Jeff Maresh	of 14451

Eli - There is a lot of cost involved with reengineering a complex chipset like the guts of and Onyx to put it onto a single chip (N64). Even if SGI doesn't make a dime on the N64, Nintendo and cohorts will have paid for SGI's R&D effort to complete the conversion which is valuable for other micro projects. What other projects? How about putting the chip on a standard VGA card for example? This is strictly my own speculation but other companies are already putting Open GL chips on VGA cards and higher performing cards will be on the market this year. There are also a lot of other possible applications like internet appliances. In addition, it may help SGI get better brand recognition outside of Hollyweird.

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