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Technology Stocks : ESST-the new beginning.

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To: Steve Reinhardt who wrote (2141)	11/27/1998 1:15:00 PM
From: DiViT	Read Replies (1) of 3493

"It is very interesting that ESS's competitor refers SuperVCD (SVCD) as "Chao Ji VCD(the new VCD format in China)". My friend told me that Chao Ji means super in Chinese" I agree with you Steve, marketing a product in China using the Chinese term is very interesting, indeed. "And ESS' major video competitor busily denies that SVCD/VCD will be their major business while promotes DVD sales as imminent. I think this is why the competitor's stock has been a target for shorting." The shorts in the competitor's stock is currently at an all time low as those statement are being made. So I don't think that's it. The cost to make a DVD player has now drop below what it used to cost to make a VCD player, when they took off. Will be interesting to see if SVCD can continue against DVD. Basically can a China standard compete against a global one? VCD as a China phenomenon did very well, so perhaps SVCD will to. However, VCD didn't have an alternative other than VHS. SVCD has to compete with VCD & DVD. Because of DVD the SVCD/CVD wars are a moot point, and a waste of time. ESS should put their efforts in fixing up their DVD offerings...

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