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Technology Stocks : 3DFX

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To: Patrick Grinsell who wrote (9486)12/10/1998 1:50:00 PM
From: Eric Howard  Read Replies (1) of 16960
 
Pat,

I cut 1/2 of my position because I do not have as much faith in them as I used to. The ATI chip seems to be very good and actually allows games to run in 32 bit color at reasonable performance. The developers comments to the Voodoo3 were not very positive and 3DFX seems to really struggle to support any drivers that are not Glide based.

I have two main concerns the first being that I am not convinced as of this point that the Voodoo3 will be the best gaming card on the market when it comes out. The developers responses to the Voodoo3 concerned me and I am not sure that the Voodoo3 will be the best card available for Q3A, Everquest or any of the other big games coming out next year that I want to play.

The other concern I have is how is 3DFX going to grow their business. It seems to me they have to do it in the OEM space. Is the 125 mhz Voodoo3 going to take business away from the Fury or a .25 micron TnT?? I do not know but I do not see any reason right now why they can assume that the Voodoo3 is going to own the OEM space.

I see the risk with 3DFX as being very high and since I do not have that much faith in the stock going to 40 I wanted to lighten my position.

Eric
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