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Technology Stocks : 3DFX

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To: Patrick Grinsell who wrote (9505)12/11/1998 10:20:00 AM
From: Sun Tzu  Read Replies (1) of 16960
 
ATI makes very little of its revenue off the retail market. They are predominantly an OEM player, which is why they have not gone bankrupt. If you are the kind of person who keeps reading computer magazines (or game magazines in this case) then almost by definition you are among the informed user base and not the "general public". Most people are not interested in or cannot keep up with the technology progress. They do however tend to know someone who does (at least in their opinion). At the very least, they ask the sales guy for advice. So what is to make the average "expert" recommend one *company* (not the card) over another? Only if that company has consistently made headlines and won awards for one (or any) of their cards. If you look, you will see very close parallel in auto industry and audio industry (care to guess which brand(s) of loud speaker most people would choose if they wanted to buy an audio system for ~$3500?). This is why auto makers support Indy races and university mech-eng design teams, even though very little of those designs makes it into the mass market sales.

Sun Tzu
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