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Marc, no question that ATI has been quite successful in the graphics market - they have earned number 1 by putting out quality products at an affordable price. I don't think TDFX will knock off ATI from the top spot any time soon. However, I do believe that the 3D market has significantly changed towards a branding/high performance type of market where consumer knowledge is increasing. ATI has recognized this by attempting to deliver a higher performing board. Consolidation within the industry will allow for higher market shares for each remaining player. However, those that remain will be larger and better capitalized, will be able to afford the higher R&D costs that will be needed, and will be much more aggresive with product differentiation and branding. This is where the combined STBI/TDFX company will have a real advantage over ATI. TDFX is still the king of the hill in the retail gaming market. TDFX already has strong brand recognition (in the high performance market) and can provide clear product differentiation through their proprietary Glide API. This will be especially important given the upcoming battles of the titans. Currently, all the other chip makers are primarily dependent on Microsoft to support any new features they may develop. Unless Rampage is a total failure, TDFX should be able to maintain their edge in both of these areas for at least another year or two. I don't think quibling over the slight differences between Banshee, Ragepro, TNT, V2 SLI, V3, etc. will change this in any way. ATI has had a long history (use the max comparison on your chart) and TDFX is only now getting started. TDFX still has a lot to learn and acquiring STBI buys them a lot of the experience they need. On the surface both companies seem to make an excellent fit. It will be interesting to see how that market price comparison chart looks 2 years from today. Regards, Joe C. P.S. Do you own TDFX as well? |
