3DFX Message Board - Msg: 8579587

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Technology Stocks : 3DFX

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To: Patrick Grinsell who wrote (11391)	3/29/1999 9:41:00 AM
From: Joe C.	Read Replies (1) of 16960

thinking out loud but ... Do we need OEM deals just yet. I was reading an interesting article - mostly speculation - about the future: firingsquad.com The Dell going with the V3 4000 rumour and all the other talk has me wondering about TDFX's strategy on the current series: 3500 - Obviously intended for the LCD buyers - big spenders that want the best. Some of the more well to do hard core gamers - like Pat ;)will also shell out the bucks. They'll probably produce a reasonable number at great margins - big bucks for the bottom line. 3000 - The 3000 is a very solid gamer board. Excellent upgrade board for most pc users - even some of the SLI guys can consider it since they get slightly better visuals, higher resolution and great 2D. The pre-sales seem to show the board is hot. TDFX is going to have a hard time making them as fast as they can sell them - typical hot product launch scenario a la V2 last year. Margin on this board should be quite good. STB is probably going to be running fulll tilt making these cards. 2000 - Given the numbers above - do we really need big 2000 wins. Margins will be smaller, and production of the cards will compete with the other higher margin items. Obviously, we'd like to see the card in some OEM boxes - just to get a foot in the door. The problem I have is that if we can sell the other boards for more money /margin - why allocate production capacity away from these items to sell the 2000 to the OEMs. Naturally, this is all speculation but it does fall in line with TDFX's stratgey of trying to maintain margins. The down side is that poor OEM announcements could hurt TDFX on the street. I wish we had more solid information to go on, I guess time will tell. Joe C.

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