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Technology Stocks : 3DFX
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To: Casey who wrote (12431)5/11/1999 12:16:00 PM
From: Obewon  Read Replies (1) of 16960
 
I'm long on the company but I have to admit the company made several major mistakes. (Hindsight is nice of course!)

Mistake 1: Voodoo Rush (no comments necessary, the part stank!)

Mistake 2: Sold Voodoo2 chips to too many boardmakers. Competition at the retail level depressed what should have been an even more profitable period for the industry.

Mistake 3: Failed to monitor customer demand and allowed the supply channel to become glutted with Voodoo2 chips and boards leading to the disastrous 3Q98.

Mistake 4: Failed to get Banshee out on time. By the time it was released Nvidia's TNT design was clearly superior.

Mistake 5: Have publicly stated that OEM sales are critical but have failed (so far) in its efforts to move into the OEM space. Rumors continue to swirl that the combined 3dfx/STB may not be able to handle both the retail demand and initial major OEM demand.

Obewon
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