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Technology Stocks : 3DFX -- Ignore unavailable to you. Want to Upgrade?

To: Chip Anderson who wrote (13428)	6/24/1999 2:27:00 AM
From: Patrick Grinsell	Read Replies (1) \| Respond to of 16960

The only relevant question is whether or not this will affect nVIDIA's R&D capabilities. Pat? Anyone? Will NV10 (or whatever it's called) be affected? Unfortunately, the equation is pretty simple. Supply of independent chips only decreases because of the merger (less 3d chips in the pool). As long as overall demand remains strong, this mean NVIDIA will be able to command a higher price, and therefore higher revenues. As a matter of fact, NVIDIA may be able to squeeze some R&D dollars out of Creative for NV10 much in the same way 3dfx did for Voodoo2. Here's my estimation of the fallout from this: ATI: Postive- May be able to steal current NVIDIA/DIMD deals. OEM's aren't stupid enough to fall for the "business as usual" line. If they aren't going exclusive then why the merger? Matrox: Postive- See above. 3dfx: Neutral- DIMD's past record with OEM's isn't that great but 3dfx has NVIDIA to worry about in the technology contest. S3: Negative- Horrible choice for a boardmaker. They'd be better off using Diamond's manufacturer and branding/marketing the boards themselves. DIMD: Positive- S3 will probably do what DIMD management should have done long ago...clean house. Replacing the inept management at DIMD should help too. 3dLabs: Neutral- S3 and 3dLabs target different markets. Pat