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


To: Bret P who wrote (1448)1/29/1998 11:47:00 AM
From: Ralph Bergmann  Read Replies (2) | Respond to of 16960
 
Bret,
I really wouldn't hold this stock for too long. It is very artificial and unpractical to build in a second card which is responsible for graphics management. Certainly this part will be integrated into the motherboard, where the profit margins for chips are much lower.
If other manufactures are coming up with similar or less good cards the mass of people will buy them, because they will be much cheaper. Have a look on the success of low cost pc's.
Look at S3 as a company which was the hero a few years ago and is now
the goat. Maybe 3fdx can learn from the mistakes of others. I think the solution would be a shift or an additional effort towards software development and service. This could tie customers to the company.
Too many times brilliant hardware achievements were surpassed by betters ones.

Best regards Ralph!