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To: Jacques Chitte who wrote (33075)	5/8/1998 7:00:00 PM
From: JPM	Respond to of 50808

"PC-DVD decode is a specialty app for hardware. Looking forward, AB sees software decode becoming prominent as processor speeds improve." That's what they said about audio software decode...

To: Jacques Chitte who wrote (33075)	5/8/1998 7:01:00 PM
From: John Rieman	Read Replies (1) \| Respond to of 50808

Alex M, you sound like the analysts. They expect flat to down earnings this year. I expect higher earnings than last year, but only by a dime or 2. The consumer DVx chip is one of the reasons that Hardware Decoder Chips will go away in the market. It both encodes and decodes. DVx consumer, or 2 Real, will be priced at sub $50 and availible in late September. ZiVA was priced at $45 to $55, in Feb of '97. Expect 2 Real to be priced the same way. Why buy ZiVA, in 2000? You can have MPEG-2 encoding in real time, for $10 more. Software encoding in MPEG-2 in software takes 42 minutes for 1 minute of video. That's on a workstation. Quality Real time encoding for MPEG-2 isn't going to be done in software. HDTV 1080p isn't even being done now in hardware.