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

To: Chip Anderson who wrote (3608)	5/30/1998 10:57:00 PM
From: Rutgers	Read Replies (2) \| Respond to of 16960

Let me echo the chorus of thanks for your excellent reporting... One follow-up question and one comment: Question: <<"Unreal" will be to best game/3D Engine for the next 6 months to a year.>> I read some stuff 'bout "Sin"; did you get to check that game out and, if so, what were your thoughts? Comment: [off topic SB Live! v. A3D] While I truly appreciate your comments, and commend you for your disclosure of your vested interest in AURL, I wonder how much of your impressions were based upon just listening to it via one game. Obviously, I don't know the answer to this question myself, but I do wonder if the differences might be more noticeable in other games. Maybe it doesn't make any more difference in any other game - or maybe it does. But more importantly, I think it is critical to be mindful of the long term purpose of the SB Live! in that it is geared for Home Theater convergence as well as 3D Games. Thus, I gotta believe the SB Live! with the 5.1 (or better yet, the 7.1) speaker set is something that will make a difference and people would desire if they plan on using their high end pc's for either music or watching DVD movies (you can plug the Creative DVD Drive into your TV if you wish). Thanks again.

To: Chip Anderson who wrote (3608)	5/31/1998 12:35:00 AM
From: Joe C.	Respond to of 16960

Chip, My take on their strategy based on your observations, an insightful post by Matt Webster on Friday, and everything else I've been reading (thanks for your hard work by the way): 1. Banshee is meant as a low cost all purpose card that will provide strong 2D and 3D capabilities for the masses. They are going for high volume "standard" 2D3D configuration - not an option up for extra dollars type board. At 140 or so, this should work. OEM's should be able to justify a few extra dollars (from low end) to deliver a better product. If the baord is the standard option, many people will find out they have it when they open the box. High volume, low margins = high visibility, improved branding and strong contribution to bottom line. 2. TDFX never intended Banshee to perform better than TNT. They probably could have tweeked it a lot more than they have since it was delayed to get V2 out. They probably chose not to do so on purpose so that they could keep the cost extremely low. 3. I am convinced that TDFX was never concerned about Banshee jeopardizing V2 sales. This is the slowest time of year for new PC sales. They have held off on its' introduction so that they can implement a highly coordinated marketing campaign for the Christmas season. They are saving everything for this one purpose. Release the product, announce the OEM's, get the technicals reviewed, and advertise all in the 3rd to 4th quarters where it counts. They want to make TDFX a household name for the general PC user. They can't do this alone since they really don't have the dollars it would take. However, the OEM's can use this as an added marketing point. The OEM's have the money it would take to deliver the message. 4. If TNT is priced at $239 as per the OGR article, it will cost too much to compete with Banshee for the general purpose user. Unless they drop their price significantly the TNT will be unable to compete with their Banshee strategy. 5. TDFX will lower the cost of the V2 drastically by the end of the year. V2 SLI will still outperform anything out there at that time. Hard core gamers want the best. If they're heart is set on TDFX acceleration, why spend the extra dollars on a TNT when they can get the cheaper TDFX Banshee and put in two TDFX V2's running SLI (or one card w/ two V2's). This is what I would do if I were buying a new box. 6. Hard core gamers that already bought a V2 will buy another before they buy a TNT or any other card. This gives them the best performance, least amount of hassle (i.e with drivers, etc.) at the lowest cost. As for next year ("the year of TDFX"), I think they may release enhanced versions of Banshee and V2 to keep the momentum/sales going. However, it appears that they are developing something much more powerful and innovative that will truly lockup their position as the leader. Given their past performance, I have confidence that they will be able to deliver the "Next Generation". What's your take? Joe C.