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

To: Frank Sheridan who wrote (7456)	9/21/1998 1:44:00 PM
From: Baldur Fjvlnisson	Respond to of 16960

Thank you very much. Profits I understand, technology less so. Best of returns, Baldur F.

To: Frank Sheridan who wrote (7456)	9/21/1998 2:37:00 PM
From: Greg S.	Read Replies (2) \| Respond to of 16960

Short version: Intel will keep pushing their inferior products at extremely low prices until they succeed in driving everybody else out of the 3-D accelerator market. Just my opinion. This is why I finally dumped this stock. You just can't win if your competition is Intel or Microsoft. So I suppose that Sun, Apple, SGI, and IBM "can't win"? It's not all as simple as that; 3Dfx and Intel target different markets. Intel can kick tail in its market because of its immense marketing and distribution power. 3Dfx can smite the competition in its market because of the quality, speed, value, and support of its products. Show me a game enthusiast who buys an i740 and I'll show you a bumbling idiot. Different strengths cater to different markets - just like 3Dfx doesn't have the PR or the price to crack the OEM market wide open, Intel doesn't have the quality to enter the niche markets dominated by 3Dfx. A second-generation i740 (codename Portola) is due out early next year. We'll see how it stacks up against Q1/99 competitors like Banshee2. An aside: what are the other companies' roadmaps for Q1/99? -G

To: Frank Sheridan who wrote (7456)	9/21/1998 3:05:00 PM
From: Tae Spam Kim	Read Replies (1) \| Respond to of 16960

Frank, Do you know ANYONE that is buying Intel 740 graphics cards?? I can't find anyone. Bottomline 740 has been a non-factor, non of the mainline OEMs are shipping it (except Micron) and from what I see it has NO retail end distribution. The 740 has been a total failure, no one is buying it even at its "dumping" prices. -Tae Kim

To: Frank Sheridan who wrote (7456)	9/21/1998 4:07:00 PM
From: Rob Cavese	Read Replies (1) \| Respond to of 16960

I don't buy the "Intel will crush all" argument: 1) With the FTC on their back, wiping entire industries off the map probably isn't the overall internal focus for INTC. 2) The add-on card business is less about price and more about price/performance. The 3D market is filled with some good products at bad prices but I'd choose those over bad products at bad prices. Intel is in business to make money - not just to churn out "cheaper-than-you" products. Why would they ship i740s at a losing price? It's not within their strategy to be a market follower or to be a bargain-priced alternative. 3) Manufacturing ability is a small part of the success equation. In fact that same capability is what kills you when the chip market turns down. R&D and product development, in my opinion, counts for much more. The i740 required the help of outside development which shows me a lack of resource commitment on the part of INTC. All good companies make decisions to invest in new markets based on profitability as well as overall strategic direction of the company. The i740 has proved to be a half-hearted effort at best. I really don't believe INTC wants to enter a market that has some quality competitors already entrenched and try to win that battle based on who can sustain losses for the longest amount of time. It's just not good business.

To: Frank Sheridan who wrote (7456)	9/21/1998 10:38:00 PM
From: Jeff Lins	Respond to of 16960

Frank said, "After thinking about this at great length I have come to the following conclusion about TDFX: The market has decided that although TDFX has superior technology compared to Intel, Intel has much greater manufacturing and marketing ability. Since TDFX is competing directly against Intel (VooDoo2 vs. i740) TDFX has been identified as being cannon fodder for Intel." This is not true. Intel competes with TDFX on the graphics level in the same way that GM competes with Mercedes. They both make cars, but.... As a TDFX shareholder, I LOVE the i740. Would love to see them in EVERY computer. What a great opportunity for upgrading, which is the only function of the V2. Intel probably lost a bundle on graphics, and I doubt that they will want to focus tons of R&D to this area. They will likely be more concerned with networking (profitable line as well as one necessary to compete down the road) and CPUs (core business; competition catching up at a faster pace than in the past).