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

To: Scott Garee who wrote (8040)	10/8/1998 5:52:00 PM
From: Michael Linov	Read Replies (2) \| Respond to of 16960

Diamond burned themselves with 3dfx a) Trying to squeeze the market of SiliconMagic ram for the Voodoo2 (and paying top dollar), their competition got memory at MUCH lower costs. b) Shipping 8 mb V2's (despite the heavy demand for 12mb models). The result was that creative got the business, and Diamond was stuck with alot of (very expesive) 8 mb boards that no one wanted. Without 3dfx, Diamond would be dead anyway. They made up the majority of sales.

To: Scott Garee who wrote (8040)	10/8/1998 6:00:00 PM
From: David Rosenthal	Read Replies (1) \| Respond to of 16960

Scott, They really badmouth TDFX if you read between the lines, I wonder why? Look at this: Net sales $123,200 $92,028 Cost of sales 122,817 73,850 See the discrepancy in cost of sales. This is rebates and price adjustments. As mentioned before: 3DFX sold Voodoo2 chips to many companies and so there was an oversupply of Voodoo2 boards and many cheap versions. This was after Diamond paid a premium to guarantee chip supply when Voodoo2 first came out. Effectively Diamond's margin was killed. Dave