Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Patrick Grinsell who wrote (8382)	10/16/1998 3:09:00 PM
From: Simon Cardinale	Read Replies (1) \| Respond to of 16960

nVidia case, here I come... Turns out it is all filed in the Oakland branch of the US District Court of Northern California. Which turns out to be 5 miles from my house. Today I'm going to get a look at the complaint and answer and anything else I can get my grubby hands on. Wish me luck. I've never been inside a courthouse in my life. That's my story and I'm sticking to it. Simon

To: Patrick Grinsell who wrote (8382)	10/17/1998 2:33:00 AM
From: Obewon	Read Replies (2) \| Respond to of 16960

Patrick, While it is great to see so many Banshee's back ordered at the system integrator level, please remember that this is exactly the same deal we had when Voodoo II came out. I believe that someone on the thread mentioned the "Beer Game" mentioned in Peter Senge's book, "The Fifth Discipline" (an excellent book and a must read for anyone in business IMHO). Essentially, those businesses farther down the supply chain (closer to the customer) will overorder in the hopes that they will get the inventory of a "hot demand" product in the amount they really want. Since the product is "hot", they are competing with all the other suppliers at their level in the chain for a scarce resource. They hope that the more they order, the higher their priority from their supplier. Add several layers such as we have with Voodoo Banshee and demand by the system integrator may have little to no bearing on actual consumer demand. Eventually, the product is no longer in "hot" demand and a huge inventory correction occurs. This is exactly what happened with Diamond Multimedia last quarter. 3dfx said its consumer demand monitoring system will be in place by the end of THIS quarter, so until then they must be careful not to let one of their channels get overly stuffed with product. It should also be noted that having a huge inventory of Voodoo Banshee's in the channel at the end of this quarter could be very bad. Since Banshee 2 is expected in Feb - March timeframe, I would expect Banshee sales to be decreasing significantly in 1Q99 (absent some really significant OEM deals) so that channel inventories can clear out prior to Banshee 2's production release. OB