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

To: Scott Garee who wrote (9593)	12/14/1998 9:48:00 AM
From: joel3	Read Replies (2) \| Respond to of 16960

This deal is difficult to swallow. From the press release... The key benefits of the transaction will be: * To provide PC-OEM and retail customers with a single source for 3Dfx branded add-in-boards for greater price stability and smoother product transitions. Indicates that TDFX will drop its long developed relationship with other board makers. STB announced a large loss this quarter, despite large sales of TNT. Why do they look so attractive to TDFX? On the bright side, since the technology cycle is so fast, the excess baggage of TNT will go away quickly. On the negative, will this deal slow down the release of Rampage? How long do share holder of TDFX have to wait for a solid long-term plan & profits? Just trying to make sense of this announcement. Joel

To: Scott Garee who wrote (9593)	12/14/1998 9:49:00 AM
From: Scott Garee	Read Replies (1) \| Respond to of 16960

More reasons to not like this. Currently a consumer can hate DIMD, or CREAF, or STBI, or all of them, but still be able to buy TDFX and be happy. Now if you want TDFX you will have to buy STB products. So much for competition bringing the price down. Instead of 3 to 8 boards taking up space on the shelves, all with TDFX' logo on them there will only be one (per product). Will developers be as TDFX-centric when it is a private label board? I guess this means TDFX has wholly become OEM focused. Retail is way down the list.