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

To: joel3 who wrote (9607)	12/14/1998 12:16:00 PM
From: Obewon	Respond to of 16960

I think the past few quarters have shown that ATI's strategy in the segment is the only way to consistantly make money. 3Dfx has just shown that they see the handwriting on the wall. Margins are continuing to fall for EVERY computer component and this means that products that touch too many firms cannot stay profitable. Currently, 3Dfx products go through too many hands before getting to the consumer: the foundry, 3Dfx, board manufacturer/distributor, and OEM/retailer. FOUR steps! ATI has TWO: it and the OEM/Retailer. This means additional margin for the company AND the OEM's/retailer's benefit from slightly lower costs as well. The question remains whether STBI can produce and distribute boards as efficiently as ATI. They have been on a downward spiral for some time. OB BTW I own an STB BlackMagic Voodoo 2 board