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

To: Scott Garee who wrote (9618)	12/14/1998 2:22:00 PM
From: Michael Linov	Read Replies (1) \| Respond to of 16960

Boy, 3dfx is such a fun stock to own :) One has to wonder what impact this linked-stock-price thing is going to have on 3dfx's stock price. Would it not lock us into some stable price, and prevent upward movement till march? Ditto for STBI? I've certainly loaded up on some STB stock today at the $7 level (mainly because it seems cheaper than buying the equiv. 3dfx stock). I think this deal is great for the company, though I do have some concern about losing DIMD/CREAF... The CNN article sure makes it look like they want to go it alone... And what impact will this have on 1Q orders? Looking forward to some interesting days ahead... I can't help but feeling that this isn't the last surprise of the year from 3dfx.

To: Scott Garee who wrote (9618)	12/14/1998 2:59:00 PM
From: gbh	Read Replies (1) \| Respond to of 16960

Competition from multiple OEM's keeps the TDFX price up (and costs down), while competition amongst OEM's keeps consumer prices down, which is good for demand. Scott, I agree that "demand" from OEMs keeps chip price down, but I don't really think "competition" does. Also, why would competition allow chip prices to stay high? At the end of the day, with a very competitive Riva TNT chip, and now an ATI 128 chip available, the price of a TDFX chip has to come down to compete. The way I see it right now, ATI is the only company making any money, and others (chip companys, or board companies) will try to emulate what works. The chip companies have to have the people to write the drivers anyway. And now the OEMs are essentially using these drivers as is, and basically adding no value. I think this model will allow a few select companies (TDFX included) to survive the coming shake off among the leading guys. Obviously this shake out has already occurred to a great extent, but its not over. Certainly Glide will be required to utilize Rampage features. I'd like to see as many developers as possible supporting Rampage. Is Rampage Voodoo 3? If so, why do think Glide will still be necessary to wring out top performance? OpenGL and D3D seems to provide more bang for the buck for developers. I just don't see a proprietary API surviving any longer, now that TDFX has serious performance competition. Not nearly as much so as DIMD or CREAF. 100% agree, but they couldn't possibly have bought either of these guys. Now they get to see just how powerful that Voodoo brand is.