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

To: Joe C. who wrote (10224)	1/25/1999 2:41:00 AM
From: Patrick Grinsell	Respond to of 16960

A stab at the inventory write-off question... Okay here goes. 3dfx had 25.5M in inventory at the end of last quarter...after the write-off. Costs for Voodoo2 are around $15-$20 per chipset. If we assume that all the inventory was pretty much Voodoo2 (which I believe 3dfx said that it was) that gives about 1.3M to 1.7M units that need to be sold in Q4 to make it happen. Since 3dfx seemed to feel comfortable with the 500K number I don't think those extra chips will ever see the light of day. FYI, the write-off was for 4.5M. So if some miracle does happen and those chips can be sold, we can consider that 4.5M free money. What really has my interest peaked is the Voodoo3 3000. Given its price differential from the 2000 it's margins should be in the 40%-50% territory. I would expect revenues at about $140-$150 per board given the retail $180. My first sets of number runs on this look impressive even if I throw in crappy sellthrough (about 500K units per Q). Pat

To: Joe C. who wrote (10224)	1/25/1999 3:38:00 PM
From: AJ Berger	Read Replies (2) \| Respond to of 16960

Stop all that Diablo2 Teasing! I can't wait for that title to hit the market this fall. I know at least a dozen adults who will take off from work that day their morning FedX arrives form Blizzard to log on battle.net with their newbie Avatar! I have a sneaky suspision that Buldars Gate sceanery rendering may have forced the delay of D2 so they could expand the graphics some more. I think they are also going to rework the Level CD's so that add-on's like Hellfire was for D1 will be easier to develope as they are usually more profitable than the game itself for Blizzard. Look how Brood Wars is breathing all new life into StarCraft after more than a year. This delay will also give them time to support other None-Voodoo graphic platforms if they choose to. Considering how well entrenched MSFT's DirectX-6 will be by then, I suppose they'll support it.