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

To: timbur who wrote (12828)	5/20/1999 7:17:00 PM
From: Steve Chang	Read Replies (1) \| Respond to of 16960

Beware the "Gaming Ghetto" :) I've been a holder of TDFX since the Sega blowup and I've been happy with the direction of the company overall, despite the ups and downs of the stock price. However, branding is very important and TDFX may be making the same mistake as SGI. SGI was very associated with high-perf graphics but had trouble breaking out of that niche even though it has some appealing non-graphics systems. SGI's competition made sure to always associate SGI with graphics. I agree that TDFX will likely own the gaming niche for the forseeable future (which isn't long in this biz), and the gaming niche will grow for a while. But when it stops growing what will happen then? My hope is that they package trailing edge TDFX technology under the STB brand (perhaps with a 3D powered by 3dfx logo) for the OEM market. This will have a few benefits: 1) Software and hardware will be stable which will appeal to OEMs. 2) Cost will be low another bonus for oems. 3) It increases volume for TDFX will it help it with fab pricing etc. 4) Increases the user base. Gets glide in a lot more PCs.