3dfx getting out of the graphics card biz?
Posted on: 08/31/2000 02:03 PM

Wow, that's all I have to say about this one. Papa Hooz sent this gem my way. A gentleman by the name of LORDLYNX in MaximumPC.com's forums posted up a very interesting tidbit of information.
"3dfx stated in their conference call that their model of business is not working out for them. They purchased STB a while ago so that they could manufacture their own boards instead of rely on 3rd party manufacturers like Nvidia does. The hope was to increase profit margins by getting rid of the middle man. As of their conference call today, they have stated that they will once again be changing business models and getting out of the graphics board market! In other words they'll be going back to the old model of just producing chips. STB got the shaft."
Interesting. Could this be positive or negative?
So once again we should be getting a variety of 3dfx cards which means lower prices and better options and even MORE competition which in turns means lower prices. Did I mention that we should hopefully be getting lower prices?
Yeah, actually, you did. :-) Check it out for yourself here.

UPDATE!: Brother Kyle over at the HardOCP has stepped up to the plate on the whole 3dfx issue.
First off this is NOT true, but it is not totally false either. Here is the real deal in a nutshell. 3dfx is going to most likely sell their plant in Mexico. 3dfx will either reach agreement with the company that purchases the plant to continue making the cards or look to take their business elsewhere. They ARE NOT going to adopt the old business model back at this point. 3dfx will STILL control their own retail sales here in the US and other major markets. 3dfx is looking at selling chips to other card manufacturers in smaller markets and markets they have had trouble with penetration in. Yes they are moving away from building the cards themselves, this gives them some better options with costs of manufacturing.
Thank you Kyle for clearing up the issue. :-)

Printed from 2CPU.com (http://www.2cpu.com/contentteller.php?ct=news&action=story&page=3dfx_getting_out_of_the_graphics_card_biz.html)