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NVidia On 3dfx Buyout

by Steve Gibson, Dec 16, 2000 2:43am PST
Related Topics – NVidia, 3dfx, Buyout

Well guys, remember a little while back we posted a story about a possible NVidia buyout of 3dfx? People balked... (Jack was wrong) Hell, I thought no way. I figured ATI or someone else would step in. Then yesterday it happens, 3dfx gets gobbled up by the mighty NVidia. Well here are a couple of interviews on it at FiringSquad and GamersDepot 

What exactly have you bought from 3dfx, and do you now own Gigapixel? A: Their core assets, which includes their patents, patent pending applications, trademarks, branding, and inventory related to the graphics business. Gigapixel was a company who was purchased by 3dfx. We have purchased 3dfx's core assets, so that means we have access to whatever technology might've been developed by either company.
update Jack - In my defense, a lot can change in a quarter. For instance, this quarter, gross profit was -$21.7 (that's right, a loss). Their net loss for the quarter was $178.6 million. That means for 2000, 3dfx had lost a total of $291.5 million. With losses like that, it became easily affordable for nVidia to get some good IP, maybe pluck some key 3dfx people from the company, and just get 3dfx out of the market for good.




Comments

45 Threads* | 125 Comments
  • what a damn sad story. Ever since im into computers i was a huge fan of 3dfx, since the vodoo enhanced the "curves" of miss croft in tomb raider 1. To see them go now will be a huge loss for every gamer out there, with Nvidia holding a monopole (who cares bout ATI????).I don't see any advantage in it, just 1 gamer left in the market, shit. But it was forseeable, ever since the 1st generation of 2d/3d graphics cards. Choose between TNT(1) and Banshee, no way round the first one. Ever since they were way behind the nvidia folks, but i hoped the new vodoo 5-5500 would be a hit an get them outta trouble.
    My sincere condoleances
    Game over for 3dfx




  • The silver lining in this situation is that NVIDIA will be making some very smooth video cards. They now hold a great foundation of patents and have tons of talented engineers building on them. The product cycle will slow, however these products will be much more refined when they are released.

    This is a double edged sword. We will see a very segmented approach with products aimed at each and every one of us. One for the OEM, one for the mobile market, a workstation card, and two for retail- economy & enthusiast. Without strong competition NVIDIA will squeeze every penny of profit it's different consumers will bear.

    We as consumers need to be very optimistic for what ATI brings to the table. If they play their cards right they will be the AMD to the Intel of recent yestreday. Everything is cyclical and history repeats itself. Intel was top of their game for years and we loved them, but there was a price for this was refinement. Now AMD has come to our rescue, and we all use more power for less money regardless of if it is an intel or AMD system. But are these systems less stable? Of course they are. We are in the rush it out the door fix it later cycle.

    I am sad to see 3dfx go. What they brought to market was good, anyone who ever used voodoo knows this. Now they will live on in NVIDIA. So in a way what was great about the two companys will augment each other. The game has just changed and one player has been crowned KING.









  • Jesus, 3dfx must have had some really retarded management to rack up a total net loss for 2000 of $291.5 million.

    As for talk of nVidia dropping T&L and embracing SLI solutions - garbage. NVidia CANNOT drop T&L now because they are no longer the only manufacturers doing it. ATI could steal a base on them by really making good use of the tech and nVidia wouldn't want to be left behind.

    They will perhaps utilise SLI for thier top end business solutions but nothing else. Manufacturing cards with several chips as opposed to one is still stupidly expensive - they will be quite happy to slow down development and not force themselves into a position whereby single chip solutions cannot achieve the speeds they require.

    I would also be surprised if we saw much of a price increase, you will more likely see the cheaper nVidia cards becoming more cheaper, and the very top cards like the GTS PRO/Ultra perhaps becoming slightly dearer. Afterall, as has already rightly been said, the average computer user doesn't even know what vid card they have, never mind how to upgrade it.

    Just chill people, prices aren't going sky-high just yet.

    BH