3dfx is dead! Sold out to Nvidia

Page 2 - Seeking answers? Join the AnandTech community: where nearly half-a-million members share solutions and discuss the latest tech.

BenSkywalker

Diamond Member
Oct 9, 1999
9,140
67
91
I feel for 3dfx's employees and their families:( Getting news of this nature, particularly during this time of year, is never reason to celebrate.

Robo

"what's sad is that I think a lot of the hardships endured by 3dfx and their "inferior" graphics cards are the results of shortsighted idiotic slams that many website review "journalists" have taken at them"

This news, while not pleasant to hear, is entirely 3dfx's fault. They are extremely poor at the business and marketplace aspects. You can see it yourself on this board via their employees, they focus on technology that THEY deem important and then try to push it. That may work fine for the miniscule retail market, but the retail market can't support a high tech company like 3dfx(as this proves).

Dell, Gateway and Compaq were all potential customers for 3dfx, and what did they have to offer them? Less features on the side of the box, and THAT is what matters. This never has been rocket science, they have had people screaming at the top of their lungs at them for several years telling them what they needed to compete, they were blindly devoted to pushing what they decided the market wanted. They now are seeing the end result.

Many of the major shortcomings of their products, in the MARKETPLACE, are the same ones that the loyal 3dfx fans have been saying didn't matter. AGP texturing, 32bit color, high resolution textures, hardware T&L. You can say whatever you want about how useful they were IN GAMES, but that never has been what mattered in the marketplace. Step back and take a look at the market, what you as a gamer want to see and what OEMs can use to help push their products are two entirely different things.

Buying STB was a very, very poor choice(I wish the old forums were archived so I could post links to the fact that I, and many others, were saying it then). They insisted that it was to lure OEMs, while they were witnessing nVidia's rise without any such offering. They significantly increased their overhead without any real plan on obtaining the increased revenue to justify it.

Going with a dual chip solution for the V5 was the final nail in their coffin. It doesn't matter to the end user, but how many OEMs were going to look seriously at a board that had twice as many chips and still lacked the features that ATi and nV had to offer? Don't think as a gamer, think as a businessman.

Their last truly succesful offering was the Voodoo2, how long did people think they could keep it going? I honestly was shocked to see the news this early, I figured Q1 '01 at the absolute earliest, with Q2 or Q3 being more likely. The writing has been on the wall for a long time now, it seems that most people just didn't want to ackowledge it.

On the competition front, this certainly doesn't change anything at all, those who think it does don't understand the marketplace very well. Right now, and for quite some time now, nVidia has been competing with ATi and only ATi. Matrox, 3dfx and S3 combined don't offer enough marketshare to worry too much about. Even looking at the current generation, the Radeon is the only real competition in the marketplace to the GF2(not in some game benchmark which is of very little importance).

nVidia is still aiming for their goal of "Pushing every pixel on the planet", as they have been for several years now. ATi is still the biggest obstacle for them to overcome, just as they have been for several years now. ATi has only very recently been passed by nVidia in the OEM market, and they also have a console deal of their own coming up(Nintendo's GameCube) along with some very exciting technology from their ArtX acquisition.

In terms of pricing, again, 3dfx has not been competition to nVidia, it has been ATi. Look at where the GF2 was priced before the V5 price drops, set to match the respective Radeon alternative(32MB DDR~GTS, 32MB SDR~GF2MX, 64MBDDR~ 64MB GTS), just as they still are(anyone wonder why the 64MB boards haven't dropped? Because the Radeon hasn't).

For moving the industry forward, outside of FSAA, 3dfx hasn't done anything since the V2. I know, Rampage and GP woulda coulda shoulda, but they didn't. If they had been even keeping pace with everyone else, let alone leading, in terms of features(performance is not nearly as important) we wouldn't be having this discussion.
 

exceeds

Junior Member
Oct 24, 1999
13
0
0

Don't count ATI out of the high end gamer market. The Radeon line is a huge leap forward for ATI. For once gamers no longer see ATI on the box and turn up their noses. ATI has committed to delivering a complete line of graphics for the hardcore gamer down to budget user. The Radeon II should be exciting indeed.

I am sad to see 3DFX go as well, the Voodoo 1 was what started the 3D gaming revolution for PC. Nvidia just executed better and had a better marketing/hype machine. I'm currently using a GeForceDDR but I'm looking forward to the next-generation parts from ATI and Nvidia... Radeon II vs. NV20... FIGHT! Unfortunately there is one less player at the high end table these days.

R.I.P. 3DFX

tip, to avoid busting the bank don't buy a new Video card EVERY product cycle, I find skipping one cycle works best. ie. I went from TNT2 to GeForce DDR (skipping TNT2 U and GeForce SDR) and I'm now going to go from GeForce DDR to Radeon II or NV20 - whoever gives me the best overall package in terms of features, performance, image quality, and price will get my upgrade dollar.
 

SleepyTim

Member
Oct 27, 2000
106
0
0
Good point Exceeds. The Radeons are fantastic cards and have given ATI a very solid foundation in the retail market. In fact, the majority of people I talk to feel the Radeon is a superior all-around card to the GeForce2 GTS, and I agree. I have 2 machines, one with a GeForce2 Ultra, and one with a 64MB Radeon. I returned a GTS to get the Radeon and it was the best move I could have made. The Radeon-2 and other future generation Radeons should be very exciting.

I also hate to see 3dfx go myself. Less competition means we all lose in the end. Nvidia and ATI are both such huge companies, we can only hope they keep each other in check.
 

randomlinh

Lifer
Oct 9, 1999
20,846
2
0
linh.wordpress.com
what i want to see is some ATI driver support.. if they continue what they did before.. they're screwed.... now, i just gotta wait for some good win2k drivers for a radeon AIW.. and the cash for it ;)
 

SleepyTim

Member
Oct 27, 2000
106
0
0
lnguyen, the latest Win2k drivers are very good. In fact they come within 10% of Win98. I think you will be happy with them. :)

Anyway, back to the subject of the thread. After reading the press release and many articles floating around, it looks the primary reason for the 3dfx deal was to stop the many lawsuits that were dragging out in the courts. It looks like it could be a very long time (if ever) before Nvidia actually uses any of the technology that 3DFX owned.
 

miniMUNCH

Diamond Member
Nov 16, 2000
4,159
0
0
This doesn't come as suprise to anyone who been following the industry as of late.

I hoped 3dfx would try to put out the RAMPAGE before going under, but it's tough to maintain an operation when banks won't finance your company's production.

I, as a consumer, am not concerned about either the performance or price of future cards. ATI has a superior card, IMO, to the Geforce2 and will be giving nVIDIA a run for their money for the next year, at least. Secondly, the SOC (System On a Chip) industry is beginning to build and will really be moving 2002-2003. SOC chips have all required system functions on the chip die...CPU, mem controller, I/O, DSP, USB... The chips are programmable, you simply download the RTOS (Real-time operating system) to the chip; so you program a chip to perform rendering functions. The chip won't be as optimize, but the price/performance ratio of SOC's is very low compared to an ASIC so...companies will be able to use SOC chips for graphics cards that will run 1+ GHz range! Don't think this works, or will work? The Dreamcast is a SOC system with 16MB (or is it 24MB), I believe the SOC is a 204 MHz RISC chip made by NEC. The Game Cube and X-box will also implement SOC technology, or so I've heard.

So if nVIDIA and ATI try to rip us off, we could see other companies (like Microsoft) release SOC graphics cards.

Also, I wouldn't be suprised at all if we see Mosaic/GP from nVIDIA after the NV25.
 

BFG10K

Lifer
Aug 14, 2000
22,709
3,007
126
Just out of curiosity, what happened to the money that 3dfx obtained when they sold that chipset manufacturing plant? Surely they must have gotten quite a bit of cash for it?
 

Dark4ng3l

Diamond Member
Sep 17, 2000
5,061
1
0
They probably waited for their first rampage silicon and it was probably a disaster so they lokked at what they had ans saw they didnt have enough $$ to keep all their engeneers working on it and went under. Thats what I think happened.
 

Octoberblue

Senior member
Sep 16, 2000
306
0
0
:cool:
Sad to see 3dfx go. Does anyone really believe they were driving prices down though? I fail to see the logic of this as their products came out after their competitions and are not exactly priced to undercut.
Don't think Nvidia is going to be the next Intel or (even worse) Rambus. Why would ATI go back to OEM market just b/c 3dfx is gone? The paranoia isn't logical. The whole reason why companies like Nvidia and AMD exhist in the first place is b/c there was money to be made and some talented people stepped up and said, 'hey, I think we can do it better'.
As long as there's money to be made in the gaming market there will be companies trying to make it. ATI will certainly stay in for some time to come. Not sure people realize, ATI is a monstrous company that won't be going bankrupt or getting bought out any time soon.
And of course there are bound to be other bright young engineers out there right now who will see a way to do it all ten times better. Who knows? Some of them may be talking to venture capitalists even now. :)
 

RoboTECH

Platinum Member
Jun 16, 2000
2,034
0
0
actually DarkAngel (not gonna type it your style, too much of a pain! :D), they were completely out of money

they had to get 15mil$ from nvidia just to close themselves out. They didn't have enough capital to pay paychecks or severence pay. They were just $hit outta cash

as far as Rampage, the thing supposedly was only going to need a single respin. It was going to kickass, but respins cost money, operations cost money, everything costs money, and since they couldn't secure the line of credit they tried to secure, they were outta $$$, plain and simple.