Props to Nvidia and Amd

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

AmberClad

Diamond Member
Jul 23, 2005
4,914
0
0
Oh, are we automatically assuming that a privately held computer hardware company would act altruistically, and in the interests of its customers? I mean, we're not talking about Linus Torvalds and Linux here.
 

krnmastersgt

Platinum Member
Jan 10, 2008
2,873
0
0
Well if they wanted to act altruistically, they'd sell their cards at exactly the cost it took them to design/manufacture and maybe a tad more to keep their employees paid, but even as a private company they are a business. But the advantage they'd receive is that they don't have to prematurely release products or re-release old products with new branding and getting hounded by the small portion of the market that publishes all the reviews.
 

golem

Senior member
Oct 6, 2000
838
3
76
You are also assuming the private company is as well funded and the same size as the public one.

If two companies started out at the same size, both have competent management and one went public and one didn't. The public one in a couple of years probably is probably dominant.
 

golem

Senior member
Oct 6, 2000
838
3
76
Originally posted by: krnmastersgt
Well if they wanted to act altruistically, they'd sell their cards at exactly the cost it took them to design/manufacture and maybe a tad more to keep their employees paid, but even as a private company they are a business. But the advantage they'd receive is that they don't have to prematurely release products or re-release old products with new branding and getting hounded by the small portion of the market that publishes all the reviews.

I really think you are assuming this private company operates in a vacuum with no competition. What you say is fine if there is no competitor, but if there is forget it. This company is dead.
 

AmberClad

Diamond Member
Jul 23, 2005
4,914
0
0
Originally posted by: krnmastersgt
Well if they wanted to act altruistically, they'd sell their cards at exactly the cost it took them to design/manufacture and maybe a tad more to keep their employees paid, but even as a private company they are a business. But the advantage they'd receive is that they don't have to prematurely release products or re-release old products with new branding and getting hounded by the small portion of the market that publishes all the reviews.
The one example that immediately comes to mind as far as an altruistic hardware venture is the OLPC project. But that seems to have been an epic failure in terms of actual product delivery to customers.
 

krnmastersgt

Platinum Member
Jan 10, 2008
2,873
0
0
Of course I know there's competition but theres also the price/performance/market share that changes with reputation along with delivery. There's no reason a private company couldn't compete on par with a public one, less time wasted on just satisfying shareholders with good news and tidbits they'll understand and enjoy and more time spent on getting down to what the company can really produce.
 

golem

Senior member
Oct 6, 2000
838
3
76
The private company can't compete because it doesn't have the same amount of money.

Lets say there are 2 relatively equal Vid card companies. Both well run with good employees of roughly the same size. One goes public, one doesn't.

The one the goes public has a huge advantage in cash now.

With that cash it can do 1 or more of the following.

Hire more engineers to design a product either in a shorter amount of time or much better in the same amount of time.
Do more marketing even if the cards offer similar performance
Hire away the engineers/employees from the private company to cripple the private company.

In this scenerio. How is the private company better off?
 

AzN

Banned
Nov 26, 2001
4,112
2
0
Originally posted by: AmberClad
Originally posted by: Azn
If AMD or Nvidia didn't do it someone else will.
Is there some other company in the discrete video card business I'm not aware of :confused:?

There are but they just can't compete with AMD or Nvidia.