?If you want PowerVR to stay around you better hope that the price of a Kyro II won't dip below $100. 3dfx sold a bunch of voodoo 3 for cheap, and ran out of cash real quick. I still don't see any major OEM PC makers buying the Kyro II, that could be a concern down the road since Sega isn't buying any chip from PowerVR anymore. ?
Fundamental difference between 3dfx and PowerVR is that 3dfx had the overhead of a board vendor business, PowerVR don?t. In fact PowerVR are further abstracted from the potential pitfalls because they are an IP house; they only design the 3D core, and license it out ? in the case of KYRO ST are responsible for translating the design into functional silicon block, producing the chips, and signing up vendors; PowerVR receive royalties on the chips sold.
3dfx made several mistakes in their board vendor operation; not least being caught out by memory prices. During V3?s lifetime they bought the RAM it a relatively high price, and it subsequently dropped significantly, to the point the new CEO admitted that they were actually loosing money on some of their V3 OEM deals!! PowerVR/ST do not have these type of worries since they are only selling a chip ? it the board vendors that have to concern themselves with memory pricing worries.
Not only that, but V3 was a considerably more expensive chip than KYROII ? it is roughly the same complexity, but based on a .25um process, which means its quite large and the silicon wafer costs are high; KYROII is only .18um hence the actual chip prices will be significantly lower than V3.
PowerVR have several other irons in the fire as well, not least being PowerVR MBX. The MBX is a low power device that has been licensed to ARM ? for those that don?t know who ARM are they make CPU?s for many well known Mobile phone / PDA manufacturers. MBX has been designed for use in G3 Mobile/PDA devices, and with ARM onboard they could well see it happen soon. 3dfx were desperate to break into this market before they went under, and NVIDIA have said they want to as well; PowerVR already have the leg up.