Another casualty of war: S3 has announced the shutdown of its graphics board business (including Diamond Multimedia's graphics board line). Despite reporting Q2 net revenues to be $135.8 million, S3 has lost $12.1 million, or $0.13 per share. Contrary to rumors, S3 will not be selling off its consumer graphics business, and the liquidation does not include FGL Graphics, the professional-level graphics division of S3 headquartered in Germany. With the success of the Rio products, the company is now being relaunched as a digital media and home networking company, focusing on the information appliance markets. They profess to continue their support of current OEM customers but will no longer develop follow-on products. You guys know what that means.
Remember the original Virge and the promise last year of the Savage 2000 cards having both the benefits of the GeForce with onboard hardware T&L and raw speed nearly comparable to a 3dfx Voodoo 4/5 card? Too bad it just didn't happen for them.
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