Three-Way Chess, Or All-Out FPS Deathmatch?

This is an extended version of the article I wrote for print this month. It's essentially about the tight love/hate 3 way competition between AMD, Intel, and Nvidia.

Things continue to get even crazier -- Should Nvidia think about buying VIA in order to gain an X86 license? Perhaps they should partner with AMD down the road assuming AMD is able to bring their asset light strategy closer to reality... Will Intel get more aggressive? Will Western Digital get taken out?

Stay tuned, in the coming weeks and months I'll write an even longer list of random thoughts, based on what I believe may happen in the industry. ...and now for the article.

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Nvidia seems to be hitting on all cylinders lately. Although ATI comes close with its latest GPUs, Nvidia has had a very good year so far and seems to be on the winning side of a major battle for a significant portion of the PC platform business. The company has moved beyond building just GPUs and is working to build an ecosystem of multiple Nvidia components, including a masterpiece version of its awesome nForce chipset.

It’s no secret that I’m a big fan of nForce; just check out the HP Blackbird, which uses an nForce chipset regardless of whether you choose ATI- or Nvidia-based video cards. I like nForce because it’s rock-solid and manages to milk additional performance from PCs in a way that seems to leave Intel and AMD scratching their heads and asking, “How’d they do that?” Of course, this applies strictly to desktops; Intel’s Centrino platform still allows us to deliver the best all-around experience on a notebook.

As impressive as Nvidia’s chipsets have been so far, though, it’s the company’s next big thing that shows it’s not messing around anymore. Nvidia has drawn up a plan to create an integrated graphics chipset and something called “Hybrid SLI,” which on paper looks really tight. Imagine, if you will, a notebook that allows you to handle everyday tasks such as browsing the Web and checking email using a low-voltage graphics processor that also doubles as a northbridge chipset.

The cool thing about Hybrid SLI is it lets you toss in an additional graphics card that in SLI will work in conjunction with the integrated chipset, yielding some pretty compelling 3D performance. If you decide you want to go even further, you can toss in another MXM chip and disable the integrated chipset for maximum enthusiast SLI performance.

What I like best about this idea is it lets the system save power (and, for notebooks, battery life) when using basic 2D apps and then reactivate the discrete GPU or GPUs when you’re playing a game. It also lets us dream up new ways to actively cool a PC via various grades of cooling, depending on what you’re doing. This type of thinking enables companies like ours to create compelling solutions for our customers, and I commend Nvidia for thinking about new ways to deliver a compelling platform with some flexibility.

The interesting thing about all of this is it seems like Nvidia is taking a shot right across Intel’s bow. I think it’s pretty clear that Nvidia wants to grab a share of a very lucrative space that Intel currently owns—the Centrino platform market. Even more interesting is the fact that Nvidia pulled SLI support from Intel (and competing) chipsets. The company is obviously on a mission to be more than a graphics provider, and it’s taking no prisoners. Nothing seems to phase it, except for what happened in the last couple of weeks, perhaps.

Intel bought Havok, a company that both ATI and Nvidia have been touting as the ultimate physics solution. The same company that both ATI and Nvidia have somewhat depended on to deliver more immersive gaming experiences.

That in itself is a statement, wouldn’t you say?

I mean, what other reason would Intel have to acquire Havok? I’m sure there’s more than one, right? Take a minute to list them off and email me, would you?

Whatever Intel’s reasons are, the three-way chess match is about to turn into a multiplayer FPS deathmatch. You’ll soon see other technologies introduced in the “platform” space, and companies that you would least expect will start to toss their hats into the ring.

Solid-state disk tech, for example, is something that we can all see in our crystal ball as the future of mass storage technology. SSDs will allow for faster boot times, smaller form factors, lower power consumption, and ultimately better reliability. The intriguing thing about solid-state is you don’t have to be Seagate, Western Digital, or Hitachi to be an SSD player. You don’t need spinning disks . . .

Very interesting, if I do say so myself, and, um . . . I just did.

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HP Gaming at E for All

Someone from the crew just sent me this image of HP Gaming at E for All. Looks like a nice setup! I wish I could be there :)

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HP vs Dell Philosophies on Gaming & Innovation

There is a very interesting article over the the Adrenaline Vault on the "Mainstreaming of Boutique Gaming Computers". Bob Mandel performed an interview with us, and he also did the same with someone at Dell. Putting the competitive nature of our business aside, this is an eye opening look at the core philosophies behind both companies. Both have their own merits, and I suppose it’s up to you to be the judge. Below is an excerpt of the article with a link to the full feature...

The Mainstreaming of Boutique Gaming Computers

Written by: Bob Mandel

In recent years, personal gaming computers have penetrated everyday life in unprecedented ways. Because of extraordinary hardware developments facilitating dramatically expanded capabilities, the market has been decisively segmented: large, impersonal hardware companies sell low-end gaming computers to mass consumers for as little as $500 to $700, while small, personal boutique firms sell loaded units costing over ten times that much to high-end hardcore users. Recently, however, a fascinating merging of efforts has occurred between these two types of companies. This article analyzes the intriguing implications for PC gamers, utilizing extensive interview responses from key visionaries at the pivotal companies involved: Rahul Sood, chief technology officer at HP Gaming, and Susan Kittleson, director of global gaming strategy at Dell.


In March 2006, Dell announced the purchase of Alienware, and in September 2006, Hewlett-Packard announced the acquisition of VoodooPC. Thus, Dell and HP, the two largest computer resellers with a traditional focus on mainstream purchasers, each took a major step toward catering to the most demanding high-end gamers. Despite the superficial similarity between these companies’ moves, a crucial organizational difference is evident (aside from the reliance by Dell on direct sales and by HP on retail channels).

Kittleson says, “We think one of the key differences has been that Dell and Alienware have remained largely separate entities” whose high-end computers actually compete for the same market. Rather than pushing an agenda, Dell has allowed Alienware to continue to do what it does best.” In contrast, Sood says, “Right from the beginning, we decided to integrate Voodoo directly into HP. We are working together, not separately, to build this business. I’m not sure how competing against yourself can help.”

After initial forays into the high-end market with the XPS Renegade and the XPS 710 H2C, Dell’s current flagship computer is the XPS 720 H2C (”H2C” stands for “hot to cold” in reference to its water cooling system), whose price ranges from about $5,000 to just over $9,500. After spending over a year in development and canning the Blackbird 001, HP’s just-released flagship computer is the Blackbird 002 (named for the world’s fastest jet, the SR-71 Blackbird), whose announced price ranges from $2,500 to $7,100.

RATIONALE FOR MAINSTREAMING OF BOUTIQUE GAMING COMPUTERS

Generic economic industry incentives provide a first cut at explaining these moves. First, entering these niche high-end markets reaps higher profit margins, as many hardcore gamers appear ready to pay premium prices to get top-of-the-line hardware. Second, since sales predictions for business PCs are much flatter than for gaming rigs (as the machines last longer and the markets are saturated), moving into the high-end market might be the best bet for facilitating continued company growth. Third, developing high-end systems leads to status among consumers as a technology leader, modifying any image of large computer resellers being mundane suppliers of office equipment.

Click here for the rest!

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Win races on Sunday, sell cars on Monday

Here is an amazing story with some historic significance to Ford, Ferrari, and much of the automotive industry. I brought this up over a year ago in an article I wrote for CPU Magazine regarding Ford's first, second, and third place winning entries into the twenty-four hours of Lemans... They actually cleaned up three years in a row before deciding they proved their point.

Jim Glickenhaus, is a discerning automobile collector, and the people over at CirkitVision managed to spend a day with him - and what a day it must have been. Anyone who knows anything about Jim's collection knows that he has some of the most collectable cars ever - so there some great photos at the links below.

Many of you may not know this, but at one point Ferrari was being courted by Ford, and in fact Ferrari was also looking to potentially partner with Ford on the other side of the pond. What ended up happening is a story that has become legend in the world of auto racing, and it changed the face of racing forever.

Though this has nothing to do with the PC industry, there are some profound parallels that can be (and have been) drawn into this space. I love this story so much that I wanted to share it with you, let me know what you think.

There are currently two episodes, I'm anxiously awaiting for episode three to hear about the Italian princess that Henry Ford II was dating at the time of this war.

Check out Episode 1over here and Episode 2over here...

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Encouraging Innovation

I wrote this article for the latest CPU Magazine. Partners like ATI, AMD, Microsoft, Intel, and Nvidia are very important to our industry. Without their push to enable innovation we would live in a very boring place. I think it helps us view a different perspective of our industry if we view them as enablers of innovation rather than the creators of our own innovations.

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Over the years, I have enjoyed watching how the competitive landscape in our industry has changed based on various dynamics and customer needs. We have seen consolidation in some segments, and certain companies have vanished into thin air. We have also seen small, new companies become giants in very little time, including Apple, which at one point was in some rather dire straits and now has a market cap that is much higher than a certain company that doubted them a decade ago. (Hint: this company used to be the No.1 PC maker.)

If there’s anything I’ve learned in this business, it’s that consumers are much smarter than they used to be. In the case of the consumer electronics industry, there is a noticeable difference between the technical knowledge exhibited by today’s consumer and that of five years ago.

Take, for instance, TVs. I remember a time when walking into a Sony store was like a walk into the future, but these days it’s like a blast from the past. In the past, shoppers often largely based their buying decisions on which brands they trusted, but now we see customers basing their decisions on their technological needs and wants. Sony’s executives got a little too comfortable with the power of their own brand, assuming that it would carry the company forward no matter what the competition had to offer—boy, were they wrong! Looking at some of the offerings from Pioneer, Sharp, Samsung, and HP, it seems obvious that the TV market is highly competitive, and only companies who truly understand their customers will know what to do in order to grow their business. Brand is important, but it’s not sustainable unless you continually revisit your brand promise and make adjustments as the market demands them.

As more vendors jump into the PC market, more commoditization takes place. Instead of focusing on the customer, they are focused on “speeds and feeds,” and instead of working to differentiate their products, they depend on partner companies like ATI, AMD, Intel, Microsoft, and Nvidia to innovate for them. The end result of that is what you see in stores every day: rows and rows of boxes with “sticker marketing” and price tags. Sticker marketing is when retail PCs come festooned with branding stickers from Microsoft, ATI, Nvidia, Intel, and AMD.

I understand the purpose of sticker marketing; it helps send dollars back to OEMs so they can offer lower prices and be more attractive at retail. But I believe in the end these programs are actually a disservice both to consumers and to the companies that participate in them. Sticker marketing promotes commoditization and devalues innovation from an OEM standpoint. Instead of focusing on such programs, component companies should probably think about working with OEMs on cool platform innovations so PC buyers can benefit from them.

Don’t get me wrong, these partners are key to our industry, but it’s unfortunate that we depend on these “enablers of innovation” to become “creators of innovation.” After all, these companies are not as intimate with our customers as we are; working with people who buy our products on a daily basis puts OEMs in the best position to know what they really need.

Things seem somewhat dire in certain segments of the market. People are shifting from desktops to notebooks for reasons that have little to do with specs. The best many companies can do to differentiate is to offer higher levels of service or faster shipping, but still something is missing; perhaps the total experience.

I believe, as do many of my colleagues, that the desktop space has tons of room for growth. People talk about “customer experience” without actually thinking about what it means. By simply asking 20 of your customers what they wan.t, studying their habits, and understanding what people complain about, you’ll soon start to remove the clouds that hamper innovation. I also believe that the notebook market will continue to be a major growth segment, but that shouldn’t come at the expense of desktops.

If you’re a regular visitor to this page, you’ll probably see that this all ties together. The PC industry isn’t where it should be today as a whole, but there are small pockets of change at work today, and we’re glad to have been a part of affecting such change.

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