| Market Overview:
The market today consists of approximately 4 Graphics hardware manufacturers (Microchips) and ca. 10 operating systems
manufacturers.
Since 1995, 3D-Graphics have been accessible for
the consumer markets.
Several software libraries and graphic chips
enabling the development and visualisation of 3-dimensional computer graphics
for the home PC subsequently emerged. Essential to this development was
the decline in the cost of production for graphics chips, combined with
technology innovations in the field of chip design, miniaturisation and
higher density structures which offered new functionalities and higher
speeds.
Over the years ever more functions were combined
onto single chips which enormously increased the speed and accuracy of
imaging. Todays graphics chips differ only minimally from eachother.
This is due to the fact that the basic algorithm
(„Z-Buffer“) applied has remained the same over the years. This algorithm
was continually “bloated” by manufacturers with additional functionality
which could be rapidly imitated by competing manufacturers.
In the final analysis, it is irrelevant to the
customer which chip is integrated into his/her PC as long as the accompanying
software is easy to install and simple to use.
In recent months this situation led to a reduction
in the number of graphics chips/boards manufacturers, as competition hardened
on account of the increasing similarity of the offers a price war
emerged where the lowest price wins.
The market accounts for approximately 200 million
graphics chips per annum. Market share (on "standard graphic chips") is
decided by fractions of a Dollar per Chip (a few cents on chip prices of $5 to $40).
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