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VisionTek Went Bankrupt. NVIDIA Shocked
Who would have imagined in 1998 that 3dfx will be finally bought by NVIDIA? Seeing quite aggressive new company on the graphics card market called VisionTek a year ago, I could not imagine that it will become bankrupt this Summer. Apparently it is true. As I have understood from this and this news-stories, last week VisionTek gave its already ex-employees their severance cheques and ceased all the operations.
The bank VisionTek owed money to decided not to prolong the credits and now in process of liquidating the company. As stated by some sources, creditors are now very strict with the debts they consider bad and in case debtors cannot pay everything off and do not have clear prospects, such company will be closed down. Computer market and especially retail computer-components market is very weak this year and keeping in mind VisionTek`s marketing policy, some may doubt that this company will be able to get out of debts in the nearest future.
We should not accuse the current managing board in incorrect way of working as they had made everything they were able to in order to rescue the company. Earlier this year VisionTek outsourced its manufacturing to a partner in Asia and tried to enter the Western-European market. They even launched a family of optical drives in order to expand their market presence. Nothing has eventually helped VisionTek and as we see now, the company is unable even to prolong its life somehow.
The reason of this Northern-American company to be so unfortunate is in their business approach, as one of analysts told me. As we know, they sold cheap, if not the cheapest, graphics cards in the USA and if the ones were really made in the USA, the profit margin of VisionTek was not high enough. As the market situation continue to worsen, their income slide down even more. In the end, the company was not able to pay for the manufacturing and was finally caught by its creditors.
Although not very lucky, VisionTek was the main supplier of NVIDIA based graphics cards on the North American market. At the moment NVIDIA is shocked by the fact the company will be liquidated. Our sources confirmed that Santa-Clara based GPU-developer was going to persuade the bank who owns VisionTek to sell the company "as is" so not to impact retail sales of its graphics cards. In case there will be no interested companies to buy the remaining assets of the Number One NVIDIA based cards retailer, the latter will offer a major computer-component maker from China to buy the trademarks of VisionTek and start selling graphics cards under this brand.
Who would have imagined in 1998 that 3dfx will be finally bought by NVIDIA? Seeing quite aggressive new company on the graphics card market called VisionTek a year ago, I could not imagine that it will become bankrupt this Summer. Apparently it is true. As I have understood from this and this news-stories, last week VisionTek gave its already ex-employees their severance cheques and ceased all the operations.
The bank VisionTek owed money to decided not to prolong the credits and now in process of liquidating the company. As stated by some sources, creditors are now very strict with the debts they consider bad and in case debtors cannot pay everything off and do not have clear prospects, such company will be closed down. Computer market and especially retail computer-components market is very weak this year and keeping in mind VisionTek`s marketing policy, some may doubt that this company will be able to get out of debts in the nearest future.
We should not accuse the current managing board in incorrect way of working as they had made everything they were able to in order to rescue the company. Earlier this year VisionTek outsourced its manufacturing to a partner in Asia and tried to enter the Western-European market. They even launched a family of optical drives in order to expand their market presence. Nothing has eventually helped VisionTek and as we see now, the company is unable even to prolong its life somehow.
The reason of this Northern-American company to be so unfortunate is in their business approach, as one of analysts told me. As we know, they sold cheap, if not the cheapest, graphics cards in the USA and if the ones were really made in the USA, the profit margin of VisionTek was not high enough. As the market situation continue to worsen, their income slide down even more. In the end, the company was not able to pay for the manufacturing and was finally caught by its creditors.
Although not very lucky, VisionTek was the main supplier of NVIDIA based graphics cards on the North American market. At the moment NVIDIA is shocked by the fact the company will be liquidated. Our sources confirmed that Santa-Clara based GPU-developer was going to persuade the bank who owns VisionTek to sell the company "as is" so not to impact retail sales of its graphics cards. In case there will be no interested companies to buy the remaining assets of the Number One NVIDIA based cards retailer, the latter will offer a major computer-component maker from China to buy the trademarks of VisionTek and start selling graphics cards under this brand.
