3dfx was a favorite company of gamers in the mid-1990s, but the company then delayed a few products and received tepid reviews for others, crimping sales. In recent years, the company changed CEOs and began laying off employees.
"I'm sad that 3dfx is exiting the business," said
MicroDesign Resources analyst Peter Glaskowsky. "3dfx did a lot of good work over the years, but unfortunately they didn't keep up with the good work Nvidia was doing."
Nvidia has become the company to beat in graphics over the past few years, fueled by strong sales and premier design wins. In November, the Santa Clara, Calif.-based company passed ATI Technologies to become the top manufacturer of graphics chips, according to Mercury Research. Production and performance are the company's hallmarks.
"Even if you go back two or three years ago, Nvidia was producing chips at a faster rate than ATI," Glaskowsky said. "They were producing more chips and improving them at a faster rate."