Diamond, which also makes the Rio portable MP3 player and various other products, boasts almost three times S3's revenues. The merger gives S3 a larger revenue stream and gives Diamond better access to S3's silicon design expertise. Diamond's sales channels and brand identity will help S3 with this plan, and allow S3 to diversify into consumer electronics and other non-PC markets. The deal continues an established trend toward greater vertical integration of graphics chip and board makers. 3Dfx recently completed its merger with STB in hopes of competing more effectively with these companies.
Digital photography is important to the microprocessor world for two reasons.
Second, the PC becomes the center of picture viewing and printing for a digital camera user. The latest consumer digital cameras offer 1,600 x 1,200 resolution. Good quality prints can be made up to 8 x 10 inches, meeting the needs of most consumers. The learning curve and the number of separate items I had to buy, as well as the cost, say this technology isn't ready for the mass market. Some problems are easily fixed.