This is a very interesting article on ATYT and how their stock may be oversold right now. There are some points I agree with like why the stock is down.
ATI forecast that its third-quarter earnings for the three months ending in May, would come in at $530 million--5% lower than its previous outlook. The company also lowered its forecast for the fourth quarter saying that revenue would come in around $600 million, down from an expected $659.8 million.
This is due to the console switchover. I am still thinking that the Xbox360 to be a huge seller this holiday season so they should get things sorted out by 1st Quarter of 2006. Their growth going forward though from putting high def video chips in cell phones for cameras is spot on. That will be a growth driver I should think. I don't agree with this possible assesment just from my experience as a gamer:
But while camera phones are a big opportunity for ATI, putting video graphics chips into cell phones, thus turning the cell phone into a platform that can handle, in a superior fashion, applications such as 3-D mobile gaming.
I really don't think that 3-D mobile gaming on a cell phone is going to take off. The screen is almost always fairly small and the controls will be hard to use on a small item like a cell phone. Strategy and puzzle games work on a cell phone and seemd to be selling fairly decently.
An actual twitch shoot-em-up like Halo 2 or Half-Life: Source will be very hard to control and would be even harder to see the people you are trying to shoot at. Maybe Japanese and Korean gamers are different and can handle playing Halo 2 on a tiny 3" screen but I think most first person shooter gamers need a big display and confortable controls in order to get some decent frags.
I think this is the same thing as watching TV on an Ipod. A great idea in theory but not so great idea in practice.
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