Finally - No Fear Graphics

So who's afraid of the big bad IGCs? No one. 3D/Creative Labs and Matrox have no interest in the low-end, and everyone else has a product for that segment. Will Intel dominate the IGC market? No, unless they strong arm the ODMs and/or cut prices to below costs. Every supplier has a superior product performance-wise to Intel's i845G, and most can meet or beat Intel on price. Will Intel sell a boatload of i845Gs? Does the sun rise in the east? Intel could sell boatloads of chips that didn't have pins on them its sales and marketing teams are so powerful.

Let's do some rough math.

The IGC/IGP segment will take an average of 34-percent of the market. The IGC/IGP segment will be shared among six suppliers. The IGC/IGP segment has the lowest ASP (average selling price), less than 20% (or more) that of an average to good GPU, and less than 50% (or more) that of a DirectX 8.1 - 9 GPU The IGC/IGP has the lowest margins, less than 20%

Does this look like a market segment that's going to put companies like 3D/Creative Labs, ATI, Matrox, or Nvidia out of business? Not likely.

Is this a market segment that will grow? Absolutely. But, it will not assimilate the high-end until the chip suppliers move their IGPs to the state-of-the-art process, and CPUs move to high-speed front ends like HyperTransport and PCI Express (3GIO) that can take advantage of high-speed (and dual channel) DDR memory. That will take a few years.

And as the IGP market develops most of the current GPU leaders today will be in it. As Pogo (an old cartoon I used to read) once said, "We have met the enemy, and we is him."

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