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Old May 24, 2004, 08:18 AM   #1
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TerraTec to pull out of graphics card business

Multimedia experts claim that market sector leaves little room for independent vendors

TerraTec Electronic (www.terratec.co.uk), a leading European multimedia manufacturer, has today announced its intention to pull out of the graphic card business, adding that it will not incorporate the previously announced new boards from ATI and nVidia into the company's portfolio. Although TerraTec has vowed to continue to support legacy customers, General Manager Heiko Meertz believes that problems will be inevitable if ATI and nVidia are the only surviving graphics brands.

"Chip suppliers aren't leaving us enough room to breathe in this market sector. ATI
and nVidia are seeking recognition as autonomous brands, and are therefore waging war on each other," says Heiko Meertz, General Manager of TerraTec Electronic. "It remains to be seen if this development in the graphics card market will be well-received by retailers and customers, but as far as we are concerned, it is time to say goodbye."

According to Meertz, independents such as TerraTec and, in the past, Hercules, have been left without any real market opportunities. Meertz claims that is no longer possible to influence any of the products being built by the graphics card suppliers, and is therefore unwilling to release them using the TerraTec brand name.

Meertz's outlook for TerraTec remains bright, however, since graphics boards were only ever intended as an additional avenue for gaining a foothold in the gaming market. The Mystify brand and TerraTec's other gaming products will not be affected by the departure from the graphics card sector. The company will continue to push its existing products, such as mice, case modifiers, headsets and water cooling units, under the Mystify brand name.
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