Shares in UK specialist three dimensional chip maker VideoLogic Group Plc were riding high at the end of last week following news that its new PowerVR 3D graphics chip will be used in Sega Enterprises Ltd (CI No 3,416). Speculation alone sent shares rising at the beginning of April when it was rumored that VideoLogic was about to clinch the deal (CI No 3,380), with 3.5 million shares being traded in one day. As we went to press on Friday shares were trading at 91 pence remaining flat from the previous day, which saw a rise of 7.4%, or 6 pence, a far cry from its year low of 43.5 pence. Sega will use the new chip in its new Dreamcast video console machine, which will use Microsoft Corp’s Windows CE operating system and Hitachi Semiconductor (America) Inc’s 64-bit SH-4 RISC chip.
