Silicon Graphics Inc has delayed its Strategy 3 announcements from later this week until August 10, when it is now due to reveal the next stage of its turnaround plans to analysts. Although SGI won’t say what its plans are until then, early reports are now suggesting that it is high-end graphics projects that will be cut. SGI is already said to have laid off engineers working on high-end graphics projects, and is said to be backing away from its part of the Microsoft Corp-led Fahrenheit project. Project leader David Story left the company yesterday.

Last month, SGI settled its patent dispute with Nvidia Corp, and signed cross-licensing agreements. Nvidia has also been working on the Fahrenheit API, which combines elements of SGI’s OpenGL and Microsoft’s Direct X, and is expected to emerge as part of the Direct X 8.0 API set. SGI is said to be transferring engineers working on mid-range graphics projects over to Nvidia. Other possible casualties of SGI’s reorganization are Cray Research Inc and Alias/Wavefront.