Graphics chip maker 3Dfx Interactive Inc warned that, due to a greater-than-expected seasonal slowdown in the retail channel, its third quarter will see a loss of several million dollars at the operating level. The San Jose-based company said that retailers haven’t been able to move enough of the Voodoo2 product to salvage the quarter. 3Dfx figures the stalled inventory will move quickly enough, however, once the holiday buying season kicks in. It still anticipates a profit for the third quarter, as well, thanks to the recent litigation settlement with Sega Enterprises Ltd, which it had sued for breach of contract following Sega’s abandonment of an arrangement which had 3Dfx working on a chip for Sega’s next-generation game console. The amount of the settlement was undisclosed. The company plans to release full results for the third quarter on October 15.
