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October 6, 1998

SILICON GRAPHICS BUYS INTO REAL 3D FOR PC GRAPHICS

By CBR Staff Writer

Silicon Graphics Inc has taken a minority stake in Real 3D Inc, and says it will use the Orlando, Florida-based company as its preferred supplier of graphics technology for future visual computing products, likely to be its Intel-based personal workstation line. Details of the investment were not disclosed, but SGI is thought to have taken around 10% of the company. Intel Corp – with which Real 3D collaborated on the development of the i740 chip – already owns 20% of the company, for which it reportedly paid around $40m at the beginning of the year (CI No 3,327). Real 3D was a spin-off from Lockheed Martin Corp, which remains the majority owner of the company. Real 3D also has a technology licensing and development agreement with games company Sega Enterprises Inc. SGI says it will collaborate with Real 3D on future software technologies and initiatives, and assist in the marketing of Real 3D’s content creation hardware, such as RealScan 3D. It’s part of SGI’s effort to broaden out its product line away from its traditional market of high-end workstations. The agreement also settles litigation between the two firms under a newly signed royalty-free cross-licensing deal over patents.

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