Channel Chief
 “Gaming market needs right infrastructure”
Michael Chiu, Chairman and CEO, Pine Technology the maker of XFX graphics card spoke to CRN Executive Editor Dhaval Valia about the company’s recent foray into ATI graphics market and discussed his outlook for the PC gaming market
What are the reasons behind XFX's launch of ATI chipset-based graphics, considering that it’s been doing extremely well with Nvidia?
As a leading graphics cards brand, end-users always expect us to provide them with the best technology options. In fact, our partners and consumers have been asking us to launch ATI products. And by fulfiling this expectation, we have also created more business opportunities for our partners.
What ATI cards are currently available from XFX?
We introduced ATI cards last quarter in India and the response has been overwhelming. The 4850 and 4870 cards have a mass appeal, and have won awards worldwide. Technically speaking, some of ATI products are very good as they include DirectX 10.1 solution and built-in HDMI capabilities, thus do not require additional cables.
Currently, there are seven ATI models available ranging from the entry-level HD 4870 at a price of Rs 1,100 to the high-end HD 4890 available at Rs 15,250.
How do you plan to popularize ATI-based products?
We have a strong network of partners and several channel marketing programs. Since the launch, we have been running an aggressive awareness campaign for ATI products using point-of-purchase innovations and advertising.
Key XFX partners across India have been equipped with information to help customers choose the best value-for-money XFX graphics solution, thus striking a balance between push and pull strategy. In addition, we have conducted several dealer meetings over the last few months to launch and popularize the new ATI models.
What is your outlook for the discrete card market in India in 2009?
The discrete graphics card market in India is growing but at a slower pace than anticipated. The on-board market still occupies 90 percent of the total share. We estimate the total graphics card sale in India to be 35,000 units per month. Of which 60 percent contribution is by mainstream cards, the performance category contributes 30 percent and 10 percent by the enthusiast category.
What can Indian channels expect from XFX over the next 12 months?
XFX as a brand is known for its overclocking abilities. And end-users in India will continue to enjoy our Extreme editions, XXX editions and the Elite Black edition. Apart from innovative cooling solutions and impressive looking cosmetics (our X-shaped box), these cards are the best that gamers can get. The channel can expect more such high-end products based on both ATI and Nvidia technology.
As a market leader, what initiatives are you planning to help boost the Indian gaming market?
We believe that the gaming market in India is growing, but at a slower pace. The right infrastructure has to be in place, like affordable broadband connectivity and exclusive gaming parlors.
We are seeing a lot of activities like events and rewards programs take place to promote gaming in the country. However, more needs to be done to increase the mass interest in PC gaming.
In other parts of the world, PC gaming is recognized as a professional sport and is an integral part of the entertainment industry. We at XFX are trying to create awareness about PC gaming and its strong link with the graphics capabilities of the PC. For instance, to promote the DirectX10.1 technology found in ATI graphics cards the XFX 4890 is bundled with a game called HAWX that works optimally with DirectX10.1.
Is XFX looking to beef up its post-sales support?
The plan to launch a toll-free post-sales support in India is in the pipeline. We will talk about it once it is rolled out.
What is your global economic outlook and when do you see the economy reviving?
While this is very hard to predict, let’s just say that the worst is over. At XFX, our fiscal year ended in June and we have started July with high hopes and set higher targets for the current year. So far, July and August have been quite promising and are definitely showing signs of recovery.
This year Windows 7 is being launched. And we all know, new technology creates new demand. There will be lots more in the offing: launch of DirectX 11 and introduction of 40nm graphic chipset.
What are your predictions for PC and graphics market?
Overall, the demand for desktops is slowing and netbooks are becoming increasingly popular. Small form factor desktops and notebooks are showing a great promise too.
However, I don’t see these trends having any impact on the discrete graphics card market. Enthusiasts will still buy desktops with powerful graphics card for editing videos, playing games, watching HD movies etc. |