X-bit labs

Guillemot Withdraws from Graphics Cards, LCD Displays Business.

Category: Video

by Anton Shilov

[ 02/25/2004 | 06:00 PM ]

Hercules Computer Technology has been a legendary name in computer world because of the popularity achieved by the original Hercules graphics cards in the early eighties. The company itself was acquired by Guillemot in 2000, who continued to sell some astonishing graphics products under Hercules brand-name. Well, sometimes the legends have to go – Guillemot said that it would no longer sell LCD monitors as well as graphics cards.

Guillemot Corporation has elected to progressively withdraw from the graphics card and monitor markets, which have been producing very weak gross margins, in order to mobilize all of its resources towards the development of markets with strong potential, according to the official statement. In view of the success of the new Hercules music lines and the sizeable demand for its Thrustmaster gaming and mobile accessories, Guillemot Corporation has decided to focus on these product ranges with high added value.

According to sources of Beyond3D web-site, ATI Technologies and Samsung Electronics, which produced graphics cards and LCD screens for Guillemot at its own or affiliates’ facilities, were not willing to let Hercules build and market products according to “the Hercules way”. Graphics cards from Hercules usually differed from reference designs by features and/or performance, while LCD screens usually had stylish and impressive design.

Hercules has been selling exclusively “Powered by ATI” graphics cards. This is not clear how the company’s withdraw from the graphics business may affect ATI Technologies’ sales in the European Union, where Hercules has always been a pretty popular name.

Guillemot Corporation will thus re-centre its activities on new growth markets which will allow the company to best respond to users’ new expectations. The Group has begun adapting its teams and business structures to this new configuration with a view towards profitability.

Guillemot’s Research and Development department is currently at work fine-tuning a range of products employing Wi-Fi and Bluetooth technologies in order to provide a complete solution combining the potential and comfort of use of wireless connections with the quality and ergonomics of Hercules and Thrustmaster.