The real issue is who and what is driving the market? Niche products can be very profitable and sometimes I have niche needs. Matrox has been very profitable in their niche.
Actually they haven't been VERY profitable in their niche, just stable profitability. Very profitable is the low-end and OEM stuff which they have little of. Their profit or margin per unit is good, but their overall ROI is low.
Everyone wants to be the big dog in the big market but eventually that market gets wittled down.
And eventually the Big dogs goes after the little dog's niche and will hemorrahge money to do it. Expect Matrox to lose alot of business in the display market in the future because ATi/nV/SiS/Intel are all going after the traditional Matrox market, and their smaller niches will not provide enough revenue to survive. Matrox is moving to capture/editing-solutions, more than just display cards. nV is even going after Matrox and Chyron's pro market.
Matrox saw this a few years ago when it got blasted on delivering the Parhelia with too little too late.
The Parhellia was better than the R8500, and competative with the GF4ti (with more features than both).
The have changed their business plan and done very well in Video and 2D imaging.
For now, but they are simply staying afloat, and if the big booys target those markets, buy buy Matrox. The X1300 on PCI , AGP and PCIe is a wake up call IMO, providing more video option than the P and G series, and the M is being attacked by these products and the FireMV ones.
If the general PCI video card manufacturers would raise the level of their PCI cards to work at that level their could be an increase in PCI video cards.
Why bother? PCI 2.3 requires motherboard redesign so why not simply go with PCIe, most new workstations have at least 1 PCIe slot nowadays, and most have the old AGP PRO 4-8X 50/110.
They would work at the same level as an x1 PCI-Express video card which are rare but expensive.
They are no longer expensive, and not that rare;
http://www.newegg.com/Product/Product.asp?Item=N82E16814161017
FireMV is expensive @ $400, but on X1300 @ $100 a pop, you get dual link DVI unlike the base Matrox P series PCIe 1X.
But for basic 2D and 3D which is what Matrox does, this X1300 is cheaper and better than most;
http://www.newegg.com/Product/Product.asp?Item=N82E16814102001
The only area Matrox still owns is PCI-X, and then great multi-mon software.
Next barirer for Matrox, not one of their card will be compliant with Vista's AeroGlass, thus reducing their market ever more.
For me the beauty of it would be you could have 2-3 busses operating at much higher rates and be seperated from each other. Those 3 busses being
PCI-E/16 lanes@250MB/s per lane,
PCI-X/133Mhz * 64bit,
PCI/ 66Mhz * 32 bit
Why bother separating them since if you have PCIe and PCI/PCI-X likely the PCI/PCI-X are running off 1 PCIe lane anyways. Persoanlly I'd prefer 2 1X PCIe + 1-2 PEG 8-16X for such a system.
You woud think that the new ASUS workstation boards would have done this but the P5WDG2-ws-Pro has PCI-X but the 2 PCI slots are 33Mhz
The ASUS P5W64-WS Pro has 4 PCI-E slots and 2 PCI slots running at 33Mhz.
Reinforcing the end of PCI other than standard PCI. PCI2.3 makes little sense, just like PCI-X 533, no point anymore. And alot of 2.3 like on the Tyan boards are also showing as 32/33.
Machines like this are not unheard of in financial circles and the scientific arena. some of these machines have 20 monitors.
In which case you'd be better off with something more along the lines of a Tyan board with many PEG slots and many PCIe or PCI/PCI-x slots.
Niche, YEAH, But a profitable niche
Profitable in indiviudal terms, but not profitable when seen overall for the business, and it's owning a dying niche for now pfotiability is evaporating fast. They will have a 'maintain' strategy for people who already have MAtrox, solutions, but that only works for so long.
Matrox needs new hardware to continue to be a viable entity, and I say that as someone who loves Matrox.