Guillemot, the French company that owns the well-known Hercules graphics cards brand, has pulled out of the crowded graphics card and LCD monitor market.
The company said it had "elected to progressively withdraw from the graphics board and monitor markets which have been producing very weak gross margins". Instead it would dump all its resources into its remaining sound card, speakers and DJ console products.
Ian Medcalf, product marketing manager at Hercules' Australian distributor BCN Technology, said the Hercules range of sound cards were always perceived as quality products and had been successful for the distributor over the past 18 months.
Following Guillemot's decision to exit these markets, BCN has signed to distribute ATI-based graphics cards and ATI chipset mainboards manufactured by CT Technology. The distributor will move these cards exclusively under the MediaMax brand name.
Over recent months, Hercules had experienced some supply chain problems, limiting supply while the product had been out-priced within the world market, BCN said.
"Their pricing hasn't been as competitive as what we would have liked to have seen in the market," Medcalf said.
"We believe that the majority of our Hercules customers will transparently change over to the MediaMax brand which will offer them greater margins and availability," he said.
He said the distributor was aiming to double the ATI-based portion of its business within the next couple of months and have MediaMax as a force in the market within the next six months.
He agreed that graphics card and LCD monitor prices had progressively been driven down. BCN didn't have "a large amount of Hercules" stock remaining. Outstanding warranties would be supported through BCN.
The company also distributes the QDI and Leadtek graphics card brands.