Creative Technology Limited (SGX: C76) NASDAQ: CREAF is a listed manufacturer of computer multimedia products based in Singapore where the firm was initially founded by Sim Wong Hoo (born 1955) on July 1, 1981. It has more than 5000 employees worldwide. Sim still acts as CEO of the company. The US subsidiary of the company is known as Creative Labs, Inc.
The company began as a computer repair shop, where Sim developed an add-on memory board for the Apple II computer. Later, they started creating customized PCs adapted for the Chinese language. A part of this design included enhanced audio capabilities, so that the device could produce speech and melodies. The success of this audio interface led to the development of a stand-alone sound card.
In 1987 Creative released a 12-voice sound generator sound card for the IBM PC architecture, the Creative Music System (C/MS), featuring two Philips SAA 1099 chips. Sim personally went from Singapore to Silicon Valley and managed to get RadioShack's Tandy division to market this card. The card was however not successful and lost the competition against the AdLib card which was using the Yamaha YM3812 chip (also known as OPL2). In addition to being a capable gaming card, the AdLib version was also a passable music synthesizer, which was a task the C/MS could not do.
Later, another attempt was made with the Sound Blaster, a card featuring the same chip as found on the AdLib card and with additional digital audio capabilities for playing and recording digital samples. Creative used aggressive marketing, like calling the card a "stereo" component even though the C/MS components offered stereo, or calling the sound producing microcontroller a "DSP", hoping to associate the product with a digital signal processor. This card soon became a de facto standard for sound cards in PCs for many years, mostly by the fact that it was the first to bundle what today is considered as part of sound card functionality: digital audio, onboard music synthesizer, MIDI interface and a joystick port.
Currently their most lucrative products are probably the Creative NOMAD/Creative Zen digital audio players, which competes with iPod and other players. The SoundBlaster line still exists, and has been joined by other sound card lines, including the Audigy, Audigy 2, Audigy 4, and the X-Fi Line.
The soundcard market continues to be a solid performer for Creative Labs even with the inclusion of onboard sound on most PCs, some even featuring 7.1 sound. The continued success is due in part to the better sound quality and richer features of a "add on" sound card. In fact, Creative Labs Audigy 2 line featured the first sound card to be "THX" certified. The X-Fi line was launched in 2005, with four variation of the product, including X-Fi Xtrememusic for entry level, X-Fi PLatinum, X-Fi Fatal1ty which is named after professional gamer Johnathan Wendel and features 64MB onboard RAM. Creative's flagship product is the X-Fi Elite Pro.
The modern Creative Labs has diversified considerably; Their products include large lines of MP3 players, speaker systems, webcams, video cards, networking components, and even a Liquid crystal display (LCD). As a corporation, Creative has recently met with some stiff competition. In July 2005, Creative Technology's shares plunged to an all-time low of USD 10.80 per share as a result of poor sales in the 4th quarter of 2004 / 1st quarter of 2005 despite a USUSD 100 million campaign to take on Apple Computer and the highly-successful iPod range. This represents a significant change from the USD 50 their shares commanded in 1998. In August 2005, it was announced that Creative's losses for that quarter amounted to USUSD 31.9 million, going into the red for the first time in three years.