According to an ex-3dfx engineer, the situation wasn't that bad. It was a few (about 4) months to launch of new architecture (they had working silicon, there's a lot of in-game screenshots taken on it - something we can't say about another current unreleased product), UMC was willing to give them a loan and the only problem were stockholders which became scared and sank them.Nvidia didn't really buy 3DFX. They waited until 3DFX was dead and then picked over it's corpse.