Silicon Graphics shuts 3D Web development centre

Silicon Graphics is to close down its Cosmo software division to concentrate on workstations and servers.

SGI spokesman John Thompson stressed that the decision is not intended to reflect badly on the Virtual Reality Modelling Language (VRML) that Cosmo pioneered.

Silicon Graphics has tried for at least three months to sell Cosmo, as part of a cost-cutting strategy following the firm's $153m (£93.4m) third quarter loss. Sony was interested, but it reneged on a letter of intent at the last minute, Thompson said.

VRML, an open standards platform, is still supported by developers such as 3D Labs, Intervista Software and Microsoft. But its Web presence has been overshadowed by proprietary technologies such as Real Networks' Real Player, and Macromedia Flash and Shockwave, which have stronger commercial backing.

Cosmo's product range includes Cosmo Player 2.1 for viewing VRML 2.0, Worlds 2.0 for building VRML-based Web pages and PageFX 1.0, which was launched just last month, for designing interactive graphics.

The fate of Cosmo products has not yet been decided.