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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 221.06-1.1%Jan 5 3:59 PM EST
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To: Tenchusatsu who wrote (58966)10/17/2001 9:02:07 PM
From: Bill Jackson of 275872
 
Tenchu, We may never know the final details of the X-box contract and wehether or not it made Intel any money.
It is quite possible that Intel; did indeed quote a lower price than AMD, a price that even Intel made no money on, even with going to .13 etc.
Intel may have done this as a pure and simple spoiler. Intel is willing to take the loss in exchange for the hurts it would give AMD in terms of game compilers etc, just a business decision.

AMD quoted to make money. Intel was able to beat that on the basis of not making money. In fact the ability to snatch it at the last minute makes me feel it was a deal MSFT could not resist....very very cheap. Remember MSFT loses on every one and hopes to make a $$ on downstream SW sales and royalties, so whan they see a deep price cut they grabbed it.
AMD was unable to match/beat as they did not want the losses or could not bear them as they are smaller than Intel..
Bill
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