Intel Corporation (INTC) Message Board

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Technology Stocks : Intel Corporation (INTC)

INTC 37.81

-4.3%

Dec 12 9:30 AM EST

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To: wanna_bmw who wrote (151872)	12/10/2001 1:49:57 AM
From: Elmer	Read Replies (1) of 186894

Maybe you're right. But what you seem to want to conclude was that since MSFT had to go to INTC for a reliable supply, INTC had some kind of leverage concerning the price it would fix on the X-Box CPUs. I think there is a danger in assuming this The HemDroids didn't find any danger in assuming Intel was losing money on each Xbox processor. My point is simply that Intel wasn't forced into a position where they had to sell at a loss. MSFT needed Intel as much as Intel needed them. won't want to alienate Microsoft by charging unfair prices. Nor does MSFT want to alienate Intel. But the way the HemDroids portray it, they think Intel licked MSFT's boots just to get the design win. Nothing could be further from the truth. My guess is that Intel is selling the X-Box chip for about $40, and that will drop to probably $30 over the lifetime of the X-Box system. So you're saying Intel is getting more for Xbox than AMD is now getting for their Durons. Plus in the future Intel will get more per Xbox that they would get from a chipset using the same process. Does this sound like a loss for Intel when they had to keep the process alive anyway? EP

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