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Technology Stocks : Intel Corporation (INTC)

INTC 35.75

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3:59 PM EST

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To: Paul Engel who wrote (81462)	5/24/1999 5:16:00 PM
From: grok	of 186894

Re: <Sony can afford to give away $100 ir $150 initially with each machine. The Japanese industry is quite adept at cost-reducing a product over time - and shrinking the die sizes from 0.25 to 0.18 to 0.13 micron feature size will, in time, bring the cost of machine production into a break-even, or profit, situation.> This can go either way depending on how they play it. Best way would be to position the Emotion Engine as a highend or arcade product for the next several years and use it as "prestige and roadmap" while continuing to sell PlayStation I (which has huge sw base). Then start moving EE into mainstream in about 2001 when it has been shrunk a couple of times. Worst way would be to rush it into mainstream immediately, kill demand for PS1, and not be able to deliver EE for a couple of years at competitive prices. Based on the current rhetoric, it sounds like they are pushing option 2. But I doubt that they are that dumb.

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