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Politics : Formerly About Advanced Micro Devices
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To: Petz who wrote (77442)10/27/1999 6:55:00 PM
From: Tenchusatsu  Read Replies (2) of 1573655
 
Petz, I agree regarding the marketing advantage of labeling things "Athlon-optimized." However, MS' Gamebox isn't exactly a high-margin market for AMD. On the contrary, even if MS sells the Gamebox as a loss leader and makes up for it in software (assuming they can, which is also very unlikely due to the open nature of the PC platform), AMD will have to sell Athlons to MS at rock-bottom prices. Remember the last time AMD tried building a business model around selling processors at rock-bottom prices?

I'm sure we can go round-n-round with retorts like "Oh, the Gamebox is just a novelty," or "AMD will make up for the losses with sales of high-end Athlon Ultra," or "AMD just doesn't have the manufacturing capacity, even with Fab 30," etc. But each answer just leads to even more questions. That's why I have a tough time seeing how this Gamebox can be considered a good thing for AMD, at least in practice.

Tenchusatsu
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