Formerly About Advanced Micro Devices Message Board

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Politics : Formerly About Advanced Micro Devices

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To: Tenchusatsu who wrote (77474)	10/27/1999 10:24:00 PM
From: Goutam	Read Replies (1) of 1573849

Tenchusatsu, <That can lead to a manufacturing cost of $40 to $50 per processor. If the selling price is $50 to $60, that's only a $10 margin per processor. That's a very poor margin for a company with limited manufacturing capacity There would be plenty of capacity by the time frame (Q4 of the Year 2000) that MS is looking into. What if it is $20 margin per processor, won't it change the picture dramatically? <But it's not going to work that way for MS or AMD. AMD can't support the volumes and MS won't have the licensing fees (because of the open nature of the PC gaming platform). > MS is going to use an hybrid OS of WIN98 and WIN NT. Besides, it's going to be their hardware. MS can add the licensing fees hook just by making recompilation necessary for the existing PC games to run on the game box. <Why would AMD want to divert a significant chunk of their limited manufacturing capacity toward a low-margin Gamebox?> Did you notice that you justified all the three point you made in your post based on the assumption of AMD's limited capacity by the fall of year 2000 ;^) regards, Goutama

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