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Politics : Formerly About Advanced Micro Devices

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To: Joe NYC who wrote (94543)2/22/2000 10:20:00 AM
From: Scot  Read Replies (4) of 1573746
 
Joe, If this thing goes through, half of Dresden fab will be producing for X-Box. With Austin fab going to mostly flash, AMD may need another fab :-)

My question/concern about the X-Box is simply...how is AMD going to make any money? The console could be priced as low as $149, including a hard drive. It seems like we are barely covering costs here, if that. I thought the reason why AMD was in the cpu business is the potential for significant margins. Am I off-base here?

-Scot
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