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Politics : Formerly About Advanced Micro Devices
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To: Scot who wrote (94546)2/22/2000 11:07:00 AM
From: tejek  Read Replies (1) of 1573909
 
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, by the time the X-box goes into production....assuming that it does....the lower end Athlons (up to 650)which are the ones I would expect MSFT to use probably will go for $35-50 and the X-box will be useful only in that it will keep demand high which, in turn, will lower production costs. Keep in mind someone predicted that the 750 will be at $35 in a year.....and they may not be that far off given the Mhz/Ghz competition betwen Intel and AMD.

Plus I think your console price is a little low....$300 more likely.

ted
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