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Politics : Formerly About Advanced Micro Devices
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To: Paul Engel who wrote (97908)3/11/2000 4:02:00 AM
From: Petz  Read Replies (2) of 1571004
 
RE: Intel's X-Box donation to M$, here's the facts:
1. Gaming Consoles is a new market for CPU companies and M$ is a new customer for CPU chips.
2. Intel will be selling CPU's to M$ for less than XX. XX is probably < $30. AMD knows what XX is.
3. Since the specifications for the XBox CPU state that it must have a 128K L1 cache, Intel will have more development expense than AMD to produce the chip
4. Take 2,3 together and Intel will be selling these CPU's to a new customer in a new market for less than the cost of production. They will be using their monopoly position in business computers to subsidize entry into a new market.

This is the definition of illegal monopolistic action.

If AMD decides to play this card, Intel will lose. The best way for AMD to play is for M$ to find out about a threatened lawsuit of Intel. A monopolist who is already in hot water (M$) can ill afford the publicity of aiding another monopolist. That wouldn't please the judge too much, don't you think?

Petz
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