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Technology Stocks : Intel Corporation (INTC)

INTC 40.51

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To: Road Walker who wrote (151666)	12/7/2001 5:34:57 PM
From: wanna_bmw	Read Replies (1) of 186894

John, it's not that a faster CPU would render an games inoperable (except maybe a few that rely on strict timing - these are rare, but it happens). I was trying to give a general rule about consoles. The important thing about CPUs is that a faster megahertz CPU (like a Pentium 4) will obviously have to be renegotiated in terms of price. It's likely that Intel wouldn't want to sell Microsoft a Pentium 4 for the same price as a Pentium III. Even a few dollars more adds a lot of cost when spread out over the millions of units. Console manufacturers are very sensitive to changes in component costs, since margins are razor thin to begin with. A few years down the line, Microsoft won't be able to get away with pricing their unit at $300. In a few years, they may have to price it at $150. Certainly, a faster CPU wouldn't add any value to old games, and not enough developers would begin writing new games to take advantage of the newer power because of the already large installed base. Therefore, Microsoft has no reason to ever upgrade the CPU until the X-BoxII comes out (maybe in 5 years). wbmw

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