Intel Corporation (INTC) Message Board

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Technology Stocks : Intel Corporation (INTC)

INTC 40.51

+0.4%

Dec 9 3:59 PM EST

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To: Elmer who wrote (151845)	12/9/2001 10:59:43 PM
From: wanna_bmw	Read Replies (1) of 186894

Elmer, I doubt Intel is making much on the X-Box chips, but I doubt they're losing money, either. With game consoles, individual components are usually sold at commodity prices. I have no doubt that Intel limited the L2 cache of the X-Box CPU so that it resembled a Celeron enough to justify the lower price. A quick look to Pricewatch will confirm that Intel is selling 733MHz Celeron CPUs for around $40 a piece - the X-Box CPU is probably close to the same price. The point of getting the design win was to open up new markets for their CPUs, and to prevent the design win from going towards their competitor. I don't doubt that Intel had to make the price favorable in addition to insuring .18u capacity for five years. wbmw

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