Dan, you're thinking in the short term, as usual. Think 2-5 years down the road, which is when having a million or more .18u X-Box CPUs makes sense. With costs at a minimum, these old, commodity CPUs don't tie up much fab capacity, and they generate a little revenue besides. From an ROI standpoint, Intel is not only guaranteeing themselves a nice NPV, they are also preventing their competitors from getting it, too. As for capacity this quarter, who cares? Pentium 4 is moving towards .13u production, anyway. Whatever fab equipment is being used to manufacture X-Box chips, it will have less to do with Intel's mainstream lines with each passing quarter.
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