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Technology Stocks : Intel Corporation (INTC)
INTC 40.03-1.3%Dec 1 3:59 PM EST
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To: Paul Engel who wrote (151998)12/11/2001 10:26:36 AM
From: SilentZ  Read Replies (2) of 186894
 
Paul-

>Intel makes a real good profit on XBOX chips.

Just wondering- any numbers on that?

If you're wondering where I base my assumption that Intel may be losing money on the chips for the XBox, it comes from three points (which I've scattered on this thread thus far):

1. I really don't think that MSFT would've sold out AMD at the last minute if it weren't for a cost savings factor. If Microsoft weren't really planning to use AMD chips, they wouldn't have fitted the prototypes with them.

2. I don't think that Jerry wouldn't have beaten Intel's eleventh-hour bid to Microsoft unless it came down to selling below cost.

3. It doesn't matter to Intel whether they lose a bit of money on chips for the XBox- if they lose money, whatever that amount is is worth far less than the prospect of AMD gaining the mindshare of the public and brownie points with Microsoft. It was a great move by Intel.

-Z
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