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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 259.65

+2.3%

Jan 23 9:30 AM EST

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To: Jim McMannis who wrote (80005)	5/13/2002 6:30:35 PM
From: greg s	Read Replies (1) of 275872

Son of Xbox cheap and cheerful? Race to cut costs, prices By Mike Magee, 13/05/2002 16:06:35 BST OVER AT THE also very spicey Digitimes today we learn that Microsoft will push its suppliers of DVD drives down by around 30 per cent, as part of a general cost cutting exercise before.... ....it says, the Xbox 2 is launched in September. Digitimes calls it the "second generation Xbox", and put together with all the other gossip over the last month or two, this makes for a really interesting picture. The price cuts, and the need for Microsoft to find cheaper components to compete with the ever popular Sony PlayStation 2 and the Nintendo Gamecube, underline that the console market is a terrible place to be in. Nevertheless, Microsoft said before launch in the US last year that it knew it had to be there for the duration, and it's only conjecture how many millions it's expended on the product so far. Both Nvidia and Intel, which supplied graphics chips and processors for the first Xbox, don't seem to be particularly ecstatic about sales so far – the latter reported in its most recent financial report that the Pentium IIIs it is supplying to Microsoft show "flat growth". Microsoft itself does not anticipate now it will sell more than four million Xboxes this year - its overly optimistic target before launch was for six million units. µ theinquirer.net

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