From today's news, headline: Pentium II aimed at games market
====================================================================== Intel Corp., the U.S. chipmaker that dominates the market for the microprocessors powering most personal computers, is stepping up production of its flagship Pentium II chip and is to aim it at the games market. Andy Grove, Intel chairman and chief executive, said a new marketing drive based on the slogan ``PC: It's Where The Fun Is'' meant the Pentium II could account for 20% to 25% of Intel's PC microprocessor sales in the pre-Christmas period. The drive will bring the Pentium II into battle with dedicated games consoles such as those from Nintendo Co. Ltd., Sony Corp. and Sega Enterprises Ltd. But Grove said the Pentium II could match them in performance. ``No audience is as demanding of performance as a 14-year-old boy,'' he said. Intel expects Pentium II sales to account for about half its microprocessor volumes by mid-1998, but fourth-quarter sales of the chip should reach 20% to 25% of total volume. ``That is what we are shooting for,'' he said. The Pentium II chip was launched in May, aimed at the market for high-performance business computers. Since then, production volumes have been increased, enabling Intel to reposition PCs built around the Pentium II as high-powered games machines. ``We are starting to communicate the utility and benefits of Pentium II to consumers now,'' said Grove. ``You are going to start seeing TV advertising before the month is out.'' In repositioning the newer chip, Intel also faces the challenge of not choking off demand for its older generation Pentium MMX chips, which were launched in January. ``You are going to get wonderful multimedia performance out of a Pentium processor with MMX technology, particularly the higher frequencies,'' said Grove. ``But Pentium II will provide performance headroom starting where MMX leaves off.'' He acknowledged PCs could not compete with games consoles for ease of use. But he said: ``In terms of performance capability, I think we have matched or exceeded the dedicated instruments.'' Intel will make its first appearance at a European games event by attending the three-day European Consumer Trade Show that begins at London's Olympia exhibition centre today. |