Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 223.53

+1.1%

3:59 PM EST

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To: combjelly who wrote (218358)	11/30/2006 11:11:21 PM
From: Joe NYC	Read Replies (1) of 275872

cj, Microsoft is getting ready to cut prices. Currently, Microsoft makes abouts $75 per console. Which is unusual in the console market. Sony is losing about $300 per console for the high end one and about $350 a unit for the cheapy. All these are estimates based on tear downs. If Microsoft cuts prices by about $100, then even Wii will be feeling some pressure. Now Wii can survive. PS3 is a bigger question mark. Wow, that's huge! I wasn't aware of that, since I am not following the console market. I don't see Sony ever recovering the money lost from the royalty / licensing revenues. Sony will have to go with probably 1 to 2 years of huge losses before the costs come down. BTW, if XBox gains leadership position in console market, it is good for AMD, since XBox uses ATI graphics. Joe

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