>>The squeeze we see now is long overdue
I agree. I own a Pentium Pro 200 w/ 64MB, 6 GB drive, 12 MB Voodoo 2, speakers, etc. It runs everything I need just fine (e.g. Quake 2 in 800x600 on my ISDN connection at 40+ fps). However, I will be upgrading soon so that I can be ready for games like Quake 3. Am I going to buy a brand new PC? Heck no. I'm going to get myself a new case, Abit motherboard, 350MHz Pentium II, and 128MB memory. I'll spend $600 (with a full 3 year warranty). And later this year when the Pentium III 500's are going for $150, I'll buy one (the Abit motherboard is Pentium III compatible). I will probably upgrade my video at some point as well (I'm thinking a next-gen nVidia NV10-based card when they come out later this year). Basically, I'm spending next to nothing to keep current. I love it. PC margins are only going to get tighter, and Dell will not have an easy time of it. Of course, they are the best positioned to deal with increasing competitive pressures, so it will be interesting.
Joe Sabatini |