Regarding Eric's Post:
<<Wednesday May 12, 6:25 am Eastern Time
IBM in chip contract with Nintendo - paper
NEW YORK, May 12 (Reuters) - International Business Machines Corp. and
Nintendo Inc are expected to announce on Wednesday a $1 billion agreement under
which Nintendo will use IBM's PC Power Processor chips in its video games, The
New York Times reported Wednesday.
IBM's PowerPC chip is known mostly for powering the Apple Macintosh (AAPL -
news) line of computers, the newspaper said.
Under the terms of the deal, IBM will make a custom 400-megahurtz PowerPC microprocessor for a new Nintendo
game machine, scheduled for worldwide distribution in the fall of 2000, according to the newspaper.
The deal will give IBM a foothold in the lucrative electronic video game market, the newspaper said. Some experts
predict consumers will begin to use hand-held video games to access the Internet and download video and music
entertainment.
The deal would also jump start IBM's PowerPc business, which has fallen on lean times after it was founded as a
strategic alliance with Apple Computer and Motorola Corp. (MOT - news) in 1991.
Nintendo and IBM refused to comment Tuesday, but officials of both companies are expected to announce the news on
Wednesday at the E3 video game convention in Los Angeles, the Times said.>>
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