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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Elmer who wrote (77291)	10/27/1999 1:24:00 AM
From: Paul Engel	Read Replies (2) \| Respond to of 1573145

Elmer - Re: "All AMD needs is to fill up their fabs with low margin Athlons for MSFT. Then they'll have very limited capacity for high margin products to pay off their debts! Brilliant strategy! Who but Jerry could think up such a devious plan?" Let's see... there's dRBES, Chuckles, Tejerk, Cringe, AlibiDan, Albert's Mouthpiece Kevin, Petz.... Probably some other investing geniuses as well ! Paul

To: Elmer who wrote (77291)	10/27/1999 12:30:00 PM
From: Tenchusatsu	Read Replies (2) \| Respond to of 1573145

Well, Elmer, MS needs to sell their Gamebox at a price point close to $300, but I guess they can get away with $400. Graphics will need to be comparable to a Playstation II, so they'll probably need an Athlon (Select?) 600 MHz and an integrated nVidia GeForce 256 in the console. Toss in 64 MB of RAM, a hard drive (since PC games can't run without one), a DVD-ROM drive, perhaps an AMR modem, and maybe MS breaks even on the console. But then MS can't exactly demand royalties on each PC game sold, unlike Sony, Sega, and Nintendo. So I wonder where the money is. And besides, how is AMD going to make any profit on that Athlon Select, given that they'd have to sell those things to MS at prices between $60 and $100? AMD surely doesn't have the manufacturing capacity to drive high volumes into a low-margin product, so they'll end up losing money (or at least potential profit) on it. There's just way too many questions about this Gamebox that remain unanswered. I wonder if Microsoft will ever address them sooner or later. Tenchusatsu