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

To: Scot who wrote (94546)	2/22/2000 10:24:00 AM
From: Cirruslvr	Respond to of 1573718

Scot - RE: "My question/concern about the X-Box is simply...how is AMD going to make any money? The console could be priced as low as $149, including a hard drive." It has been speculated Sony will lose money on each PS2 they sell. I think software brings in the real money.

To: Scot who wrote (94546)	2/22/2000 10:36:00 AM
From: xun	Respond to of 1573718

Scot, RE<My question/concern about the X-Box is simply...how is AMD going to make any money? The console could be priced as low as $149, including a hard drive. > If you buy a PCS today, What you pay is significantly less than what OEMs sell to the service providers, which subsidize your purchase. I don't believe any OEMs can make any money off $149. Microsoft or ISVs must subsidize it. The OEM price of X-Box could be in the $300 range, IMHO. Regards, panic_mob

To: Scot who wrote (94546)	2/22/2000 10:39:00 AM
From: Joe NYC	Read Replies (1) \| Respond to of 1573718

My question/concern about the X-Box is simply...how is AMD going to make any money? The console could be priced as low as $149, including a hard drive. It seems like we are barely covering costs here, if that. I thought the reason why AMD was in the cpu business is the potential for significant margins. Am I off-base here? I don't know if MSFT is planning on any kind of royalty scheme from game publishers to subsidise the price. $149 seems low. Maybe $149 for hardware cost, plus $20 - $50 to MSFT for the OS plus $50 markup for final price of $250. Still, $149 for all hardware would mean no more than $50 to AMD. $50 would probably be still within a ballpark of profitability, but anything below that is going to be tough. But think of the upside: Athlon would become THE gaming machine. People would build (or buy) their own souped up Mega-X Boxes with the high end CPUs, and they will brag about how much higher their frame rate is than the other guy's. All the games would be optimized for Athlon and 3DNow and will run fine on X-boxes big brother - high end Windows 2000 machine. Joe

To: Scot who wrote (94546)	2/22/2000 11:07:00 AM
From: tejek	Read Replies (1) \| Respond to of 1573718

My question/concern about the X-Box is simply...how is AMD going to make any money? The console could be priced as low as $149, including a hard drive. It seems like we are barely covering costs here, if that. I thought the reason why AMD was in the cpu business is the potential for significant margins. Am I off-base here? -Scot, by the time the X-box goes into production....assuming that it does....the lower end Athlons (up to 650)which are the ones I would expect MSFT to use probably will go for $35-50 and the X-box will be useful only in that it will keep demand high which, in turn, will lower production costs. Keep in mind someone predicted that the 750 will be at $35 in a year.....and they may not be that far off given the Mhz/Ghz competition betwen Intel and AMD. Plus I think your console price is a little low....$300 more likely. ted