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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Paul Engel who wrote (138779)	7/7/2001 1:20:28 AM
From: t2	Read Replies (1) \| Respond to of 186894

A question on the potential for the X-BOX and how much it can help Intel. This year, PC unit shipment estimate is about 45 million. Sony has been doing 7 to 10million game PS2 consoles a year. Considering that Microsoft is just introducing a new product into this market, I would think that it has great potential for several million units--annual rate. Of course the bulk of those sales happens in the 4 quarter of this year. That would be a large number of games being sold in comparison to PC unit shipments. A whole new market for Intel. Considering that an Intel chip will go into each x-box, I just wonder what kind of impact this would have on Revenues in the 3rd and 4th quarter. My guess is that 3rd should be impacted by the X-box, just because MSFT will want to have production of the consoles well in advance of the launch date. A possibility that Intel won't have to cut 3rd quarter estimates on Revenue and earnings in a quarter before the Windows XP launch...which would normally be slow. Could the X-Box could end up affecting the 3rd quarter outlook for Intel?...ie less possibility of a revision downward for the 3rd quarter. I would guess that these will be low priced chips and that is why I am uncertain on the effect on Intel's outlook. BTW--of course Nintendo also sells in the game market; the demand is very strong. 500k advance orders just for the handheld "gameboys"...video games appears to be a big market with plenty of potential for Intel if they can use their brand name to help sell their customers' consoles starting with the X-box. There is always potential for Sony to become an Intel customer down the road as well..now they buy their chips from LSI. The competition between Sony and MSFT is going to come down to graphics and that is what should open up a bigger market for Intel in industry..down the road.