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Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?

To: Tenchusatsu who wrote (58966)	10/17/2001 9:02:07 PM
From: Bill Jackson	Respond to of 275872

Tenchu, We may never know the final details of the X-box contract and wehether or not it made Intel any money. It is quite possible that Intel; did indeed quote a lower price than AMD, a price that even Intel made no money on, even with going to .13 etc. Intel may have done this as a pure and simple spoiler. Intel is willing to take the loss in exchange for the hurts it would give AMD in terms of game compilers etc, just a business decision. AMD quoted to make money. Intel was able to beat that on the basis of not making money. In fact the ability to snatch it at the last minute makes me feel it was a deal MSFT could not resist....very very cheap. Remember MSFT loses on every one and hopes to make a $$ on downstream SW sales and royalties, so whan they see a deep price cut they grabbed it. AMD was unable to match/beat as they did not want the losses or could not bear them as they are smaller than Intel.. Bill

To: Tenchusatsu who wrote (58966)	10/18/2001 12:48:52 AM
From: Jim McMannis	Respond to of 275872

RE:"AMD needed that design win more than Intel. The AMD supporters dreamed up all sorts of benefits from the potential design win, such as increased market clout, more software optimization and compiler support for Athlon processors, fabs becoming obsolete less quickly, etc. Then when Intel got the design win, AMD exhibited a clear case of sour grapes." In retrospect and given the collapse in CPU prices...AMD might as well have bid lower...still Intel may have still underbid them...who knows.. Jim