wow, thats amazing, i did not even know intel was in a price war, when did they lower there prices? I know amd have droped them several times but i am shocked to hear that intel has done this also
Intel started the price war by undercutting all of their processors with a $183 E6300. There is not one PD faster than E6300, much less X6800.
Baron,
Intel simply responded as any company under competitive pressure would respond.
The microelectronics industry, and MPUs specifically, has grown to be a significant portion of this country's (and the world's) GNP, as such Intel grew with it as demand increased and AMD in the past failed to generate the necessary revenue to keep up. This, of course, leads to the behemoth we have today in Intel and the cost of manufacturing has grown such that it hinges on economy of scale. To support the current business for Intel, the key for them is volume.... to return on investment for their stockholders is also hinged upon volume.
As AMD provided evidence and built credibility of a serious supplier with a better product, the natural tendency is for the market to begin buying their product.... this is what AMD did with K8. As you point out, Intel lost market share and sales to AMD, it is unreasonable, as a competitor, for them to not respond as their scale demands a certain portion of the market.
So releasing a better product than your competitor and pricing it attractively to regain lost customers is not only natural, but it is absolutely critical if Intel wishes to maintain a profitable business.
In a round about way, AMD started this price war by rising to challenge Intel.
From an AMD perspective, and I know he is not your favorite, Ed of Overclockers had it right.... AMD needs to get big or fade away as the cost of bringing new product to market is getting prohibitive. Even AMD's on financial CEO stated, there is no business model that allows them to be a niche' player. AMD is right about this, they must get big, with large volumes so they can leverage postive cash flow to develop new products, otherwise they will simply fade away.
What you are witnessing between Intel and AMD on a more global scale is AMD's need to get big and Intel's need to stay big.... hopefully in making this attempt no one actually dies (figuratively speaking).
Jack
Yeah , and the thingamajig connects to the wigamabob and enables advanced thermolajigging in cases of high kilamajabbies.