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View Full Version : Intel Loses Xbox Contract to IBM



Shadow20002
11-04-2003, 08:38 PM
"The Xbox, though it's millions of units, isn't that much profit for Intel," says Gartner analyst Martin Reynolds. "It's a parking place for lower-cost processors -- somewhere they can put things that one could argue otherwise wouldn't have sold."

For its next Xbox release, Microsoft (Nasdaq: MSFT) has chosen to jettison the game console's Intel (Nasdaq: INTC) chip in favor of a processor built by IBM (NYSE: IBM) . Industry observers see the change -- which no one had predicted -- as a major win for IBM and a set-back for Intel, whose high-performance chips power many gaming applications.

It is also an unusual turn of events for the longstanding partnership between Intel and Microsoft. The companies' technologies have worked together so seamlessly to dominate personal computing that the term "Wintel" is used to describe the pairing.

The underlying technical reason for the switch is not yet clear, Aberdeen analyst Russ Craig told NewsFactor. But technical considerations aside, "IBM may very well have been price aggressive. Their semiconductor operation had been losing money, and this may be part of a game plan to get the utilization rates up."

Intel, on the other hand, "is coining money like a mint, so they have no need to come down on price," he said.

Source (http://www.newsfactor.com/perl/story/22622.html)

Chumley
11-04-2003, 09:04 PM
Someone got a controller for answering this question...:cheers:

Cottrau
11-04-2003, 09:25 PM
http://www.xboxaddict.com/forums/showthread.php?s=&threadid=44318

there is no need to start another thread. just reply on one thread is good.. and that one died.. so just as soon leave it alone. it's old news.

Clever
11-04-2003, 11:40 PM
nobody says IBM will definetly be next xbox's processor's provider. They are indeed using their chips but no word on which ones.

Hero
11-05-2003, 12:01 AM
Originally posted by Chumley
Someone got a controller for answering this question...:cheers:

lol i wonder who? :p

c_a_i_l_l_o_u
11-05-2003, 01:27 AM
so will the ibm chip kinds suck compared to what intel could do or will it matter at all