AMD Price Drop: Battle Heating Up in Processing Chip Arena

Dennis Faas's picture

Amidst rumors that Microsoft may cut the price of its Xbox 360 in anticipation of the release of the Sony Playstation 3, similar tactics are being employed in the world of PC processing chips. As a tactic to distract consumers from the long-awaited release of Intel's Core 2 chip, AMD is drastically slashing prices of its own products, by as much as 46%. (Source:

Interest in Intel's next-gen chips has been growing in anticipation of the Core 2 release in the next few months, leading AMD to "pipe up" in order that PC users remember their immensely popular Athlon line of chips.

Reductions in AMD chip prices will be put into effect by July 24. Many of those most sensational deals come with AMD's Sempron and single-core Athlon processors, which have now dipped below the $100 mark. The pressure from Intel, some insiders believe, is forcing AMD to give up its quiet and firm hold on the upper-end of the chip market. An updated list of AMD prices can be found here. (Source:

Intel Strikes Back

As might be expected, AMD will not be the only chip-maker reducing prices. Intel is expected to knock around 60% off its current generation chips. Interestingly enough, Intel's counter-move to AMD will actually be put into place a day earlier, with its own price cuts taking effect on July 23.

With Intel matching AMD's price cuts, it could mean a difficult period for the latter. With the Core 2 expected to gather much excitement this fall, AMD is not scheduled to release its own wave of next-gen chips until 2008.

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