Despite big gains in its share of the server market, AMD has lost market share to Intel
. For Q2, Intel's share rose 0.7 per cent; AMD's declined 0.7 per cent. It is possible that Microsoft's purchase of Pentium III processors for its Xbox games console has shifted the dynamics of the market during Q2.
Without the Xbox sale, Intel would have had an 81.6 per cent share in the quarter, while AMD would have taken 16.9 per cent of the market, the same as they took in Q1. The remaining 1.5 per cent went to VIA and Transmeta.
Nevertheless, the fact that AMD's share of the server space has, from out of nowhere, risen to ten per cent is still most staggering, and is more important than its loss of overall share.