AMD to avoid fabbing high end CPUs for a while?

By Justin Mann on August 14, 2008, 11:59 AM
AMD is doing well in the GPU market, with the 4800 series proving to be more than a match for Nvidia’s cards. The performance has been impressive and initial reviews show it in a very positive light. The CPU side of AMD isn't doing as well, and hasn't been for a long time. Unwilling or unable to put up the same fight they are against Nvidia, though, AMD is looking to be a little more conservative for a while. As a result they don't have any plans for a high performance processor to compete with Intel's top of the line for a while.

This includes the latest Nehalem processors, which AMD has conceded they currently don't have any technology capable of besting them. According to the rumor, AMD will just sit back and wait until sometime in 2009 to get another performance-class processor out the door.

It may seem like such, but this is not a bad thing at all. AMD did not make their entrance into the market with a performance king, and instead took the underdog route. They fabbed chips that were similar to Intel's in every way except performance and price – and it was their lower prices that built up their customer base in the first place. Things changed rapidly when they discovered they could also out-perform Intel, and since then it's been a lot of back and forth. Perhaps AMD should focus on the price portion again, to avoid losing even more ground to Intel.




User Comments: 6

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Nevern said:
Great! I started building my own PC's after using Macs for years. I like to support a smaller company anyway, and refuse to pay premiums for only modest differences in performance. Since I am not an "extreme" gamer and most other apps besides the latest games don't need that many resources, why would I want to part with the extra money? The production and development cycle for the computer components is getting faster all the time, so what if I sit out one or two phases and catch the products as the price drops? Seems smart to me!Go AMD!!
KingDingDong said:
I love AMD, I am a multimedier and by far performance vs. cost AMD wins. I refuse to pay for over priced Intel. I think this may be a smart move to go back to the old roots. I agree with Nevern above. Go AMD!!!
windmill007 said:
AMD use to be my choice. Now you just can't beat the price and performance of Intels chips. I went with a 3.16 Dual Core and have it overclocked to 4Ghz easily on Air. I paid $180 which is a very good price and AMD doesn't have anything even close. I also think there GPU's are way to hot. I am glad they are competing because it helped me get a Nvidia 260GTX for $229. A month or two ago it was close to $400... So thanks AMD. I hope they stick around to make Intel have lower prices till they actually come out with something good. I am keeping my fingers crossed for them but as of today they just aren't the best value.
seanp789 said:
I've been a fan of AMD since the T-bird but AMD is seriously hurting. Most of their senior staff have abandoned the company. The only competitive product they have is in their acquisition from ATI. They were already losing the performance and the performance per watt race to Intel and they are about to get crushed by Nehelem. AMD can't manufacture chips cheaper than Intel and AMD has lost much of the brand power it built up a few years ago. AMD will have to discover a major breakthrough in processor design or manufacturing to get back into the game and right now thats just not even on their roadmap.Intel will continue to set prices based on marketing not on cost, why?, because they don't have enough competition.The real question is... If AMD continues it's downward spiral, what will happen to ATI?
eafshar said:
i guess as long as its profitable or they see any hope for profit they'd continue making CPUs.. i wish they do cause without AMD, we'd be paying 10 times as much for half the performance
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