Intel pulled a move this week, friendly to customers and hostile to AMD, slashing many CPU prices shortly after AMD released some new generation units. They cut prices on several CPUs including quad-core units and Xeons. The price cut was significant, enough for AMD to take notice. As a result, AMD has now responded with price cuts of their own.

For their new 45nm Phenom II units, AMD has cut prices significantly, with the Phenom II X4 940 Black Edition for instance receiving a 15% cut. The cheaper Phenom II X4 920 received about a 17% cut, and other CPUs were affected as well.

These cuts are an obvious response to Intel, given that AMD is currently having financial difficulties, evident by their planned job cuts and financial restructuring. They are dead set on getting people to buy their CPUs again, it seems, even if it means having to undercut.