Arachnotronic
Lifer
- Mar 10, 2006
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For me personally, I think it has to be a bit lower than that. Hard to say exactly how much lower, since it depends on the options available at the time. But if priced competitively enough, sure it'll benefit the customers. At least it won't be worth than what we have now with not much competition in the HEDT segment at all.
I don't think that AMD will price its 8 core Zen particularly cheaply and there is a very simple reason why.
AMD is basically on its last legs financially and the whole purpose of going after HEDT is because this is one of the few markets where customers are routinely willing to pay top dollar for performance. Unlike the general PC market it is actually a growth market.
If AMD comes in and gets cute with pricing, say offering an 8 core Zen at $350, and assuming it's actually as good as some of the AMD fans here think, then Intel would rightly and smartly respond by cutting the prices of its HEDT 8C/16T chips to around that price while bringing in some higher core count Xeons to fill in at the higher price points.
This would immediately eliminate the value proposition of the 8 core Zen for most customers (except of course the AMD loyal) and AMD winds up pretty much back where it started -- as the low cost option with relatively little market share.
Unlike Intel which can withstand seeing a dip in its gross profit margins on niche high end CPUs for a little bit as it deals with AMD, AMD will find itself unable to bring in enough revenue/profits in order to sustain itself and the company eventually goes under (given AMD's financials things need to get a lot better over the next year or two for the company to even have a chance of even being around in its current form).
tl;dr -- AMD can't really afford to play the price/value card because it simply doesn't have the financial wherewithal to do so.