Really? So all those people on amdzone.com claiming that AMD produced superior CPUs since around 368 were wrong?
Though still I'd like to know what the price was AMD asking back then.
Can you show any older price comparisons for CPUs? While I can believe that lower end of CPUs cost much more than today's <$30 I have hard time believing average CPU prices were > $500.
Or maybe it's Intel itself? After it wants people to buy its products, if they keep prices too high people won't see a reason to buy them. Sure, average prices will probably raise a bit but as long as Intel wants people to upgrade CPUs they can't go much higher than they are or they would have warehouses full of CPUs that nobody wants.
Reread the article I posted:
http://www.nytimes.com/1993/12/21/b...erence/Times Topics/Subjects/C/Computer Chips
adjusted for inflation, the cost of the price lowered 486 would be ~$450 for 1993 in a time when Pentiums were shipping in large volume. I'd say 486 constitutes average to less than average performance those days. The situation was even worse a few years earlier.
Intel explictly said it lowered the price of its 486's in that article due to AMD's competition. It didn't need ot do anything to its Pentiums. Now that AMD's Phenom II is well within striking distance of high end Core2Quads and i7's, it feels the need to attract budget conscious customers with a value oriented part. Even if you don't believe the i7 920 is a direct consequence, you'll have to atleast admit that Core2's are as cheap as they are because AMD has a directly competitive part.
You'll also note that it took Intel about 5 years to refresh its 386 design to the 486. Compare that to the last 3 years when we've seen back to back increases of about 40% in performance from the same company. These designs (Core2 and i7) were in the design queue during the time AMD had dominant performance it's definitely a sign that Intel felt the pressure in a big way.