i wish the press release was more clear. this could all be wasted discussion
IBM email:
From:
John E. Kelly III
Senior Vice President and Group Executive
IBM Technology Group
Subject: Today's Announcement -- Our Win with Xbox
Dear TG Colleague:
A few minutes ago we announced that we have won a deal to design, develop and make the processor for the next generation of Microsoft's Xbox game system.
Microsoft selected us for one very simple reason -- we are the leaders in the advanced technologies they need for Xbox.
This is a major win for us on several fronts:
It illustrates and capitalizes on our deep technology and service capabilities. The new Xbox technologies will be based on the latest in IBM's family of state-of-the-art processors;
It is the single largest win for Engineering & Technology Services and a substantial foundry win for our 300 mm facility;
We've handed Intel another defeat. Earlier this year, we kept them out of the Apple G5 and now we've thrown them out of Xbox. (Not bad, considering one Intel executive recently called us "trivial");
We are now the undisputed leader in providing advanced chip technology for the gaming industry. We make the CPUs for Nintendo's GameCube systems. We are shipping in volume the GeForce FX advanced graphics processor for NVIDIA, the premier supplier of graphics chips for the gaming industry. We are working with Sony Computer Entertainment to develop the processor for its PlayStation3 system. And now we've won the next-generation Xbox.
Many of our major worldwide operations will be involved in this project including -- Rochester for design, Austin and RTP for development, East Fishkill for manufacturing and packaging, and Burlington for mask and test work. It exemplifies the type of deals we're starting to win and must continue to win -- deals that use our full capabilities.
More and more, companies like Apple, Intersil, Sony Computer Entertainment, Qualcomm and others are turning to us for advanced chip technologies and the expertise in applying them. And the list continues growing. Finding
more opportunities such as these, closing the deals and delivering on our commitments to our customers all are essential to returning our business to profitability.
So congratulations to everyone on winning this outstanding deal.