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Microsoft's move into CPU, chipset market

i don't doubt that ms has the capabilities to design its own cpu and graphics processor, but in today's market the trend is towards specialization and outsourcing where a company focuses on its core operation and outsources all other parts of its business to other companies that have an expertise in that area. A move into the cpu and gfx chip business will not neccessarily lead to higher profitability.
Nvidia might not have that much to worry about since even Intel has been in the gfx processor business for as long as Nvidia and maybe longer without posing a serious threat to them.
 


<< Microsoft's move into CPU, chipset market

I could see it coming... Apparently MS doesn't like NVidia too much.

The additional competition may be good. Only thing, I hope their CPUs/Chipsets don't crash that easily :Q >>



FWIW, MS doesn't have a history of playing well with others. If they make a serious move into this market, it will be with the intention of dominating it. And they will fully leverage their monopoly in the desktop OS & office suite markets to help that happen.

"MS Sales Rep: You want MS Windows 2010 for the Intel P8? That will be $800. But I can give you a $700 discount if you choose a system based on the new Microsoft CPU. And oh, by the way ... MS doesn't plan to support Intel CPUs for MS Windows 2012."

The last threat may not be true, but they'll hint at it anyway.


 
What I gather from the article is that MS is just entering the market to produce the chips / chipsets only for the X-box. I don't think they have any plans to enter the mainstream CPU/Chipset market for the time-being, but it's difficult to gauge the impact of MS's decision in the longrun.

IIRC, they are also spending heavily on their Tablet-PC division on R&D etc
 
Its only for the console, I think.

I don't think there are many companies that exist that like nvidia. They are extremely expensive, just look at the 8500 in comparision.

They are also more arrogant then any other company I've seen. They make MS look nice. Its no wonder so many manufacturers jumped onto making ATI cards so fast, they removed the power nvidia had over them.

Once they perfect this area, don't expect them to stay there. They comparision of MS to the borg is very true.
 
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