Let The Games Begin: AMD, Intel Launch Next-Gen Processors

Intel and Advanced Micro Devices continued their dual-core tit for tat last week, with both companies launching their next-generation processors and AMD betting big that the channel will bolster its position.

AMD, Sunnyvale, Calif., received a boost at its dual-core launch party in New York with the announcement that component supplier Supermicro Computer had abandoned its Intel-only market position and would supply motherboards for AMD-based systems.

>> AMD plans to work closer than ever with the channel on the rollout of its newest products.

"I think it is very important," said AMD CEO Hector Ruiz of the Supermicro decision.

Supermicro, San Jose, Calif., said it would expand its entire product line to include optimized systems for single-core and dual-core AMD products. Vendors including Hewlett-Packard, IBM and Sun Microsystems also said they would begin shipping systems based on the new AMD chips. The processors include the Opteron 800 series for four- and eight-way dual-core servers. AMD said the Opteron 200 series for workstations would be available in May.

Earlier in the week, Intel as planned began shipping its Pentium Processor Extreme Edition 840 at 3.2GHz with the Intel 955X Express chipset—its first dual-core processor for desktops.

The dual-core processors are built to include two separate processing cores on the same silicon footprint as previous single-core chips.

John Freres, president of Meridian IT Solutions, Schaumburg, Ill., said despite the fact that Intel continues to hold a substantial market-share lead over AMD, the "game is not over yet."

"I think that AMD has got a great story," Freres said. "I think they're very much nipping hard at Intel's heels. You haven't seen a lot of innovation out of Intel of late. I think AMD is doing exactly what they need to do to penetrate and get the market share away from Intel."

Ruiz said the company will work even closer with the channel on this product rollout than in the past. "The channel has been a great partner for us," Ruiz said. "The channel will play a huge role."

AMD priced the Opteron 800 series at $1,514 in 1,000-unit quantities for Model 865 and $2,649 in 1,000-unit quantities for the Model 875. When they ship next month, the Opteron 265 processors will be priced at $851 and the Model 275 will be priced at $1,299, also based on 1,000-unit quantities.

ELIZABETH MONTALBANO contributed to this story.