Effective this week, the Athlon 64 X2 6000 chip is now priced at just $178. That's a drop of around 30 per cent from AMD's previous list price and translates into just £88 in UK terms. At launch earlier this year, the 6000 was sold for £255 excluding VAT.
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AMD vs. Intel
Already, a number of online retailers in the UK are selling the Athlon 64 X2 6000 for just over £100 including VAT.
The remainder of the Athlon 64 X2 family received similar price cuts. The 5200 now clocks in at $136 (down from $178), the 4400 is slashed from $121 to $94 and the 4200 is down by $31 to just $73.
The cuts are the latest salvo in a vicious price war between AMD and arch rival Intel . Unable to compete with Intel's powerful Core 2 Duo processor in terms of raw performance, AMD has been forced to reposition its Athlon 64 X2 chips accordingly.
The price war is thought to be a major contributor to the £611 million loss AMD announced for the first quarter of 2007.
Meanwhile...Along with swinging price cuts, AMD has announced that its single-core Athlon and Sempron processors will be phased out in developed markets. Some low cost single-core Athlon chips will remain on sale in high growth markets including Brazil, China and Russia.
With prices for its existing processor range now at rock-bottom, AMD desperately needs to roll out its long awaited new quad-core chip. Known as Barcelona , AMD has announced the crucial new CPU will begin shipping in server and workstation trim next month.
An official launch date for Agena, the desktop variant of AMD's new quad-core architecture, has not been revealed. However, it's unlikely to appear before the very end of 2007 and could be delayed until well into 2008.