IBM claims Xbox2 deal a defeat for Intel

Sources have shown us how IBM announced the deal inside the firm, in this memorandum below.

According to IBM, not only has it "thrown them [Intel] out of Xbox", but it also kept them [Intel] out of the Apple G5.

The memo appears to show that if there's one company that bears a grudge, that's Big Blue. As our own Good Doctor Spinola has it: "Life is too short not to wreak a bitter and bloody revenge".

You may also want to read Eva Glass' story from March 2002 about Microsoft and the Xbox2, which discusses cutting out Nvidia, and any X86 manufacturer.

'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.'

See Also
Microsoft to design chips for Xbox2
Xbox2 vies with PS3 technology
Microsoft's Gates goes back to IBM for Xbox chip