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The margins are likely extremely low and performance doesn't seem to be anything amazing, it's likely current or slightly last generation. Don't forget that consoles will still have to sell for <$500 and make some profit.

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Indirectly, it does makes AMD CPUs and GPUs more attractive to PC gamers:

http://www.eurogamer.net/articles/digitalfoundry-future-proo...

Which is another shrinking market. AMD needs a mobile and/or GPU/CPU integration strategy. I think ARM is about to eat everyone's lunch for consumer products. Not sure what may happen with Intel, as there's still some life left for servers.

> Not sure what may happen with Intel, as there's still some life left for servers.

For now. But sooner or later ARM will become powerful enough to run servers. The chips are cheaper. The operating costs will also be lower as ARM draws lower power. Before you know it data centers will switch over to ARM, first as a trickle, then as a deluge.

ARM will do to x86 what Intel did to SPARC & Alpha & PA-RISC & MIPS. Intel will have to keep retreating to higher and higher end niches.

What do you think is the moat that will keep Intel from doing to Arm what they did to the RISC chips? Intel has better process and very capable designers. They are quickly moving down-market. Why assume that Arm moves into Intel's territory before Intel moves into Arm's?

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