AMD needs a price drop fast and a 985 processor.
Ouch.
From anandtechs review, AMD needs to make imaginary 985 processor to match the i750(as it loses across the board) and price it down to 199 to have a product with parity to intels line up.
Even then, this processors going to have much much worse power consumption.
http://www.anandtech.com/cpuchipsets...px?i=3634&p=17
AMD is screwed either way unless they get something fast out the door.
If AMD releases a 985 at 199, they have to cut the rest of their processor down, and their goes their margins.
If they keep as is with no chip and just a price cut, they are forfeiting the 150-300 chip market because the general public does not buy AMD when it has worse performance(which Intel can get away with).
I expect the latter to happen because AMD cannot make release a 3.8 ghz processor with current yields in any significant quantities.
The graphic division won't be able to save AMD, as they need to make billions.
The only forseeable way out of this predicament is AMD turns phenom II tech into mobile tech ASAP. Bulldozers can't be finished anytime soon.
I think AMD profitability in 2009, is just as foolish a prediction as Shintai infamous, "2008 will be another year of nvidia dominance". Especially if profitability is actually supposed to come from products sales rather than asset sales.
Not a very happy situation since AMD needs money badly or signs of future income if they expect any more additional bailout money from their buyers or creditors.