Quote Originally Posted by Shintai View Post
Actually they didnt need ATI at all. They could have done like Intel. Tho Intel now targets more than "fusion". The target now is also nVidia and high margin performance cards.

So they basicly payed 5.5billion for something they could have used a few 100mil (worst case) or less to develop inhouse.
I´m sure people thought they bought a glooming business that could make a profit. But it was a shame that ATIs main revenue and profit was Intel chipsets.
There is a finite amount of resources in every company.It's hard to get plenty of good , experienced engineers and SW developers , make a product and attack the king of the hill ( Nvidia in GPUs ).

AMD needs to compete with Intel in :
-high perf MPUs
-low power low cost MPUs ( Silverthorne )
-integrated graphics
-chipsets
-high end graphics
-minicores ( Larrabee , Polaris )

Basically , having 6 more people means you can do more things at once.
In my view , AMD will be forced to give up their expansion plan , cut R&D dramatically and entrench itself in a market where Intel is less willing to compete ( consumer electronics , low power , low cost products , low cost PCs ).