Indeed, AMD didnt do very well after Radeon HD 4800 series launch a year ago with Prepare to Dominate!! marketing. Radeon HD 4800 series success were very shortlived and failed miserly to break Nvidia 3 years domination that AMD wanted to achieved 50% discrete marketshare a year after Radeon HD 4800 series launch.
AMD are now face very tough 2009 and 2010, they now realised that they will never achieved the goals as they dont have same userbase as it were back in 2004 the last time ATI was held the domination. Intel are very busy with all the resources testing new Larrabee drivers for new Larrabee GPU with huge library of PC games from 12 years ago until today to make it full compatible to run every games flawless as good as Nvidia driver in time for the launch in end of 2009 or sometime in 2010.
If Larrabee is as fast as AMD's R800 and R900 and their driver are much better than Catalyst and Intel will eat AMD marketshare then AMD will be in serious trouble.
AMD had bad Q1 2009 with losing both CPU and GPU marketshares to Intel and Nvidia, it sad to see AMD still struggled with no cash 6 months after spinned off the fabs last year with $416m loss in Q1 2009, they lost $7.467bn to date since acquired ATI for $5.8bn so now they are hope to get more cash from US government stimulus money.
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