AMD, Intel Stick with Speed for Gamers

AMD (NYSE: AMD) and Intel (Nasdaq: INTC) have shifted focus away from processor clock speed toward such issues such as power and heat. But the gigahertz are still climbing in one market segment: the ultra high-end, where gaming enthusiasts want the fastest silicon available.

It is not a large market, but it is a loyal one that includes customers willing to leave behind a $2,000 system and upgrade in a year's time to a $2,500 system.

Both AMD, with its Athlon 64 FX-55 and 4000+, and Intel, which is refreshing its Pentium 4 Extreme Edition processors, are looking to stay true to clock speed and serve the small segment.

Holding at High End

"The heart of the industry is moving away from clock rate speed," Mercury Research president Dean McCarron told TechNewsWorld. "This segment isn't the heart of the industry."

While desktop and notebook PCs have dropped in price even in the face of performance and other improvements, the high-end PCs used for gaming that contain the latest and greatest silicon and graphics cards have risen in price.

McCarron said these "boutique products" serve an audience of only about 20,000 users, but the machines are also about bragging rights.

"They're basically getting the highest performance that is achievable without overclocking," McCarron said. "It's the absolute maximum performance."

Just In Time For Holidays

McCarron said that as both AMD and Intel prepare to unveil new, ultra high-end processor refreshes later this month that will push the 3.5 GHz mark, the companies are cutting it close when it comes to having machines with the chips available this holiday season.

However, because of the loyal nature of the market and the fact that system replacement is far more likely with extreme gamers, the companies should be able to pull it off, according to McCarron.

He added that in the ultra-high end desktop market, a new version means that all previous versions are no longer of value.

Speed Endures

Last week, Intel announced it was backing off earlier promises to deliver a 4 GHz Pentium 4 processor next year.

Analysts, including Gartner (NYSE: IT) research director Martin Reynolds, said the move was a significant departure from the chip leader's previous stance and a late refocus on other issues such as power and heat, which have become more important with mobile and more powerful systems.

McCarron, however, said when it comes to the ultra high end, the focus will continue to be on higher clock rate speeds, which can be expected from both AMD and Intel.

The analyst added that although products for this market can help the chipmakers and their partners promote other products, the segment has not grown and is unlikely to expand in the foreseeable future.