AMD cuts chip prices

Advanced Micro Devices Inc. is matching Intel Corp.'s price cuts with its own round of reductions. The 1.2GHz Athlon will sell now for $254 and the 800MHz Duron for $79.

In related news, AMD has followed Intel's suit in warning that fourth-quarter earnings would not match forecasts. Analysts blame a softening economy, PC saturation and excess inventory. AMD points, in part, to the dearth of chipsets with integrated graphics for the Duron. Regardless, this will be the first profitable year for the company since 1995.

For more AMD chip prices, read theregister.co.uk. For more on the company's financial picture, see news.com.