This is definitely moving their products into a different segment. The product is targeted at a pretty good segment of the PC market right now.

What I expect will happen is that this turns into a pretty aggressive battle between the two companies.

It might add a little urgency to efforts that are already under way.

The P-III is an evolutionary advance, not a revolutionary one.

The first quarter of the year is always seasonally slower, so there's no real surprise there. Adding to that, Intel [offered] some really good deals on chips in the fourth quarter, so computer makers bought more than they needed and stocked up -- and they're working through that inventory. At the same time you've got AMD taking some share away.

The important part about the server market is that the chips tend to sell for more, and so being successful there, in AMD's case, produces more resources that can be used in the desktop market.