ATI will make some money with RV610 and RV630 chips and this will save AMD from a total decline. ATI is also not doing great, but at the end of the day, it will make a lot of chips and some nice sales with its entry level and mainstream cards.
The part that is not that convenient for AMD is that Nvidia is once again going to win this round as its G84 and G86 families will end up a bit faster than the RV630 and RV610.
AMD will barely earn any money in Q2 and Q3 but it will recover in Q4 with its Barcelona and Agena CPUs. It looks like Barcelona will fail to be a mirracle, but it will save AMD and positioning it well against the Core 2 Duo aka Merom or the upcoming 45 nanometre Penryn.
The sad part is that AMD would have probably sank even deeper into the red if it hadn’t acquired ATI, but no one expected AMD to be so far behind with K10 and Intel to get this strong.
Published in Processors
ATI saves AMDs backside
Otherwise AMD was close to bankrupt