> In the past this strategy backfired for Intel (INTC) and the same may be the fate of Nvidia.
It sure as shit didn't backfire for Intel - they settled with AMD for $1,000,000,000.
For this price they completely hobbled AMD's ability to sell the Athlon 64, which hobbled profits (both directly and in terms of long-term branch image), which ultimately hobbled R&D.
AMD never fully recovered - and sold their foundries in order to survive.
Intel, on the other hand, got full control over the pricing of pretty much the entire x86 market for over a decade - it was well worth what they settled for.
It sure as shit didn't backfire for Intel - they settled with AMD for $1,000,000,000.
For this price they completely hobbled AMD's ability to sell the Athlon 64, which hobbled profits (both directly and in terms of long-term branch image), which ultimately hobbled R&D.
AMD never fully recovered - and sold their foundries in order to survive. Intel, on the other hand, got full control over the pricing of pretty much the entire x86 market for over a decade - it was well worth what they settled for.