Quote Originally Posted by squirrl View Post
I can't understand why they are in so much financial debt.
Big contract with Nintendo (Wii uses ATI)
Big contract with Microsoft (XBox 360 uses ATI)
Every major motherboard with an AMD cpu ships with an ATI chipset.
Because of a few reasons:

1: AMD put itself into a lot of debt as the result of the ATI purchase.
2: AMD typically targets the low-end, and as a result has very low product-margins.
3: AMD since K8 has typically shipped its products late, which has lead to increased development costs and reduced sales.
4: AMD has been absent from the fast growing mobile-market.
5: AMD in non-competitive with Intel in sales in the Server market.

Shipping lots of low-margin parts is a great way to try and gain market share, but is financial folly. Lets face it: Its CPU side of the house is a mess right now.