That scenario makes no sense, and yeah you would call that expensive. We would be able to compare it to the historical pricing of every previous dual-core CPU ever, and it would take all of 10 seconds for anyone who isn't a moron to figure out that $500 for a dual-core CPU is blatant gouging. Think about all those budget prebuilt systems you see in Walmart for $299, with a dual core Pentium/Celeron and 2GB of RAM. Do you honestly believe that Intel would start charging $500 for a Pentium/Celeron and thus hike the price of those budget systems to $800? The budget and mid-range prebuilt computing sector is where both AMD and Intel make a good deal of their money, why on earth would they then kill it off completely by gouging like that? People who go for $299 systems can't afford anything else...if the cheapest new desktop/laptop was $800, they'd just buy a used one from a garage sale or go without.
For the 10,000th time, there will not be any insane price hikes like $500 for a dual core or $1000 for a quad. Am I trying to defend an Intel monopoly? Hell no. I'm simply taken aback at how many people really don't seem to understand how economics work.
That aside, if anyone actually read the article in the OP, AMD is still in business and they're still making CPUs and GPUs. They're not going anywhere.
Edited by Malcolm - 11/30/11 at 6:18am