Intel wins X-Box deal at 11th hour

One of the biggest unanswered questions surrounding Microsoft Corp._s announcement of its X-Box gaming console is how Intel Corp. stole Advanced Micro Devices Inc._s nearly guaranteed spot as the primary chip vendor for the system. While industry watchers are speculating that Intel simply undercut AMD's Athlon price with its Pentium III, Microsoft_s role in playing one company off against the other remains shrouded in mystery. "Obviously we_re happy that it_s one of our processors," an Intel spokesman said. He added that he was aware of journalists_ "speculation" that AMD_s Athlon would be the X-Box CPU, but said, "I don_t think that anybody should be surprised that when Microsoft went out to design a high-performance box they came to us for a processor." AMD on the other hand, is licking its wounds.