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Why this war?

That's exactly the point, excellent value for money, but it isn't the best out there.

 
Nah, they can't. 

If they start to increase the price it will go out of hand, and if they cut down on the quality.. 

Nah.. Some rich person will start a new company and start competition. 

I would. 
Noone else can afford to start a company to compete with Intel. Even a single modern fabrication plant costs billions of dollars, to compete with Intel you will need more than one. Then there is the x86 license, you wont have one, nor will you have the IP patents or licenses for them to even begin building your first cpu.

If an existing company the size of AMD cant compete what hope does an under funded startup with no IP have? None.

If AMD die, as they surely will, we're fucked. Intel will have one competitor and thats not even in the desktop/server space - ARM - and they dont make their cpus they just sell licenses to make them to others.

 
Believe it or not, building rockets the way SpaceX does it, is in fact quite cheap. To get even 3 or 4 semi conductor fabrication plants up and running with 22nm or smaller node equipment would cost 10-20 billion USD. Which is vastly more investment than SpaceX has had (1 billion USD in total from its founding till 2012).

Not to mention the fact that the x86 license, which was historically given to AMD by Intel back when they were doing business with IBM for their newly created pcs (IBM demanded that there be at least 2 sources for the cpus), cannot be transferred from AMD and without it you cannot legally build a x86 cpu. Without that you're dead in the water.

Seriously the only competition that Intel have is AMD and they are struggling to survive. At least in periods of poor growth Intel can sell spare capacity at its world class fab plants (only company to have produced anything at the 14nm node). All AMD can do is cut costs (reduce R&D expenditure as mentioned before and/or lay off workers).

 
In short it goes back to a pretty shitty Business decision on both their parts:

Intel Owns the base architecture for 32Bit operating systems.

AMD owns the one for 64Bit Architecture.

So basically 32 bit would work on its own BUT would limit everyone to 3.5GB of ram max among other things.

64Bit needs 32Bit to run so essentially AMD needs intel to survive but intel needs AMD to remain modern.

Also they have two very different business strategies.  

AMD: High performance with maximum compatibility that is affordable to all.

Intel: Cutting edge technology with as little backward compatibility as possible to increase sales. 

(AMD User so slightly Biased)

 
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