The price wars continue with server and workstation products as well. Intel's latest roadmap reveals two new Xeon processors and aggressive quad-core price cuts in Q3'07. The Intel Xeon X5300-series receives a speed bump to 3.0 GHz in the form of the new quad-core Xeon DP X5365. It will operate on a 1333 MHz front-side-bus with 8MB of L2 cache like the other products in the quad-core Xeon DP lineup. The new quad-core Xeon DP X5365 will launch at the price of $1,172 per processor in 1,000 unit quantities.

Intel expects to cut prices of existing quad-core Xeon DP processors in July 2007 as well. The previous flagship quad-core Xeon DP X5355 drops down to $744 from its current $1172 price in July. The other two 1333 MHz front-side-bus endowed Xeon DP E5355 and E5335 will cost $455 and $316 per processor, in 1,000 unit quantities after the July 2007 price cuts. Intel's two quad-core Xeon DP processors with 1066 MHz front-side buses, models E5320 and E5310, will drop to $256 and $209, respectively.

To me it seems Intel wants to completly overwhelm AMD at all cost to make sure they get to a point where no recovery is possible. Or AMD is about to release a monster that scares the living crap out of Intel :-)