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Game deals turn IBM into winner
>> From seattletimes.nwsource.com:
[QUOTE]
No matter whether Nintendo, Microsoft or Sony wins the video-game console war, there already is one huge victor: IBM, which designed and makes the microprocessors for all three units.
Not very long ago, some analysts were suggesting that IBM sell its microelectronics division, which produces processors for IBM servers and a wide range of other devices, including automotive and telecommunications gear.
Now, because of the video-game deals, IBM is expected to see about $3.7 billion in sales of chips and associated design services this year, up from $2.9 billion last year and $2.5 billion in 2004. Analysts estimate the unit is profitable.
Using the engineering consulting work it did for Microsoft, Nintendo and Sony as a model, IBM has formed a new "technology-collaboration solutions" unit that's expected to post $4 billion in revenue this year. Internal projections call for that division to hit $10 billion by 2010 and $20 billion by 2015.
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Read More: seattletimes.nwsource.com
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