Update: Is Intel killing PC gaming?
A buddy at mine who is still at Intel had some thoughts to share about this article I wrote earlier. To quote:
"OEMs buy Intel integrated graphics because it's inexpensive and helps them lower prices in their value PCs, which makes owning a PC affordable for many people. To hit those lower prices, the OEMs expect Intel to sell our chipsets to them at a certain price, so product planners are challenged with keeping the die size budget (cost) down while cramming as many features and as much performance as possible into each generation. We could dedicate more silicon real estate to graphics, and that's something we're always lookingg at. If OEMs start demanding more 3D graphics performance because customers as asking for it, then Intel will have to meet the demands of those customers."
In other words, the reason high-end integrated graphics aren't finding their way into PCs is because OEMs (the Dells, Gateways, IBMs of the world) aren't asking the chipset suppliers for it... and that that's because their customers aren't demanding it. The majority of people (both business and home) buying value PCs are looking to do mail, web browsing, and office applications, not play high-end games. And customers who demand graphics performance are being catered to by OEMs with high-end systems that include high-end graphics cards.
So in many ways the situation today makes a lot of sense. You have a plethora of low-end systems with average graphic capability that are sufficient to browse the web and run Office because that's what the consumers are demanding. That might change over time, but I think it's a bit of a far stretch to blame Intel for PC gaming's woes.