Well yes. This was a deal - Intel partly outsourced production to AMD. But it wasn't the first licensing deal they had. And in 70s AMD was just cloning Intel's stuff.I did read about the beginnings and history of these two companies a long time ago. Did AMD get into x86, because IBM wanted a second source of x86 CPUs when they built their first PC maybe?
This is just a reminder that the status quo we have today, with 2 companies with their own products, is a fairly new one.
So the short answer for
"Can you imagine how much better and cheaper these products would be if both companies had been equal competitors all this time?"
is: there would most likely be no AMD today.
Some?!AMD has definitely made some bad business decisions and when you don't have as much resources in terms of money, fabs etc,
Losing fabs and money was one of their decisions. They wanted to be like Apple - just designing stuff, innovating.
But earlier they had the manufacturing, they had the tech, they had a client base. They had everything.
15 years ago I just loved AMD. Everyone did. We were not fanboys in modern meaning (as in: blind Intel haters), but we believed in this company.
When they bought ATI, people were like "WOW - they'll make a closed PC ecosystem! Or a console!". This was an amazing idea! But nothing like that happened.
10 years later people still highlight the advantage AMD has - making both high-end CPUs and GPUs - but these are just parts. You make a CPU and a GPU and you can sell them for $100 each. But if you add a cheap mobo and a plastic case, you can charge $400 for the whole set.
People also like to say that AMD makes chips for most consoles. But if they decided to make their own console in 2007, they would most likely take the second place behind Sony PS (while still making GPUs for them as well ).
AMDs total revenue (so GPU+CPU) for 2016 was 4.3 bln USD. Cute.
PlayStation revenue was 14.7 bln USD.
XBOX revenue is not official, but should be around 5-6 bln USD.
So effectively, in the end, the best move they did (buying ATI) became their worse one.
AMD was not the underdog to Intel. Intel basically owned them and supported their development. But they let them lose and suddenly it was too late. AMD learned a lot, quickly became the second-largest CPU manufacturer and now regulators won't agree on a takeover (just the GPU part is another story ).I think it's a combination of this and Intel's dirty tricks against them which has lead to the current dominance of Intel over them. In fact, I seem to remember from that history that AMD were the underdog to Intel most of the time, right back to the early 70s.
Think about it next time you'll have the idea that government is on Intel's side and is slowing AMD down.