Intel dropped the prices of their Pentium 4s today, some as big as a 43% drop. The 2.4GHz version of the chip dropped from $562 to $400 while the 2.26GHz and 2.2GHz versions of the chip fell from $423 to $241. Other Pentium 4s were cut from 12 percent to 32 percent.

Mobile Pentium 4 chips also dropped considerably, which should help stimulate that area a bit more.

As far as the AMD camp is concerned, a source tells me that AMD will counter this price drop with cuts of its own tommorrow. AMD is also preparing to release its next-generation core for the Athlons, which should be out in early June. "Thoroughbred" will be the first AMD chip to be produced on the 0.13 micron process, they are currently built on a 0.18 micron process. This will most likely be the last core change before the new generation of K8 Opterons and Athlons will come out at the end of th eyear.