Cyrix scores Compaq win

Electronic News, Feb 24, 1997 by Jim DeTar

Richardson, Texas--Cyrix finally has its long-sought first major OEM PC systems win with the announcement late last week that Compaq Computer will use the Cyrix MediaGX processor in its Presario line of PCs. Cyrix is positioning the MediaGX, which has integrated multimedia functionality on-chip, as its entry-level processor.

The company plans to offer a full line of MediaGX chips with speeds ranging up to 200MHz by the end of the year, and said it will shortly announce additional system wins for the new chip.

The news of the Compaq socket win had been expected (EN, Antenna, Feb. 3).

Cyrix's microprocessor portfolio also includes the existing 6x86 architecture line of Pentium/Pentium Pro competitors and will shortly be augmented with the forthcoming high-end version of the 6x86 architecture--which is currently code-named M2 and will feature 4x the cache of the company's existing 6x86 processors and what Cyrix is terming "MMX" capabilities, despite the fact that Intel has said it intends to defend the trademark-pending MMX name in describing its proprietary multimedia instruction set.

The new Compaq Presario 2100 will come with a 133MHz MediaGX processor, 24 megabytes of EDO RAM, 2-gigabyte hard drive, 8x CD-ROM, 33.6K data/fax modem, Compaq speakers and Windows 95 and other software bundled in for $999. It remains to be seen, however, whether this initial success for Cyrix will translate into acceptance by Compaq at a future date of Cyrix's impending M2 microprocessor or even other versions of the MediaGX. Cyrix officials did confirm last week the M2 is on-track for formal introduction next quarter; positioned to compete against Intel's Pentium Pro in mainstream PCs and low-end workstations.

Also in question is how much of a market share the Cyrix chips will garner considering that the Presario system comes sans monitor, which will add another $200 to $400 to the final price tag, and considering that comparably-equipped 133MHz Pentium systems are also now available in the sub-$1,500 price range. Even if Cyrix carves out only a small portion of the estimated 70 million-plus PC unit sales currently dominated by Intel, however, industry analysts said Cyrix could make a good living.

Departure

Commenting on its departure from long-time partner Intel on the Presario 2100, Compaq senior VP and group GM Mike Heil said, "By using Cyrix's MediaGX architecture, Compaq can deliver for the first time a high-quality, full-featured multimedia PC at price points that leading PC manufacturers have not been able to reach before now."

Mr. Heil said the Cyrix-equipped Presario 2100 is being positioned as a value choice for first-time and return PC buyers, saying the Presario 2100 is suitable "for families seeking an additional PC for their home, as well as for consumers who have delayed the purchase of a PC because of price or lack of product features."

Steve Tobak, Cyrix's VP of product marketing, said in an interview with Electronic News that he expects to see fully-equipped Cyrix MediaGX platforms with monitors available shortly at a lower price point. "There will certainly be systems with a monitor priced below $1,000 in the near future."

Cyrix began discussing the MediaGX at the Microprocessor Forum in 1995, at which time the company said the device would be suitable for systems priced as low as $500. Mr. Tobak stepped back from that prediction last week, however, saying he doesn't expect to see fully-equipped PCs at that level any time soon but the intent is to drive the price-point down below $1,000 for fully-equipped systems, making them more accessible to the estimated 60 percent or so of U.S. households that don't yet have PCs.

"If you add up all the different functions the GX replaced, you still get about $100 cost of bill (of materials) that the GX replaces over a standard Intel architecture system. If you compare megahertz to megahertz and apples to apples, we still have a significant $200-$300 price advantage at retail," Mr. Tobak asserted.

Price Lineup

Cyrix's MediaGX processor family is initially available in a 120MHz version, priced at $79 each in quantities of 1,000 units; and a 133MHz version, priced at $99 each in same quantities. The company plans to roll out additional versions throughout the year with a planned 200MHz version expected to be available by year-end. The MediaGX comes bundled with the MediaGX processor, Cx5510 companion chip, video drivers for various operating systems and BIOS extensions.

The MediaGX ostensibly eliminates the need for L2 cache, memory controller, graphics controller, graphics memory and audio card. It also comes on a smaller, four-layer motherboard than standard PCs, and uses lower power (40 watts). The Presario 2100 system can be upgraded from the basic 24MB of memory to 64MB, while the Cyrix MediaGX itself is capable of supporting up to 128MB of RAM, enabling other OEMs to offer systems with higher memory capacity.

Although not socket-compatible with competing Intel Pentium processors with MMX, Cyrix's 120MHz and 133MHz MediaGX processors have equivalent Winstone 97 performance to Intel 120MHz and 133MHz processors, Mr. Tobak said, because the graphics acceleration and memory control functions are operating at a higher frequency than Pentium-based systems. The MediaGX is also the first line from Cyrix that matches Intel processors on the MHz level, rather than matching only on the P-rating performance benchmark which, Cyrix claimed, showed that its lower-speed processors had equivalent performance to higher-speed Intel devices.