Imminent war of attrition?

As AMD and Intel report disappointing earnings, the price of computers continues its downwards spiral. Intel certainly did not anticipate the success of the sub-$1000 category, but AMD and Cyrix have failed to capitalize on the opportunity. The problem is that a bitter war of attrition will hurt the smaller players just entering the field. But then, perhaps they will address the lack of new features to excite one enough to buy a new PC. Or perhaps, they will find a solution to the root cause of high computer cost: bloatware.