Intel has confessed that, yes, it is indeed going to stop bundling RDRAM with its Pentium 4 processors. It's a fair cop, guv.

The chip giant's motive is simple: its P4 price cuts means in doesn't have to resort to giving memory away to encourage PC builders to buy the processor. The company also points to the fall in RDRAM prices, though we note that the drop has come largely as a result of rising P4 demand.

Of course, the real reason is that the third-tier PC companies Intel was targeting with the RDRAM bundle will soon be switching from the Rambus-based i850 chipset to the SDRAM-based i845 (aka Brookdale) or one from VIA, SiS or Acer Labs, and so dangling free RDRAM on front of them isn't going to work any more.

Intel also plans to drop a P4-touting half-year rebate programme. ®