I want you to take a ride on Mr. Peabody’s wayback machine to 1980. Intel, the undisputed 8-bit microprocessor king had stumbled. Xerox had just selected Motorola’s 16-bit processor for their next generation word processor (the predecessor of the office PC). That loss was the tipping point for Intel technology.
Week after week another Intel customer announced their intentions to “play with another team.” Intel was on the ropes. Japanese competitors were waging a price war on DRAM and EPROM memory chips while Motorola and Zilog were giving them Hell in microprocessors. It was a two-front assault. Many predicted doom. The stock was tanking.
In Santa Clara the sky was officially falling.