Prices on personal computers based on Intel x86 microprocessors are expected to drop dramatically this summer when Intel announces huge price cuts on MMX chips. For example, pricing on the now entry-level 166-MHz MMX Pentium processor will drop from $255 to $135. A 200-MHz MMX Pentium will fall from $465 to $235, and the recently introduced 233-MHz MMX chip will drop from $555 to $350.

Non-MMX CPUs are also expected to drop into bargain-basement pricing: The 200-MHz Pentium will fall from $240 to $115 and the 133-MHz version will drop from $125 to $85.

Intel's price cuts are designed to move mid-level and high-end machines to the new Pentium II design, which also offers MMX capabilities with Pentium Pro speeds, especially on Windows 95 systems