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Intergraph debuts sub-$2,000 workstation

The announcement comes just days after Gateway also introduced a sub-$2,000 Pentium II desktop, and more models should fall under the benchmark this fall.

Intergraph (INGR), well-known for its high-end personal workstations, today introduced a new 300-MHz Pentium II system for under $2,000.

Intergraph says the new TD-225 will be targeted at mainstream business users and content creators. In addition to the 300-MHz Pentium II, the system includes a Windows 95-based system with 16MB of memory, a 1.7GB hard drive, a 24X CD-ROM, and Intergraph's Intense 3D 100 graphics accelerator.

"The Intergraph franchise is built around graphics subsystems. The company is accustomed to higher margins with their workstations, [but] they've come a long way in terms of being able to deliver products at lower price points," says Scott Miller, an analyst with market research firm Dataquest. "This could give them a bigger base to sell their higher-end graphics products to," he added.

Intergraph's announcement comes just days after Gateway 2000 (GTW) released a fully loaded 233-MHz Pentium II PC with a 17-inch monitor for under $2,000, a deal which will likely set a benchmark for consumer systems during the holidays.

Prices on Pentium II systems should continue to drop into the sub-$2,000 price range as Intel is expected to announce further processor price cuts on November 1, in an effort to push the company's newest processors into the consumer market.