
The price chops affect the Xeon processor series with 2MB L2 cache, essentially the processors derived from the Pentium 4 6xx family. These four processors are clocked at 3GHz, 3.2GHz, 3.4GHz and 3.6GHz. Until yesterday, they were priced at $316, $455, $690 and $851, respectively. Today, they will set OEMs back $256, $316, $455 and $690.
It's possible that Intel will soon introduce a 3.8GHz Xeon DP to fill the gap at the top of its pricing.