According to the source from, Intel had confirmed with the price slash for the quad core XEON processors and Desktop Processors too. For more information, please refer to the link below

Information Week – Intel slash processor price

In this economy situation, this is really helpful. For my personal experience, we always experience price increase significantly when we choose the upgrade of processor spec from 2.6Ghz to 3.0Ghz. The new pricing will allow the vendor to revise their current servers pricing and helpful for us who need powerful chips to support the virtualization environment. I am really waiting the price cuts from the vendor in my negotiation for my additional ESX servers that I plan.