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Was this price point a deliberate market differentiator, or was there some special sauce within FPU that was otherwise difficult to attain?
⇒ I think it mostly was a matter of “that’s what it will have to cost at our typical margins”. Because you get lower yields for larger chips, that meant a larger than 65/30 multiplier.
For my postdoc in 1995, my industry sponsor bought me a then top-of-the range Dell Latitude XP with 100MHz 80486, integrated 80487 coprocessor and 32MB RAM for radar signal processing research.
In Australia at the time, it cost A$10,000, as much as my car.
Even the 24MB RAM upgrade from 8 to 32MB cost USD1,200 ($2,500) in today's money. Which puts current complaints about the soaring cost of RAM into perspective!
But from an Accounting PoV, it was separate chip. With far more transistors than the 8086 CPU. And its cutting-edge (for the time) design and other fixed costs had to be spread over a far number smaller number of units.
Yes...um...it did floating point much faster than it could be done on the 8086. For some users, this was very important (and not particularly important to most others).
At that time, the idea of deliberately disabling features for market segmentation was seen as unseemly and an indicator of an illegal monopoly.
But I would imagine that, for DTP, rasterizing PostScript on the printer would make things a lot easier.
Can't find "good" figures but they were apparently about $100 in 1980 money for an 8088 and about five times that for the 8087, something like that.
That'd be something like $400-odd and $2000-odd in today's money.
Later revisions of 8087 used a standard technology and a shrunk die, with improved yields.
Chips did fit crypto engines, matrix multipliers, FFT offload, and color converters there.