who the hell buys discrete graphics aside from power users?
By integrating their "mainstream" line of chips with integrated graphics, it allows intel a greater slice of the consumer market, whereas Dell's and HP's before would use an i5 with a 5570, now they are pretty much forced for the sub 1200 market to use intels integrated.
Just intel bullying their way into a greater slice of the market, it takes a chunk out of AMD/Nvida, and im sure some of the R and D is looking into new CPU architectures and process instructions.
Bingo. Most consumers aren't smart enough to realize the performance difference between integrated on chip and discrete graphics. Intel makes more money, bigger market share, and discrete gpu sales die off even further.
Walk into any best buy and 75% of the computers they have on sale use integrated graphics instead of a discrete video card. That's 75% of the new computer market that discrete graphics cards have been cut out from.
The gpu on cpu is the continuation of this pattern. Dumb it down, water it down, earn bigger profit margins because most manufacturers are cheapos who just want to make more money and most of your 'Best Buy' customers don't know any better.
Jut look at how consoles are already dominating the gaming market with FAR INFERIOR hardware. As a result the PC ports of console games suffer from dumbed down graphics, gui, and gameplay. Integrated GPUs are going to bring that same dumbing down, watered down effect to the PC.
Endgame will result in Death of the discrete GPU. Intel laughs all the way to the bank. It's not going to happen overnight but companies like Intel have the patience and resources to implement long term strategies. It's just a matter of time and it's no conspiracy. Look around you, it has already started.
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