The never-ending rivalry between Intel and AMD was revitalized this week, as Intel announced up to 31% price cuts, targeting especially its Core 2 Duo processors. This is the second major price cut for Intel this year, after slashing prices in half earlier in April.

Intel has dropped prices on Its 2.40-GHz Q660 Intel Core 2 Quad Processor by 14 percent, from $224 to $193, while the 3.16-GHz E8500 Intel Core 2 Duo has dropped a whopping 31%, from $266 to $183.

The 3.0-GHz E8400 now costs $163, down 11 percent, while the 2.60-GHz E4700 Intel Core 2 Duo processor had a 15 percent cost reduction, reaching the $133 price tag.

The prices of some of Intel’s Xeon processors went down 11 to 12%. The X3220 (2.40-GHz) and X3210 (2.13-GHz) now cost $198 instead of $224, while the E3110 (3.00-GHz) is now $167 from $188.

One possible explanation for the price cut could be either to make room for the Intel Centrino 2 platform recently introduced, or to put some more pressure on AMD.

Intel continues to break the now thin line between high end and low end markets, by constantly refreshing its product line and offering AMD a competitive environment in terms of both pricing and performance.

Last week, Intel revealed its Intel Centrino 2 processor, offering improved performance and graphics alongside longer battery life, in a combination that give users the best set of options, as well as a variety of capabilities.

The Intel Centrino 2 processor technology contribute to the laptop’s battery life and performance through new processors and chipsets, faster draft 802.11n wireless and business-class manageability capabilities, as the company explained.

Intel also revealed that later this year, it will begin shipping it's first ever combined WiMAX/Wi-Fi module, part of the Intel WiMAX/Wi-Fi Link 5050 series which is optional for Intel Centrino-based laptops.