[Narishma]

They didn't necessarily want x86, it just happened that that was the only sensible option available at the time. What they really wanted was an SoC or APU as opposed to a discrete CPU and GPU, as that is a lot cheaper. And as you say, Intel is too expensive and has no good graphics, Nvidia only has ARM which isn't powerful enough, and IBM doesn't do graphics nor SoCs. Which left AMD which has good graphics, ok CPUs and the experience to put them together in an SoC.