Intel, ever pushing forward in its quest for CPU dominance, has released what it hopes will be considered a Core 2 CPU on the cheap, the Core 2 Duo E4400 and E4300. These CPUs are much like their big brothers except that they are based on the new Allendale core which has 2MB of L2 cahe, and a FSB of 800MHz instead of 1066MHz.
Probably the best thing about the new E6420 and E6320 processors is the fact that the price is set to stay at exactly the same level as the current E6400 and E6300 processors, meaning that you'll be getting the benefits of an extra L2 cache for free. With this happening, it's leaves room for Intel to expand the bottom end of its line-up with more processors with a 2MB L2 cache; this is where the Core 2 Duo E4000 series processors come into play.
These chips are based on the real Allendale core, which only comes with 2MB of L2 cache natively. This is unlike the Core 2 Duo E6400 and E6300 chips, which were actually Conroe cores with 2MB of L2 cache disabled.
Intel, by introducing a low priced Core 2 CPU in its product lineup, is making a smart move in my opinion. By keeping a low priced Core 2 CPU available, the company can expand its other Core 2 CPUs without alienating anyone on the market. It is obvious Intel has learned a thing or two from AMD.