Intel's XScale unit on the auction block?

$250 million in revenue sure doesn't get you as far as it used to. The Mercury News is reporting that Intel's XScale group, whose PXA-series application processors power many a modern smartphone (not to mention embedded devices of all sorts), might be on a laundry list of Intel groups and subsidiaries the chip-monger is looking to offload in an effort to focus on its core businesses (read: make money). XScale is certainly one of the larger groups on the block, and with a reported $250M in revenue last year, we imagine they're profitable -- leaving us to wonder why Intel wants the quick hit of cash in exchange for abandoning the increasingly vital mobile segment. It wouldn't be the first time an industry giant's moves have bewildered us; we guess that's what makes them bean counters, and us bloggers.