Why doesn't Intel just make their own dedicated GPUs? Wouldn't they make more money if they become a third option in regards to graphics cards?
anti monopoly practices
they tried and they failed
They are slowly working on it, increasing the efficency of their integrated GPUs. Kaby Lake will pretty much be a test platform for new GPUs. No improvement over Skylake otherwise.
because they are incompetent. intel has the best GPU architecture perf/watt wise, and they have the best process tech in the world. they could have at least scaled the GPU tech up for a xeon phi-esque product, instead they made that cpu on a card abomination that is much worse than both tesla and firestream cards for gpgpu compute.
also, intel fired a few thousand graphics engineers and are in talks to buy RTG, so that might have something to do with it. AMD's igpus are performing much better than intel's.