Print 34 comment(s) - last by victory.. on Mar 22 at 12:52 AM

AMD to cut prices on HD 3000-series in light of NVIDIA GeForce 9 price trend

Late last month NVIDIA launched its first card in the next generation GeForce 9 series of graphics cards and the manufacturers suggested retail price was set modestly between $170 - $190 range. In response to NVIDIA's 9600GT launch AMD cut prices on its latest offerings. The price of the HD 3870 model was cut down to $189 from the original $249 mark while the pricing on the HD 3850 was lowered $30 to $169.

Since the launch, NVIDIA's GeForce 9600GT produced some attractive benchmarks numbers as it comes in just behind the 8800GT in many PC game tests and even claims a few steps past AMD's HD 3870 in a handful of PC game tests.

Since then retailers such as Newegg cut pricing below the original MSRP of $169-189, down to $150 on NVIDIA GeForce 9600GT models.

In response to this, AMD is set to cut prices yet again on its Radeon HD 3800 line. Independent retailers tell DailyTech they are receiving partner pressure to drop the price on these cards below the corporate pricing set just a few weeks ago.

These retailers state the pressure is a direct retaliation to the GeForce pricing, which is also uniformly below the MSRP.

Radeon HD 3850 are said to hit prices as low as $140 with the HD 3870 trailing behind at $160 to compete with the GeForce 9600GT.

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RE: Let the games begin.
By Carter642 on 3/20/2008 6:20:16 PM , Rating: 2
The only thing I really worry about is that AMD/ATI is basically practicing undercutting on every single product that they make in order to sell them against their Intel and nVidia counterparts.

That's all good for generating sales but I doubt that a 3870 really costs much less in terms or manufacturing/R&D than a 8800GT, certainly not $100 per card. In terms of manufacturing/R&D dollars the more performance you can pack into the flagship card of a family (i.e G92 or R600) the more room you have to position cards upmarket of your competition and the more money you can make over the entire family of products.

Even though the X2 is compeditive with the G80/G92 family's high end single GPU cards AMD/ATI is never going to see much profit on it unless they go and build a whole product family on the X2's base. True nVidia is in the same boat with the 9800GX2, then again they're not losing 1.7bn a year either.

AMD/ATI must get on par with nVidia and intel's next gen product lines or they'll be forced to continue chucking away their profit just to move product. If they fail then AMD/ATI might be in alot of trouble.

*wants to donate spare brain power to AMD/ATI engineers*

RE: Let the games begin.
By Sureshot324 on 3/20/2008 7:51:51 PM , Rating: 2
Current ATI card are 55nm while Nvidia is 65nm, so ATIs cards are going to be considerably cheaper to produce. I suspect this is also why ATI is able to fit two GPUs on one card while Nvidia is force to use two PCBs.

RE: Let the games begin.
By StevoLincolnite on 3/21/2008 8:12:48 AM , Rating: 2
Possibly, but this wasn't ATI's first attempt of placing 2 GPU's on the one PCB (Rage Fury MAXX anyone?)
nVidia also bought out 3dfx who were the masters of multi-GPU solutions, like the Voodoo 2 SLI, Voodoo 5 with it's 2 - 4 GPU's on the one PCB, But for some reason they don't seem to like taking that route.

RE: Let the games begin.
By victory on 3/22/2008 12:52:48 AM , Rating: 2
And nVidia let the Voodoo brand disappear.
The 3dfx bankruptcy trustee is suing N for
fraud, and the 3dfx stockholders committee
is suing N for the remaining payment under
the December 15, 2000 agreement between N
and 3dfx. I sometimes think N hides from
3dfx technology because of the legal actions.
I am a 3dfx stockholder.

"Young lady, in this house we obey the laws of thermodynamics!" -- Homer Simpson
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