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Declining to follow the price cut plan

DailyTech revealed last week ATI's new pricing strategy to compete with NVIDIA's GTS 250 rebrand, also known as the 9800 GTX+.

The ATI Radeon HD 4850 512MB was to drop to $129, while the Radeon HD 4870 512MB was scheduled to be cut to $149. This was supposed to be accomplished primarily through the use of mail-in rebates, which ATI would help offset.

Most of the board partners took up the offer on the 4850. However, due to several factors converging at once, the 4850 can now be picked up for around $120 at several e-tailers, albeit with the mail-in rebate.

The story with the 4870 is something else entirely. The Radeon HD 4870 512MB was supposed to drop to $149 with a mail-in rebate, but some of ATI's graphics card partners are resisting this as they feel that since the card outperforms the GTX 260, it should compete against that card. They instead are positioning the 1GB version of the 4850 against the 1GB version of the GTS 250 at the $149 price point.

One of our sources in Taiwan told us: "The ATI lineup is very strong, and we feel the 4850 should go against the GTS 250 and the 4870 against the GTX 260".

ATI has been very aggressive with its pricing, with lower prices and higher performance in the same segments as its nemesis NVIDIA. This has led to declining revenues for board manufacturers, already hard hit by lower demand due to the global recession.



GTX 280

ATI Radeon 4870

GTX 260 Core 216

ATI Radeon HD 4850

GTS 250

Stream Processors






Texture Address / Filtering

80 / 80




64 / 64







Core Clock






Memory Clock


900MHz GDDR5 (3600MHz eff)


993MHz GDDR3 (1986MHz eff)


Memory Bus Width






Frame Buffer






Transistor Count






Price Point






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RE: Huh?
By afkrotch on 3/11/2009 4:09:47 PM , Rating: 3
Nvidia should drop the price on the GTS 250, then lower the price of the GTX 260 to match the HD 4870. It's a win win for the consumer.

RE: Huh?
By lagitup on 3/11/2009 8:30:00 PM , Rating: 3
I don't think nVidia can afford it, with the gt200's die size and whatnot, else they probably would've done that already; what company would let their competitor outmaneuver if they had another option?

RE: Huh?
By murphyslabrat on 3/12/2009 1:03:08 AM , Rating: 5

RE: Huh?
By Spectator on 3/12/2009 4:43:13 AM , Rating: 3
Intel with its SSD's also :P

RE: Huh?
By SiliconDoc on 3/13/09, Rating: -1
RE: Huh?
By Targon on 3/13/2009 8:13:21 AM , Rating: 3
I think you need to look at things from a different perspective than the official numbers that come out, because "creative accounting" can often come into play.

If you look at what has happened to the economy, stock prices have dropped so far that things like how much was paid for something can be very confusing. If you bought a house three years ago for $400,000, and it is currently worth $250,000, the current value has dropped by a lot, and as such, you have lost money. The ATI purchase was done during a better economic time(globally), so when times are bad, claiming losses is a standard practice to help with the balance sheet.

The Radeon 4000 series has been selling VERY well, but the declines in the economy have hurt every company. Claiming more losses from what has been a done deal for a while does not mean AMD is not making money on the GPU business. If anything, the chipset business is the only part of AMD that has not been looking up in the past two months.

The Phenom 2 looks fairly popular these days, and the Radeon graphics products are also doing well. Why we don't see more systems with AMD 780 and 790 chipsets is the only area where NVIDIA is holding a clear lead, and is something I would love to hear some talk about. Why are so many systems sold with a Geforce 6150LE chipset on them compared to a 780G chipset?

RE: Huh?
By SiliconDoc on 3/13/09, Rating: -1
RE: Huh?
By aharris on 3/13/2009 2:55:31 PM , Rating: 1
RANDOMLY capitalized WORDS really HELPS your POINT hit ITS mark.

"What would I do? I'd shut it down and give the money back to the shareholders." -- Michael Dell, after being asked what to do with Apple Computer in 1997

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