The video card scene right now is like watching a boxing match. AMD dealt NVIDIA a solid shot to the face with the 4870 and 4850, causing NVIDIA to lower their prices in an evasive maneuver. NVIDIA has responded by throwing cards at the budget segment under $75. AMD of course disparaged this move, saying it was “quick and dirty,” and said something I feel is insightful:
“If you have the performance high-ground, you can price your products according to performance,” Baumann said. “If you don’t have the high-ground, you have to price them to products around you.”
And AMD is practicing what it preaches. The 4870 was such a good performer they could put it at the perfect price point, and NVIDIA had to accommodate them, and now NVIDIA is pricing around AMD’s offerings because they can’t hit them straight on. It’s a low blow, but what with increasing demand for graphics performance in low-end hardware, it may be the punch they needed to throw.