Thursday, March 25th 2010
AMD Comfortable with Current GPU Pricing, No Cuts in Sight
A little later this week, NVIDIA will release two of its front-line GPUs that are compliant with the latest industry standards, notably Microsoft DirectX 11. This brings competition to AMD's high-end Radeon HD 5800 series and Radeon HD 5970 graphics cards, or does it? Competition often tends to have a pro-consumer effect out of price-wars. Sources indicate that AMD is not inclined to cut prices of its products after NVIDIA's launch of GeForce GTX 400 series. A few factors we think could prevent a price-war:
Sources:
Shane Baxtor, Donanim Haber
- AMD could have a fair idea about how GeForce GTX 400 series GPUs compete with its GPUs, and given that their estimated performance levels and estimated target prices (estimated US $499 for GTX 480 and $349 for GTX 470), the performance/price equation for AMD's Radeon HD 5800 series GPUs iron out, with HD 5870 at around $400, HD 5850 at around $325, and HD 5830 at $240, barring HD 5970, which is being priced at a premium for its premium performance levels.
- Although NVIDIA and its partners officially launch their GeForce GTX 400 series products on the 26th of March, market availability, backed by sizable inventories could just take some time, allowing AMD to maintain its prices.
- AMD is introducing newer variants of its HD 5800 series GPUs, namely HD 5870 Eyefinity6 2GB, and allowing AIB partners to come up with 2 GB models of Radeon HD 5800 series cards.
82 Comments on AMD Comfortable with Current GPU Pricing, No Cuts in Sight
EDIT : I remember people saying the 480 would cost $550-$600 (manufacturing cost due to chip size ) ... so if they are actually launching them @ $499 and $349 they are probably selling them at a loss ... so the chances of nVidia reducing the prices in the future is also very remote ... And as the article says ... if the FERMI performance isnt great there is no reason for ATi to drop prices ... No competition = No price drops = Unhappy customers ... :(
for $100+ more than a 5870, the 480 better give more than lol 10%.. for $0 I can overclock my 5870 and get 15%.
so yes, it all depends on the actual performance of the new Nv cards vs the 6 month old ATI cards.
But AMD, you sons o' bitc**s... put the 5850 on the cheepo level, please. 200$ will just do.
$200 for a 5850 won't come any time soon, not before the GTX 460 or something like that.
Come Nov 2010 and the release of mainstream GT4xx cards, and then I think the 5xxx series could start to lower in price.
Or maybe nVidia will come up with something good, I pretty much forgot about them since my 6600 GT. That would certainly be something to remember.
ATI plays the value-for-money game, so unless Nvidia's cards come close to them in that regard then price-drops are unlikely. People are getting smarter when it comes to purchasing graphics cards too, so if a 20% price premium for a GPU that only gives 10% extra gaming wasn't bad enough, if it chews more power and is noisier too ... well ... people will still buy it, but they will be in the minority. :slap:
We'll all find out tomorrow though!:D
www.brightsideofnews.com/news/2010/3/22/nvidia-geforce-gtx-400-series-available-in-higher-volume-than-radeon-hd-5800.aspx
There is the possibility of a "price war" - but that would depend on demand and market conditions. Both NV and AMD would be happier to leave the prices where they are :)
However, if the opposition is 20% faster but the HD5870 is only 15% cheaper than I would still guess that prices will drop..... I can only guess that ATi have some solid insider information that is tangible on both price and performance for the opposition, if they havent then they might just lose out.