Monday, July 14th 2008

GeForce GTX 200 ''Worst Product Launch in the History of NVIDIA'' - Vendors

NVIDIA has been the 'hare taking a nap' for the past 18 months or so, just that when it woke up (or rather woken up), it realized that it's another hare that just blew by it. In other words, the Radeon HD 4800 series has not only proven to be a 'challenger' to NVIDIA but also a winner. There are (only) two winners here, ATI and you. The 55nm RV770 is very economical for ATI to make, sell and use in a variety of products. The same RV770 goes into making the HD 4850 that brought the GeForce 9800 GTX to its knees and forced NVIDIA to bring in a GTX+. And then you have the HD4870 which made spending $449 on the GeForce GTX 260 a joke. Yes it overclocks well and what not, but still didn't warrant that $150 price difference. Hence, over a period of three weeks or so, the GTX 260 is pushed down, 'way down' in NVIDIA's terms (explained later) to $329, which e-tailers such as Newegg.com can give you for as low as $299.

This means great news for you, like I said, there are only two winners, ATI and you. ATI gets its share of the $300 graphics card shoppers, while you get to choose between HD 4870 and GTX 260. What does NVIDIA get? Trouble. Sure the GTX 260 is selling, but selling at a loss. It takes around $100 to make the GPU alone. Selling the whole card for $299 inclusive of all taxes hurts NVIDIA, and hurts partners and retailers even more. TG Daily spoke with several retailers, some of which while maintaining anonymity, are quoted saying about the GeForce GTX 200 series as: "the worst product launch in the history of NVIDIA", also revealed is that NVIDIA could be selling "less than 3000 GTX 260/280 cards per month" in the North American markets.

In other words, retailers are not happy with NVIDIA and their stranglehold over pricing their products at both the retailer and board-partner level. Here's a chart tracking the fall of price for GTX 260:
And that of a certain GeForce GTX 280 model:

Speaking of the GeForce GTX 280, I admit, it's a brilliant piece of machinery. It is the one true successor to the 8800 GTX. But with products worth $300 getting close its level of performance, a 120% price margin doesn't warrant it. And also that the R700 promises significantly higher performance at a region-specific $500~$550 price-band, adds to its woes. There is a change in marketing strategy for NVIDIA and its vendors. They are cutting down on advertising GTX 200 series cards. Reason being that while sure, you have those cards selling at low prices, they can't afford to spend more in popularizing the product. Hence several e-tailers have started advertising those products NV can afford to sell at low prices. It's a great opportunity for NVIDIA to flush their current products off the market, cards such as 8800 GT, 8800 GTS 512M, 9600 series, are now selling at great prices, with discounts you can get them in the $90 ~ $150 band. It adds value since "Whatever your favorite game, an Nvidia GeForce 8800GT in SLI mode (that's 2) provides the best bang-for-the-buck performance for less than $299," says a promo.

Also with these cards facing slashes, if you happen to own a 9800 GTX, 8800 GT, GTS, etc., you can ramp up to SLI at great prices. That also applies to ATI products, with HD 3870 already below the $130 mark and MSI bringing in HD3870 X2 for $ 299 which isn't recommended for first-time buyers since HD4870 equals its performance.

Will GeForce GTX 200 series be remembered as a repeat of "Radeon 9000 > GeForce FX" episode? The answer is no, since NVIDIA does have a whole fleet of 55nm parts that increase yields ( = cheaper), making it to competitive, higher performing products. Unless that happens, and the next round of competition takes place we can't sync with what vendors are ranting about. As for now, celebrate this opportunity, gear up for summer with the latest video hardware, upgrade your rigs. God bless competition.
Source: TG Daily
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43 Comments on GeForce GTX 200 ''Worst Product Launch in the History of NVIDIA'' - Vendors

#26
cdawall
where the hell are my stars
MegastyCome on, every single Ultra in the FX line was an overpriced POS that couldn't keep up with anything ATI put out. The GTXs are respectable performers that were terribly overpriced. There is a difference :roll:
not all of the cards are out yet ;) there are still the 4850X2 and 4870X2
Posted on Reply
#27
jocksteeluk
The AMD 4800 series is the best thing to happen to Nvidia for quite some time.
Posted on Reply
#28
mlupple
jocksteelukThe AMD 4800 series is the best thing to happen to Nvidia for quite some time.
Well not for NVidia as a business, but it's the best thing to happen for GPU consumers. Now we'll get better shit from NVid for cheaper.
Posted on Reply
#29
Darkrealms
jocksteelukThe AMD 4800 series is the best thing to happen to Nvidia for quite some time.
I agree with that. IBM died as the PC authority because they fell asleep for too long. I don't think Nvidia has been asleep that long and this should help wake them up and keep them advancing their products.
Posted on Reply
#30
cdawall
where the hell are my stars
maybe they will use a new design on there GPU's? i tihnk the stuff based off the old ti4x00 series may be getting a bit outdated ;)
Posted on Reply
#32
btarunr
Editor & Senior Moderator
lemonadesodaGraphs without labels :slap:
There's text above each graph describing it, follow link to the source to verify.
Posted on Reply
#33
Airbrushkid
To the hardest game on GPU's is Crisis. Nvidia still beat Ati's 4870 X2 in His res.
Posted on Reply
#34
Palit_Guy
Palit Representative
Ahhhhhh, it's great to see the ATI vs. NV flames of war are still burning in the community.

Burn baby burn.
Posted on Reply
#36
bill_d
AirbrushkidIt seems both Ati and Nvidia are having problems. Yes Nvidia lowered there price. But your missing he fact that AMD stock has drop to $6.00 a share. Last year it was at $12.00. If something doesn't happen soon Ati will fall fast. Maybe AMD will have to sell Ati. Just think Nvidia buying up Ati....
hmm amd stock was the same all this year up and down 4$ to 6$, now nvidia 30 day ago was 25 now 11 and falling
be more like intel to buy nvidia
Posted on Reply
#37
Hayder_Master
that's it what we all talking about from the beginning ,
Posted on Reply
#38
yogurt_21
I dunno about the worst launch in nvidias history, the nv1 didn't fare so well and the nv2 was canned bcause of it, ironically though the fx bludered in performance, but did farely well in sales. it's hard to say though as the 9800gtx, 9600gt and 9600gso are placed on the lowed which is where most of the sales are, so sure looking at the gtx280 and gtx260 the slaes aren't so grand, but that's the highend, the sales are never really that great. so I dunno, being that this is a blended product line it's hard to seperate the gt200's from the g92/g94's with that in mind, I seriously doubt this is the worst launch.
Posted on Reply
#39
Megasty
I think vendors were speaking of it from initial launch sale prices. That's the only thing they care about anyway. Lowered sales produce lower profits. Lower prices only eat away at those profits. NV do promise price guaranties with ridiculous price reductions but profit are still effected. Seeing that it was just 2 cards they were judging, I can hardly call that a proper launch. If you count the 9800s & 9600s into the mix as the mid-low end, then it was a respectable launch so I don't think they are doing so.
Posted on Reply
#40
Palit_Guy
Palit Representative
I think when anyone establishes a history of doing well, any mistake they make gets over emphasized.

The launch of a product has always been a good indicator of how well it sells over the next year. For example, the first company to launch a new card is the one that gets all the reviews AND compared to the competitors' previous gen products.

When the other company then launches their next gen product, you see an apples to apples comparison. But the damage has already been done. When you read the new review the results of the FIRST review are still in your mind. This leads to a "feeling" that the first card is better than the second card regardless of whether or not the benchmarks support that conclusion.

So even if you read all the benchmarks and reviews and forum comments, at some point, you still have to reach into your wallet and make a purchase. Of course there are some people that make a decision using only the benchmarks/reviews/opinions, but the VAST majority by with their heart so to speak. This is the way ALL products are purchased from vacuum cleaners to video cards. Don't forget I'm just talking statistically here.
Posted on Reply
#41
Palit_Guy
Palit Representative
So what we have is a typical NV launch. What is different here is that ATI has launched a product soon enough after and with enough media coverage to "dilute" what would otherwise be a couple months of conversation exclusively about NVidia.

It has been a long time since ATI competed on this level with NV and everyone is used to NV having all the attention. The fact that it isn't this way, IMO, is not so much an epic fail on NV's part, but a sign that the leadership at ATI has restored to the people they hired to bring product to market the ability to actually get the job done. Basically, ATI is just doing what they are supposed to be doing as a company.

This is what the media has failed to see, again, IMO. The story here is NOT that NV screwed something up, but rather that ATI has finally done something right. Not just with the hardware but with their marketing and product management teams.
Posted on Reply
#42
WarEagleAU
Bird of Prey
I dont remember Nvidia fumbling so badly any previous time either. However, their prices are now really competitive.
Posted on Reply
#43
MKmods
Case Mod Guru
I love watching people that have no business experience saying how Nvidia sucks so bad..
Remember cost is relative.. to me $500 is a lot, to my bro its nothing.

rather than freaking out relish the fact that a pair of 8800s-9600s is amazing for the low $200s.

I cant wait to see what happens to the mid range prices when they introduce the 9800GT and 9800GTX+..

And highlighting how poor the stock of ATI or Nvidia is look around (check out GM)
Posted on Reply
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