A Video Card War? . . .

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Digitimes reports that AMD will cut the prices of its HD 3850 and 3870 by $20.

Given that the price of the GPU is probably around $75-100, this is a substantial cut.

nVidia may follow, indeed, prices on the 8800GT will go down once there’s a decent supply of them, nVidia GPU cut or not.

While I certainly have nothing against a video card price war, why is AMD pulling the price trigger just two weeks after product introduction, especially since the price had been lowered just before launch?

After all, it’s not like the company is suffering from excessive profits. Maybe they’re so desperate for something new and profitable they can make in volume that they’re cutting the price to stuff the channel with product and their financial statement with some profit.

Then again, Digitimes also reports that nVidia will debut the GeForce 9 series of cards mid- to late-February. High-end first, mainstream in the summer.

Hmmm, introduce a midrange but better product at a low price to force AMD to discount, then charge a lot for everything above it. Haven’t we heard this one before?

Something to think about in the months ahead.

Ed


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