what their doing is forcing nvidia up a market segment.
ever since the 8800 series walloped amd senseless they have had to claw back from the bottom. when they did so they preformed a fortification system.
they would focus their efforts on strengthening their lowest end and then move up. the APU is one such fortification. nvidia rather than compete directly with or udnercutting the amd products has simply moved up because their revenue is at the higher end anyway. amd has then been moving up market segments
in the 5000 series it was the 5770 that got the attention, with the 6000 series it was te 6850 getting reinforced with the 6790 and the apu. with the 7 series they have a fresh line of lower fortifications from trinity and the hd 7800 series is where the attention is being given. and nvidia rather than undercut or directluy compete has simply gone up a price segment.
nvidia's financial results reflect this alot actually with their revenue up 15% and their profits down from last year. they are judging revenue as the measure of success
i expect next gen nvidia will have a killer high end gpu forged of mithril, a #70 series card thats compareable to AMD's high end and then the gtx #60 series will be given little attention and will get crushed by amd's competitive thrust upwards.
this trend will continue until AMD has effectively tossed nvidia into a price tag that nobody wants to buy cards for at the high end. which puts them in a very bad spot financially.
amd tried doing this to intel back in intels 1st pentium IV run before the move the lga 775. and if left unchecked this innovative dilema will send nvidia without a paddle down sh!ts creek
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