Originally posted by: VirtualLarry
Originally posted by: MangoTBG
Lets look back when the 9700Pro and 9500Pro arrived. Let's also say nVidia wasn't around. Alright, so all of the Gear-Heads go and buy the 9700Pro $400 the prosumers go and buy the 9500Pro. 6 months down the road the 9700pro has dropped in price so more people are buying them, some who had bought the 9500pro are even upgrading to the 9700pro.
That doesn't make any sense. Without competition, there would be no impetus for prices to go down, unless demand subsequently went down, which would only be due to total market saturation, which is unlikely given the overall number of PC owners.
Originally posted by: MangoTBGSix more months down the line the videocards are even cheaper because people are buying less of them. Why? Because most of everyone already has them. So now even good ol' Grandma and Grandpa can afford the $100 9500pro. We fast forward a year and you're getting a 9500pro just for filling up your tank with gas at the local stop'n'shop.
See where this is going?
Now, introduce the X800Pro and X800XT into the picture, and viola. The cycle starts again. Granted without competition we'd probably see a much slower development than we do now. I, however, am just pointing out that you are false in saying that there would be absolutely zero need to improve when you have market dominance.
Well, unless you design products that self-destruct after every six months. Or software licenses that expire every year, so that you have to purchase a subscription license agreement. (Hmm. Maybe this economic theory of competition, or lack therefore, *does* prove that Microsoft doesn't really have any effective competition in the market any more.)