Some think AMD should go back to price/performance strategy of HD4000-6000 series instead. If GK114 launches, and we see HD7950 at $199 and HD7970 at $279 and HD7970 GE at $329, we'll put this theory to the test. According to the same sources that started hinting that HD8000 was not launching until Q4 2013, GTX700 has also been pushed back to a similar timeframe. NV might also postpone GK114 because if you say they'll launch a 2304 SP GK114, then it'll make the Titan even more overpriced than it already looks now. Instead, NV could just continue selling GTX680s for $400-450 and Titan at $900, milking both chips with highest profit margins, without even needing GK114. Since GTX670/680s are still selling in retail for $350-550, they must be selling well enough for NV not to have to lower their prices. Then why would NV rush GK114 if they can milk old tech just as the same as AMD will be doing with HD7000?
If both companies stand pat, except for Titan, then AMD could be OK. We'll assume that since nVidia hasn't started a price war already, that they have no intention of it. If they did, I think they could really hurt AMD. Although, it would hurt them as well.
If nVidia refreshes Kepler though, they could possibly increase performance at each price point by say 15%-20% and without cutting prices flip the field on the perf/$ advantage that AMD has now. If this year has proven anything it's that AMD has to be better perf/$, and by a fairly substantial amount, or not enough people are going to buy it.
It seems though that the R&D cost and rendering a product obsolete every year isn't the best business model for either company. They need to take a page from Intel's playbook and have separate lines, maybe. Have a mainstream series and an enthusiast series that can be refreshed independently. I think Titan and GK104 could offer this. GK104 is the mainstream product and Titan could be the enthusiast product.
Short of leaving a huge wall of text outlining the entire model, let's just say that it would require a whole new level of support, not dissimilar to what they do for Quadro, just aimed at the enthusiast rather than the pro user, and designing products to not be throwaway.