First, many people criticized AMD when they launched the 7970 for $550. Second, there is no hypocrisy. Even though AMD released midrange die chips, their price was low (4870 for $299, 5870 for $379, but really one could just buy a 5850 for $259+OC, and unlocked 6950 for $299). Then came 7970 at $550 but AMD again gave great value with $399 290. Excluding 7970, AMD provided unbeatable price/performance by delivering 80-90% of NV's flagship chip at good prices. The trend has been that it was AMD which continuously forces NV to do very large price drops and it is AMD that constantly establishes new price/performance benchmark SKUs. Whenever NV offered something cheaper with similar performance, it was by $30-50 only (680 and 760). GK104 vs. Tahiti is the exception, not the rule. AMD could very well start selling 25-35% faster "flagship" for $500-550 due to market changes as well, which is why people are saying that prices are going up / it's taking longer to get 2x the performance/$ increase if AMD and Nv will start bifurcating a generation.
Obviously it is logical now that both AMD and NV are reluctant to go back to the past since they saw people spend $500-550 on midrange chips. the strategy of splitting a generation into 2 halves could make more sense going forward since shrinks to future nodes are harder to come by and more expensive. This way AMD and NV could have new and exciting products every 12-18 months by bringing 25-40% 'halves' so to speak. All of this is speculation for Maxwell of course. 880Ti 25-30% faster at $550 is still very good, just not as good as in the past. And also using 780Ti's price is somewhat trivial since we know how overpriced that card is at the moment.
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I'll ask this instead for all those people who say midrange Vs. High end doesn't matter. When was the last time any next generation NV flagship beat the previous generation flagship by only 25-30% on average? It has
never happened (GTX680 is not a true successor to 580 so this doesn't count since we know GK110 is the real successor). Every new flagship from NV beat the last gen by about 45-100%.
http://www.computerbase.de/2013-12/grafikkarten-2013-vergleich/10/
And
http://www.computerbase.de/2011-10/bericht-grafikkarten-evolution/3/
7900GTX --> 8800 GTX = at least 100% faster, 300% faster when using DX9 games
8800GTX --> GTX280 = 61% faster
GTX 280 --> 480 = 49% faster (67% faster to 580 and almost all 480s could overclock to 580 speeds)
580 --> 780Ti = 94-109%
Is we go past that, the leap from GeForce 3 Ti500 to 4600 or 4600 to 5900U or 5900U to 6800U were all greater than 35%, more like 50-100%.
Now some people are saying that midrange vs. High end doesn't matter at all since whatever is the next gen chip automatically defines a next generation??? So it is a real generational flagship jump should 880Ti be only 25-35% faster than 780Ti?
Not to mention that a next gen flagship provides 80-90% of the performance of previous gen SLI cards too. I guess we should no longer expect 50-100% generational improvements???
What some of us are saying is that NV is still going to give us 50-100% generational increases but they could just split the generation into 2 halves. This way they have new faster products to sell every 12-15 months instead of waiting every 24-30 months for real flagships to come out. Is this bad? Maybe for AMD and NV this new way to launch generations makes sense but let's not kid ourselves: a next generation flagship that's only 25-35% faster is NOT a next gen flagship if we use 15 years of GPU history. Even Kepler vs. Fermi shows that this trend still holds.
As already stated, if NV decides to use 16nm/20nm for GM210 (or w/e it's called) then releasing a 28nm GM204 makes sense. NV may also think that AMD will not launch anything 50-60% faster than 290X because they are also power consumption constrained on the same 28nm node. From a business perspective, it would be more profitable selling a 430mm2 chip at $500-550 on a very mature node if NV feels that in the next 6 months AMD can't bring anything that can seriously beat the 880Ti.
It is not just about AMD vs. NV, or the definition if a midrange chip, but the hypothesis that AMD and NV will bifurcate a generation and in turn sell us midrange next gen
performance (if people don't like the idea of calling it midrange chip) for $500-550. I think that's the main point that's bring missed here. Alternatively, we have to accept that next generation flagships should only be 25-35% faster and throw the historical 50-100% out the window.
P.S. And the comments before that 7970 was only 40% faster than 6970 tell half the story. First, an after market 7970 hits 1125-1175mhz with ease. Second, if a gamer looks at 7970Ghz/280X benches vs. 6970, in modern games the increase is 65-90%. The only reason this doesn't seem impressive is because how much better NV executed with Kepler (580->780ti) and because of how weak 6970 is now vs. 580 due to heavy use of tessellation in modern games.