Price war coming?

[dug777]

A price cut can get people who weren't going to buy to buy, and get people who were thinking of buying a cheaper item to step up to a higher ticket item.

Sales drive traffic.

Globviously 😉

It also directly hits your ASP, which isn't so great. Like most things, it's a tradeoff...

One presumes that DAMMIT is selling everything they can make with a Cypress core, hence no need to drop prices and to maintain healthy profit margins.

 

[betasub]

I'll be in the market for a new card for a new rig in a week or so.

The $200 price mark is my target.

The GTX260 1GB @ $180ish would be ideal.

Forget the GTX260. It's the GTX460 1GB you should looking at.

 

[Dribble]

Took a look at prices of the GTX 460 768mb yesterday as a friend asked my advice on what new card to buy, and at least in the uk it is now really cheap, like cheaper then all the radeon 5770's cheap.

e.g. overclock.co.uk has the cheapest GTX 460 at £112, where as the cheapest 5770 is £123 (although you can get cheaper 5770's elsewhere).

It's only a few months ago that the cheapest card you could buy was the GTX 470 for about £300, now you get most of that performance for £112.

 

[Acanthus]

Forget the GTX260. It's the GTX460 1GB you should looking at.

Yeah, typo.

 

[extra]

Nvidia needs market share. ATI has overtaken them. They need to keep market share at all costs imho. If they lose market share, they can't justify vendors using their proprietary crap like physx.

 

[taltamir]

regarding the cashflow discussion, guys I don't think that really holds water considering Nvidia has some $X billion in the bank.

thats what I was thinking... it would have mattered if nvidia had run out of money and needed to find ways to make payroll, but its sitting on enough money to cover all expenses for years to come... thus it is concerned only with profit margins, not cashflow.

 

[WelshBloke]

Took a look at prices of the GTX 460 768mb yesterday as a friend asked my advice on what new card to buy, and at least in the uk it is now really cheap, like cheaper then all the radeon 5770's cheap.

e.g. overclock.co.uk has the cheapest GTX 460 at £112, where as the cheapest 5770 is £123 (although you can get cheaper 5770's elsewhere).

It's only a few months ago that the cheapest card you could buy was the GTX 470 for about £300, now you get most of that performance for £112.

Weirdly enough those prices are reversed at Scan( £123 for the cheapest GTX460 768MB, £112 for the 5770)

 

[MegaWorks]

Absolutely Incorrect.

Step 1: Revenue - Cost of Goods Sold = Gross Profit

Step 2:
Gross Profit
- Selling, General and Administrative expenses (SG&A)
= Earnings Before Interest and Taxes (EBITDA)

Step 3: EBITDA - Depreciation/Amortization = EBIT

Step 4: EBIT - Corporate Income Taxes = EBI

Step 5: EBIT (Cash Flow) after taxes or EBI
+ Tax Depreciation/Amortization
+ Non-recurring/one-time expenses
+ Change in Non-Cash Net Working Capital (Annual Change in Current Assets - Current liabilities)
- CAPEX (capital expenditures)
= Undiscounted Maintainable Free Cash Flow From Operations

Alternatively, you can work backwards:

Net Income Before Taxes
+ Interest Expense
+ Amortization/Depreciation
+ Non-recurring/one-time expenses
+ Change in Non-Cash Net Working Capital (Current Assets - Current liabilities)
- CAPEX (capital expenditures)
= Undiscounted Maintainable Free Cash Flow From Operations.

Somebody went to school! 🙂

 

[RussianSensation]

Somebody went to school! 🙂

Let's hope they taught me right 😀

 

[Tsavo]

Let's hope they taught me right 😀

Good! Go to work for GM and tell em their goodwill isn't worth 30 billion. :awe:

 

[bryanW1995]

Nvidia needs market share. ATI has overtaken them. They need to keep market share at all costs imho. If they lose market share, they can't justify vendors using their proprietary crap like physx.

physx isn't working b/c the implementations of it suck. as we have discussed ad nauseam in the forums, if something brings significant, repeatable and obvious benefits (such as AA) then it will be accepted with open arms. If that something is available on any gpu it is even more likely to be adopted. if it causes a huge performance hit, is only used on a few games, and can't be used on 1/2 the video cards on the market then it is nothing more than an excused for biased gamers to make the purchase that they wanted anyway. or in most cases more likely just a marketing bullet point. compare physx to 3d vision, however, and at least then you can have a discussion because 3dvision really adds something to your gaming experience.

 

[Powermoloch]

i love price wars. IT benefits the consumer 🙂