Originally posted by: chizow
Originally posted by: apoppin
The 8500 is the direct competitor of the Ti4200 . . . both are now "old" DX8 cards. ATI has "repackaged" the 8500 as "something else" and it is "discontinued" except by OEMS. If nVidia weren't SO LATE with the FX, the 4200 would be discontinued also (or repackaged into the AGP 8X "version").
Um, no, it was a direct competitor of the GF3 Ti line. If you meant to say it could finally compete with a GF4 after a year of driver revisions, thats a different story.
😛 In fact, I still find it most compared to a GF3 Ti500, which is most certainly discontinued. Repackaging the 8500 as a 9100 makes little sense with the 9500 available and RV350 on the horizon. ATi's trying to fill a market niche with a dated part that simply can't compete.
Do you really think ATI and nVidia are actually making money with these old cards? IMO, they are just trying to "get rid of" old inventory to make room for the PROFIT-making DX9 NEW cards. 😉
Again, I have to question your industry knowledge here. Yes, there is no doubt in my mind nVidia is making money hand over fist on a Ti4200. The A3 revision GF4 core yields are probably close to the 90% mark, so other than fab/mfg. costs (streamlined and perfected at this point), every GF4 core they ship out is profit less the usual overhead. Sunk costs like R&D have long been amortized and calculated into the margins of each core they ship out (in that sense, it is "old-tech").
Also, ATi is probably breaking even right about now with their R300 cores. Low yields = high production costs = low margins. ATi was unable to sustain high enough yields on the R300 core until a good 2 months after its release to produce it en masse. It was released, but it was hard to find and expensive. Further evidence was their delays on the 9500/pro line, which we've all seen use identical R300 cores (possibly binned). The even later roll-out of the 9700 (only a month and a half ago) shows they were finally able to sustain 3 distinct product lines, but realized their need to fill a market segment in the $200 range with the 9500 line. So what does this mean? ATi was willing to sell their R300 cores at a lower MARGIN in exchange for higher VOLUME. It might take 2x9500 sales to generate the same profit as a 9700pro, but when you sell 10x9500's for every 9700pro, the reasoning is quite clear.
As for DX9, I'm sure everyone is going out to buy a DX9 compliant part so they can run the ATi demos
EDIT: ATI DID steal market share from nVidia this last quarter. We won't really see it "get messy" 'till this quarter as nVidia slips further.
No, the industry as a whole grew. ATi experienced a slight % increase in growth, but that is all relative to the companies overrall size. nVidia retained its "piece of the pie", so ATi may have picked up their market share from Sis, Intel, 3dlabs et. al. As for claims of it getting messy, isn't that what you said 6 months ago? Maybe next year, or the year after that, or the one after that.
😛
Chiz