I scraped together the numbers from today's Sandy Bridge demo and Badaboom and tried to compare apples to apples as much as possible at this point:
http://lee.hdgreetings.com/2010/09/intel-cpu-vs-nvidia-gpu-video-transcoding.html
Is this bad for NVidia?
No, it's irrelevant to Nvidia...we don't have enough info to come to any conclusion at all at this point.
The link is completely invalid due to the extremely small sample time. However, if we take it as gold, then:
1. SB running some sort of optimized binary, producing who the hell knows what kind of quality video (maybe really good maybe bad) is a nice bit, but not a ton, faster than an existing i7 920.
2. An older model mid range Nvidia card (260, NOT A 460) is a bit slower than SB and a bit faster than an existing i7 920. However, that is using Badaboom, which produces really bad looking footage, so who cares how fast it is.
BTW, if just going by a fun numbers game...using DVDFab and CUDA accelerated video transcoding (on a file pre-copied from a regular DVD to SSD for laughs because the drive is too slow to keep the card working very hard, encoding to 720x480 h.264), my oc'd gtx470 transcodes *over five times faster* than that SB sample. Yeah. Woohoo go fermi, and all that--except no, not really...because:
The video looks...well...bad. (Just like video encoded with Badaboom does). So I don't use it, and I don't think really anyone else does either.
So if Intel's optimized transcoding engine is used like a gpu and produces crappy looking footage *golf claps for Intel*.
However, if it's general purpose enough that the handbrake folks can use it and it can get a 25% or more transcoding improvement over an i7, then sweet, job well done.