I think you both forget the business model. Neither nVidia or AMD can make a profit only selling and developing highend cards. And AMD will exit it a lot sooner than nVidia for the same reason.
I wouldnt be surprised if Intel commands 75%+ graphics share in Q1 2016 for example with the much broader range of GTe products and GT4 models. And with rising IC design costs, wafer cost increase and Intels continual node lead. Its simply gonna be a point where dGPUs cant make money. Then it doesnt matter if dGPUs are still faster. Because there will be no new development. Its all about ROI. The only question left is, where is that point.
I agree with the only high-end not being feasible point.
But I actually thought Nvidia would go down first.
If IGPs are the future, then AMD's GPU division would still live.
Their APUs can match Intel's IGP performance, they just can't sell enough because of lackluster CPU performance.
If AMD could get its CPU IPC competitive again then it has a better chance than Nvidia because Nvidia doesn't make any APUs, so they have nowhere to go.
Intel'Intel might be able to eliminate the $150 GPU market but that's it.
But the low-end is always the biggest part of a market, so Intel would really do a lot of damage. Could Nvidia and AMD survive from high-end parts only?
What does this have to do with Intel's ability to make a big part of the dGPU market obsolete?
As far as mobile is concerned, which where the main battle is, nobody gets a dGPU to browse the Internet, its for games.
Games tend to get more demanding with time.
What I was trying to say is tjat supposedly if Intel increases its iGPU performance by 15% every generation then they still shouldn't be able to catch Nvidia/AMD because GPUs have large performance increases between subsequent gens. Intel isn't chasing a standing target, its a moving target & unless they literally double their IGP performance every gen, dGPUs will still offer more performance.
If there were 5-7% increase between subsequent dGPU gens like how it is on CPU market, than Intel could eliminate them fast.
Let us consider a hypothetical situation.
Intel could be targeting gtx 770m performance.
They could be thinking that suppose the current Haswell IGP is 15% slower than the 770M. With Broadwell they can achieve a 30% higher performance in IGP. But then Nvidia releases Maxwell which is 30% faster than 770M.
We are back where we started.
If Intel is getting 40% faster every gen, then it would still take them 3 more generations to catch up.
Finally, TSMC needs to get their s*** together. If new nodes keep getting delayed, like how 20nm has been then, Intel might be able to eliminate dGPU faster. Then what is TSMC going to do, they loose both AMD/Nvidia GPU business, Apple can't compensate for that.