For the price I'm kinda puzzled why they did not take a play form The 295x and water cool it. They could bump the clocks and at least make it more competitive.
I think it is pretty clear that Nvidia got surprised by both the high end CGN 1.1 chips as well as their price. AMD did one thing wrong and that was their initial heat sink design. Even now people are still saying it is loud and uses too much energy, while in reality the custom cooled cards are fine in that prospect.
Nvidia probably didn't think AMD could pull a dual GPU card which stays within limits and got extremely surprised by the fact that the 295X2 was watercooled.
But what to do? You already announced the card, showed it off and bragged about why it is the best and why it is priced the way it is. Nvidia had to release it this way to save their face and I'm sure a lot of people will still buy it.
