Does anyone really know the prices Nvidia or AMD pay per wafer. Isn't Nvidia supposed to be TSMC customer #1 with the best prices? If that's the case and they are getting better pricing then its hard to say for sure that the extra die size compared to AMD makes it a business failure.
Also what a lot of people seem to miss about the die size relative to Cypress, is that GF100 was NOT designed as a gaming chip. There is a considerable amount of die space dedicated to GPGPU that doesn't benefit gaming performance, and considering JHH has now said Nvidia is primarily focused on parallel computing, that makes sense to a degree. When Nvidia looked at GF100 and thought about how to optimize for gaming, we got GF104 which is much more competitive to Cypress as far as die size to performance.
I think it will be interesting to see what Kepler's architecture looks like as Nvidia has to walk the line between gaming and GPGPU. Maybe someone with more knowledge on the business end can shed some light on this......I don't see Nvidia developing two separate architectures for gaming and GPGPU, but (depending on how valuable the gaming market is to them at this point) wouldn't it make sense for them to build a very scalable architecture that is modular in the sense that they can do what they did with GF100 to GF104, but instead of releasing the GF100 type chip for both markets, they use the original GF100 like chip for Tesla etc and simultaneously pull out the ECC DFP stuff that doesn't benefit games and release a top end beast like normally do. As in make a 550mm GF104 (what the GTX 480 should have been) That way they are maximizing die space utilization in both markets instead of each market having things that are wasted?
If every generation they are using one architecture for both markets and the company leans toward parallel computing, then there will be increasing die space dedicated to GPGPU and it would be difficult to compete with AMD on performance per watt/die size. That to me seems like the biggest reason that Fermi is only 10-15% quicker than Cypress despite the much larger die. If Nvidia can find a way to make two different chips off the same arch. that are more focused on their respective markets we could then see the return of what we were used to seeing out of Nvida > huge dies, but huge performance to match that size.
Is that financially feasible or is the discrete market revenue potential not worth the investment anymore at this point to them?