Why are video cards so expensive?

[pctwo]

So AMD is slashing X2 prices by 55%. The X2 3800+ I paid $300 for a few months ago is going to be like $150.

Do we ever get this kind of price wars going with video cards? It seems a decent card for gaming on current games always cost like $2-300, and they don't stay decent for very long. So I'm always stuck playing 2,3 yo games or breaking the bank (which I don't, since I think anything over $200 is just a ridiculous price for a video card).

 

[Kromis]

Nothing "ground-breaking" has happened with video cards...yet... Patience is a virtue, my friend.

 

[JBT]

Video cards increase performance around 50% or more every time a new series comes out. CPU's maybe increase 10-20%??? and have much longer product cylces. Nvidia and ATI seem to put out new series around once a year with a speed bump every 6 months or so.

CPU's on the other hand last for awhile..... how long have Athlon64's and P4's been out???? multiple years here.
Also very rarely are there actaul price wars with CPU's. This is the first good one I have seen in a long time....
On a side note the 7900GT + X1800XT's seem to be having a pretty good price war IMO they have dropped quite a bit in price in the last couple of months.

 

[Griswold]

Why would ATI or Nvidia engage in a price war in a segment that doesnt even come close to the volumes they ship in the budget or mainstream segment? People need to get it in their heads, the enthusiast/gamer market is not where the dough is for ATI, AMD, Nvidia and Intel. It generates money and its good for their prestige, but the $$$ is made elsewhere.