Bad news for the manufacturers, possible good news for consumers. NVIDIA revised the GeForce GTX 260 (D10U-102) graphics processor (GPU) in an attempt to stamp performance superiority over the Radeon HD 4870. While from a technical standpoint there are mixed views about this move, with some suggesting the performance leads aren't significant over its older version, while others finding it a good move with potential for more performance gains with tweaks and overclocking, it cannot be denied that for the new GTX 260 to fit into the market, there are some tough maths are at play.
The new GPU will certainly affect the prices of products across the segment, including those of the older GTX 260. If the GTX 260 gets a significantly lower price compared to the newer version or if this gets a significantly higher price, it could affect the sales of either products, and profits in general for manufacturers. Concerns over the new GPU causing over-stocking of the older GPU-based products loom at large, reports industry observer DigiTimes. Overstock is a condition where demand for a product is much lower or on a decline in relation to the supply. If such a situation arises where the D10U-102 sells much better than the older GTX 260 which is in good stock, manufacturers could be forced to sell the older cards at lower prices, as that is a common reaction to overstock commodities. Expect great prices caused not due to inter-brand competition, but intra-brand competition.