AMD Comfortable with Current GPU Pricing, No Cuts in Sight

A little later this week, NVIDIA will release two of its front-line GPUs that are compliant with the latest industry standards, notably Microsoft DirectX 11. This brings competition to AMD's high-end Radeon HD 5800 series and Radeon HD 5970 graphics cards, or does it? Competition often tends to have a pro-consumer effect out of price-wars. Sources indicate that AMD is not inclined to cut prices of its products after NVIDIA's launch of GeForce GTX 400 series. A few factors we think could prevent a price-war:

• AMD could have a fair idea about how GeForce GTX 400 series GPUs compete with its GPUs, and given that their estimated performance levels and estimated target prices (estimated US $499 for GTX 480 and $349 for GTX 470), the performance/price equation for AMD's Radeon HD 5800 series GPUs iron out, with HD 5870 at around $400, HD 5850 at around $325, and HD 5830 at $240, barring HD 5970, which is being priced at a premium for its premium performance levels.
• Although NVIDIA and its partners officially launch their GeForce GTX 400 series products on the 26th of March, market availability, backed by sizable inventories could just take some time, allowing AMD to maintain its prices.
• AMD is introducing newer variants of its HD 5800 series GPUs, namely HD 5870 Eyefinity6 2GB, and allowing AIB partners to come up with 2 GB models of Radeon HD 5800 series cards.