A price drop from Nvidia was inevitable, but I’m not certain anyone expected one so drastic.
Tomorrow the GTX 780 drops from $649 to $499, effectively undercutting AMD’s R9 290X by $50. Factor Nvidia’s GeForce Holiday Bundle into the equation — serving up free copies of Assassin’s Creed IV, Splinter Cell Blacklist, and Batman: Arkham Origins in addition to $100 off the Shield console — and Nvidia becomes the clear price leader.
The R9 290X does marginally outperform the GTX 780, but with this new pricing my recommendation falls back to Nvidia.
Tomorrow also sees the GTX 770 fall from $499 to $329, doing battle with AMD’s $299 R9 280X. Purchasing the 770 also entitles consumers to Nvidia’s GeForce Holiday Bundle.
So why didn’t Nvidia undercut the 280X as well? I can’t answer that, but I can hazard a guess as to why they’ve positioned the GTX 780 at $499. Technically the 280X is an overclocked and rebranded Radeon HD 7970, while the 290X represents brand new GPU architecture from AMD. If I wanted to hit my competition where it hurts the most, I’d target their flagship product bristling with new silicon and technology.
Nvidia will likely explain these price drops as being influenced by their newly announced but still mysterious GTX 780 Ti, but such dramatic price drops after only 5 months is unprecedented. It’s more reasonable that AMD’s surprisingly strong R9 series — barely two weeks old — forced Nvidia into this corner.
The ironic thing here is that with Nvidia positioning the GTX 780 at $499 (which will be perceived correctly as a $150 price cut), AMD’s victory with its new flagship GPU may be short-lived — a victim of its own success — as Nvidia heads into the holidays with the better value. That is unless AMD responds in kind.