ATI isn't going to do anything. Charlie was dead on with every single rumor he posted. I believe his trend will continue and that Nvidia is only planning on producing 10k cards total for the worldwide launch. That means if you are one of the lucky(or stupid) ones to buy this monster you will have a collectors item. The fact is it's hot, underpowered and only 5% faster in contrived benchmarks than something ATI released 6 months ago. Nvidia knows this thing is a pig and I doubt they intend to produce any more than they need to say they actually released it.
Everything that's happened over the last few months (rebranding the 8800/9800/240 as the 340 being the biggest clue) has indicated that Nvidia is going to be absent this round. Let's just be honest, they fubar'd Fermi, the next round they will be competative with ATI (if you go by previous history last time nVidia botched it badly they will wipe the floor with ATI with the refresh part) as they fix the mistakes but right now AMD/ATI has the lead and Fermi isn't going to change that. Given the limited production run ATI has no reason whatsoever to reduce prices unless they just want to hurt Nvidia more. Northern Islands will be out before the end of the year so ATI will have their refresh part very soon anyway, given the performance, price and thermal characteristics of Fermi they don't have much reason to worry for a while.
Remember, Fermi was designed as a 512 SP chip, yields are so bad that the best they can do is 480SP (with 32 bad SP's per chip) and they are right at the limit for power (~300Watts) because the chip is so poor. Rumors out of TSMC is that Fermi yields are single digit, with the size of the chip they are getting around 102chips per 300mm wafer, single digit yields means they are getting less than 10 working Fermi's for every $5000 300mm wafer. That means each fermi is costing them close to $500. Given that the cards are selling for $400 Nvidia is taking at least a $150 loss on every sale. They aren't going to sell very many or it will put them out of business. If the rumor of 10,000 cards total is true then the are going to lose $1,500,000 selling Fermi and that's if the card only costs $50 to produce. That's a lot of money, I'd be surprised personally if you can even purchase a fermi, 10,000 cards worldwide is like 3 per city. It will be a hell of a collectors item though, one of those famous semiconductor failures in the history of computing.