Originally posted by: ronnn
Originally posted by: RussianSensation
8600 and 2600 were by far the most disappointing mid-range cards in a while. Previously generally had to pay MORE % wise for LESS % performance increase for high-end over mid-range. i.e. 4200 vs. 4600, 5900xt vs. 5950U, 9800Pro vs. 9800XT, X850Pro vs. X800XT, X1950Pro vs. X1950XTX....I don't know what you are talking about but historically speaking this was one of those rare times were high end was "good bang for the buck". But high-end was never intended to be that.
Don't think anyone saw those cards as midrange.
Ya I know what you are saying but my point is that consumers tend to pay more for less when it comes to top products. We shouldn't expect a linear price/performance ratio as you move up product offerings.
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On another note...
ATI has chosen a smart strategy of targeting price sensitive consumers because we know a lot more sales take place in the mid-range. However, it's especially effective during recessionary economic conditions -- rising energy/oil/food prices, higher unemployment rates, credit/mortgage crisis. So what are people going to be doing?
1) going out less (watching movies at home, reading books, playing more videogames, etc.)
2) more price sensitive to purchases (I still want to play games, but you know what this time I just want a card sufficient enough to play my game, not necessarily at 2560x1536 4AA!)
So what card am I going to buy? As gamers we have to understand that sometimes whether or not ATI or NV have the top card might not be that important (I know it's hard to accept hehe). Let's look at the big picture.
ATI's strategy was less risky from an operational perspective. That was a very smart and a safe move considering they couldnt' afford to take the risk of trying to come up with a top of the line single unit GPU which could have failed against GTX 280, while incurring significant R&D expenses which frankly should be diverted towards K11. When you are losing $ and market share in every business segment, you have to go back to the basics (Athlon XP's success was just that - lets offer slightly slower performance for a lot lower price!) and show investors you can boost your earnings or you will not be able to secure external financing in the form of debt or equity.
ATI is no longer after the performance crown. Their goal is for everyone else who doesn't want to blow $500+ on a graphics card to buy their card. At the end of the day, the only cards that matter are mid-range and low end cards. As far as I understand historically both NV and ATI's idea was to communicate superiority of mid-range and low-end by having the most competitive high-end offerings and then consumers would know "oh GF8 is the best card", automatically assuming that 8600 series > 2600, etc. and 8400 > 3450, etc. Is this the only successful strategy? It has been for years!
But...
...As long as ATI is able to convince consumers that "Wait a second, you don't necessarily need top of the line card over competition to have great low-end and mid-range offerings," they are back in business. If I was in their marketing department discussing their turnaround plans, this is actually what I would have brought up. A lot of times all we focus on is who has the best performing card, but the management's #1 goal is to provide shareholder value. If there is an alternative strategy that will allow AMD to sell more AMD cards that doesn't involve having a top of the line card, then they will choose that path, as long as it is more cost effective and has a higher probability of success.
So to conclude, this battle is no longer who has the top of the line card. In this economic environment, it has to come to what is a better strategy - high volumes at lower profit margins OR low volumes at high profit margins? NV also bet that most consumers buy on emotional perception of what the best brand/product is (through high-end), hoping to capture those customers at low end segments. We know exactly which way each company bet.
It doesn't take a science wiz to realize what the general investor's concensus is when one looks at NV's stock as of late......Now ATI's greatest challenge is to convince consumers that having a top-of-the line card doesn't imply having superior offerings in lower price segments. "Joe Smith" will not focus on whether or not NV has a 10-15-20% faster card. He will will just hear that "NV has the fastest cards now [insert 'in general']." That imo is the greatest challenge.
My 2 cents.