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[Hexus] nVidia guarentees it will win price/performance battle

post #1 of 69
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Quote:
The president of NVIDIA board partner BFG spoke to HEXUS.channel to give his take on the launch of AMD/ATI’s Radeon HD 4800 series, which promises to put intense pressure on NVIDIA in the mid-range market.

“It’s always good to have competition and it’s been a long time coming from AMD,” said Herkelman. “However, if I was a consumer I would pause, wait for the reviews and see what NVIDIA does in response.”


Indeed, NVIDIA is in a potentially tricky situation. If it cuts costs to negate the anticipated price/performance advantage of the HD 4850 and 4870 then it will have to either compensate board partners and retailers or risk damaging its relationship with them. If it doesn’t react it might lose that dominance of the graphics market it’s enjoyed for the past couple of years.

“NVIDIA has been number one for quite a while, and still is. But now it has to consider its response,” said Herkelman. “NVIDIA has made a lot of money and it will guarantee it wins the price/performance battle.”

Herkelman was quick to point out that this was just a statement of his belief in NVIDIA and not derived from anything NVIDIA has told him. However it does at least imply he anticipates price cuts, but he insisted it’s not as simple as that. “It’s definitely complicated and that’s why it’s taking NVIDIA a while to respond. AMD has gone aggressive on price in order to gain back consumer confidence but its R&D spend doesn’t come close to NVIDIA’s.”

Nobody questions that, in the long term, NVIDIA’s R&D spend will yield products that further raise the bar, price/performance wise, but for the time being, with the exception of the sudden introduction of the 9800 GTX+, it is restricted to price-cutting as its short term response.

The issue for the channel is how those price cuts will manifest themselves. Board partners, distributors and retailers will all have stock bought at certain price points that they will now have to sell for less, such as the 9800 GTX. Unless NVIDIA compensates them, they will make a loss on these products.

Herkelman stressed that there is unlikely to be a blanket policy on this. “Each partner is in a unique position – it’s not clear cut how to react to price adjustments,” he said. Maybe so, but one thing’s for sure: any partners who aren’t happy with NVIDIA’s handling of the situation now have a good alternative GPU option.
Source

This only drives competition pricing. Good for the end consumer methinks.
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post #2 of 69
I really don't think I can take it seriously after this:

Quote:
NVIDIA has been number one for quite a while, and still is
post #3 of 69
Quote:
Originally Posted by darkcloud89 View Post
I really don't think I can take it seriously after this:


Agreed. I dont know why they dont man up and admit they lost this time. AMD/ATI worked hard and deserve a win. Why be such sore loosers about it.
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post #4 of 69
hahaha, at the end of the day my money will go to ATI. Have fun deluding yourselves.
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post #5 of 69
Quote:
Originally Posted by ChrisB17 View Post
Agreed. I dont know why they dont man up and admit they lost this time. AMD/ATI worked hard and deserve a win. Why be such sore loosers about it.
Business is never about fair or deserving, and Nvidia or any company would not admit it has lost anything.

And yes, Nvidia has been on top, they are the larger maker of GPU's.

It is indeed a very interesting position for board partners, I wonder if more of them will take Asus's path and make GPU's for ATI and Nvidia.
    
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post #6 of 69
you can't guarantee anything at this stage, not until final drivers are released and the next line of hardware is already rolling out
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post #7 of 69
you can never know
    
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post #8 of 69
I'd like to see what they can come up with
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post #9 of 69
Quote:
Originally Posted by ChrisB17 View Post
Agreed. I dont know why they dont man up and admit they lost this time. AMD/ATI worked hard and deserve a win. Why be such sore loosers about it.
Yea cause NVidia is going to come out and be like "Yup our cards didnt to to well this generation, please go ahead and buy AMD/ATI." No its buisness, and as a buisness you need to produce money, and to do that you must hype your product and sell your product, not admit that the other company currently is on top.

I love how you have say ATI has tried so hard and deserve it, well it wasnt like ATI was advertising that there cards arent as good as the other guys, so dont buy ours.
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post #10 of 69
Actions speak louder than words.
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