Originally Posted by pauldovi
Yeah because you have seen their internal costs.
I think that GTX260 > 4870 because of the better warranty and less heat output. But you won't see me buying either.
You don't need to see exact figures/costs.
Obviously they can go lower still, but no way will they be able to match the price of the 4870. Even if they weren't losing money at that price, the demand would be too high for them to keep up with, so they'd either have to allow a shortage or raise prices back up. And if there's a shortage it means they could be profiting a lot more with higher prices, and no investor would go for it. If the investors pull their money out (which is happening, as you can see by stock prices), they lose money.
Also, forfeiting profits (in this case by creating a shortage) is also a loss of money - the amount of money you COULD have made is considered an expenditure. And since they would get nothing in return, it is therefore also considered a loss.
So like I said, until they can increase their yields to keep up with a higher demand (which will happen when they reduce the size of the manufacturing process) they will lose money if they go much lower.Edited by Manyak - 7/4/08 at 12:10am