This week, nVidia launched a large number of new 8500 and 8600 graphics boards (the low cost complements to the 8800 series that is currently at the high-end of the market). nVidia also presented its 8800 Ultra (overclocked 8800). Thus, nVidia is now fully covering the market (from low-cost to high-performance) with DirectX 10 compatible solutions (capable to manage all graphics from all the versions of Windows Vista and to support the new games that should require this platform during 2007).
Meanwhile, AMD (previously ATI) is still announcing its HD 2600 series (also known under the R600 architecture code name) that should hit nVidia with high-end features including full support for HD-TV applications.
I find it striking to see that AMD is currently under fire from all sides. The CPU division is facing an Intel betting on its technical advantage of the time and leading AMD into a bloody price war that strangle margins. The graphics division (ex-ATI) met difficulties when developping the R600/HD 2600 and that delayed significantly the products that are no longer expected before May 2007.
I have to admit that -in this context- the financial results of AMD announced this week (profits loss of 611 millions dollars for the first quarter) cannot be surprising. Parallely, Intel finances are flying high and its market share is continuously improving again. The billion-dollar-question is how AMD will be able to correct this doom trajectory. We expect this obvious impatience the arrival of the new processor architectures (double and quadruple core, specifically) able to really fight against the Core 2 Duo from Intel and the first boards based on the R600 chipset to see them back in the game again (Journalists accredited by AMD will be in Tunisia next week to discover all the details, but they are not allowed to speak until AMD lifts the NDA).
Before that, it is probably important to be patient with AMD and to remember that it is only by giving them our purchases that we can support a company that nearly broke the monopoly of Intel on the processors (with all the Customer advantages of free competition).
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April 20th, 2007 at 16:53
In this context, the real life test of Legit Reviews will appear interesting. They opposed two CPUs priced around $185: Intel Core 2 Duo 6300 and AMD Athlon 64 X2 5600+ and found that the AMD CPU could beat the Intel processor quite often in real games.
Price cuts are hurting AMD, but they still are performing correctly in the middle- and low-end of the CPU market.