While I wouldn't say "kill" ATi, you're certainly correct about putting a financial squeeze on them. The bread and butter of these graphics companies is the low to mid range mainstream parts.
BUT, in order to generate interest for those parts, they release the high end parts first. That was the reasoning behind them releasing their new high end in November; the following spring they would release a slew of low to mid range parts that act off of the success of the high end part (just like the 8600).
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