The purpose of a business is to make money. So if one business makes more than the other, the one making more money is winning.
If GTX 260 has to go down to $350 or less in price to compete with the 4870, nVidia will be making a lot less money than AMD will be, even if they are pricing it at $249 or $279.
Price/Performance, that remains to be seen. I think HD 4870 will win that war because I don't think GTX 260 will drop below $399, at least not any time soon. And it definitely won't go below $350. With the 4870 AMD has more room to manuever; they can price at $249 and still make money.





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