Quote Originally Posted by bill_d View Post
so you want the to price their cards at a higher price that makes it more likely that nv can put them in that situation
No. I am saying that ATI needs to protect themselves in case Nvidia is able to beat their price / performance ratio. It is better for them as a company to give themselves more room to maneuver price-wise when Nvidia comes out with their new cards.

Let's put it this way. Yes, it simplifies the way the supply chain works and assumes profit but it's for clarity's sake:

ATI releases a $299 card and they make $15/unit.

Nvidia then releases their next gen card and prices one of the SKUs at $299. That SKU is able to beat the ATI card in the price / performance category.

ATI can now cut the price of their card by at most $15 before they start loosing money on every card sold.


Now, supplement that $299 with say $349 and suddenly ATI has much more wiggle room when it comes to matching Nvidia's next move.