I think AMD should raise their prices too if the performance of the 4870 is indeed higher than the gtx 295. Sure its not good for the consumer, but its much smarter business wise.

If people think a 399 is too much, they can obviously purchase the 5850 which should be in the 299 price range. At that price it still beats everything on the market and is a single card. Not only that, there are likely going to be supply constraints as 40nm not going the smoothest, so that will increase demand futher and allow the higher price of admission.

If it does make it to street at 299, I have a feeling we are going to get 4870 x2 performance(which isn't bad) or worse because of the rumored 2.1 teraflops of performance compared to the 4870x2 2.4 teraflops. Although it will rock the boat and the gtx 285 will be unsellable, it will give alot of room for the gt300 to work against.