The ATI Radeon 5XXX Thread

[saaya]

Seriously saaya, to make your price analysis worthy you ought present some type of research to back up assumptions on equilibrium price-point of market demand and production output...

Yeah I know it sound difficult, and perhaps even AMD didn't do any research, perhaps they just look upon performance of their new parts, and performance of NV offering and decided to put some price-tag (not saying that what Theo And Charley are claiming is true prices - hell I'm pretty sure there's no way they could have official pricing leaked)

you can spend an infinite amount of time and money on researching the perfect price points in a given market... the easiest and safest way is still this:

start at the top, then lower your prices and monitor demand, if it stops picking up, keep the price the same or even increase it a bit again (read: stop giving special discounts to certain customers) then repeat this as time goes by since the market continues to evolve and mfc prices drop...

its really very similar to fishing

so yeah, atis approach makes sense, if thats what they are doing... i think they are starting at a too high price point though... and if you do that, you risk losing a lot of peoples attention, and, you risk seriously pssing off customers who bite early and find the same piece of hw for half the price a few weeks later... thats what nvidia ran into with their 8800 and 280 series...

if you start too high and then drop prices more and more, people become more reserved and sit back and wait to see how low your going to go... and the price point where demand then picks up is lower than it would have been if you wouldnt have started too high to begin with...

yeah this really is so much like fishing... its pretty obvious why so many business men enjoy fishing hehe

so, if you start too high you either have to drop prices too fast and that means people wait and you end up dropping the price a lot, or, you play the waiting game and drop the prices steadily, but then your risking that somebody else will throw in their worm at the right spot during the right time and steals your attention