You're making a lot of claims, but not supporting your arguments. I'm saying people won't be doing much upgrading because there isn't the demand from games. You're saying they will be doing a lot of upgrading because...they're still using cards from a few generations back? So what? Why upgrade if those cards can run nearly every game (most of which is console ports)?
http://store.steampowered.com/hwsurvey/
While not the end-all, be-all of statistical information, as a rough idea this survey shows most people are using G80 and RV770 based cards. These are more than capable graphics cards. Millions of people aren't going to upgrade just for the sake of upgrading. Some might, but not the numbers that will cause NVIDIA the kind of harm you think it will. Yes, Christmas experiences the highest sales, typically, but a few percentage points more than the rest of the year isn't saying much, nevermind the sliver of that that'll go towards DX11 hardware. $200 is cheap, but it's still $200 most people would rather pocket than waste on an unnecessary upgrade.
I think you said it quite well. "The average person doesn't upgrade their card every generation." Indeed, and that's never been more true than in recent years. Again, I think NVIDIA will survive this generation.






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