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Tuesday, 07 September 2010 09:10

Nvidia preparing to lose millions

Written by Nick Farell
nvidia

Price war coming on cards
The rumour mill has manufactured a yarn which claims that Nvidia is preparing to write off millions and slash the costs of its graphics cards by half.

Source of the rumours is a magazine called KitGuru, which initially thought that the cuts of Nvidia's fastest selling Fermi card, the Geforce GTX 460, were going to drop by $20. Now the magazine it thinks that $20 will not be enough to stem the tide of the Rise of the Radeons and an extra $10 will be needed.

What will be interesting, however, is what AMD's reaction will be. If this is indeed true, we would dare to predict that it will drop the price of its own cards.

However there is a downside to this for Nvidia. It does not really have the sort of profits at the moment to deal with a price war and a lot of the cards were flogged to the channel at the higher price.

This cash would have to be refunded which could cost Nvidia. If there were 67,000 GTX460 cards in the global channel, then that price protection would cost Nvidia a couple of million.

Last modified on Tuesday, 07 September 2010 19:09
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