According to Mercury Research beancounters, ATI has managed to overtake Nvidia in discrete graphics sales.

Nvidia was traditionally the stronger player in the market and a year ago it had a 59 percent market share, while ATI was short of 41 percent. In Q2 ATI managed to grab 51 percent of the market, while Nvidia slipped down to just under 49 percent. As they say, what a difference a year makes.

Nvidia still has a decent chance to get back in the game with several upcoming GF10x products and the GF104. However, it is clear that ATI’s DirectX 11 lead has had a major impact on Nvidia’s business.

If we look at overall graphics sales, including IGPs and CPU-integrated graphics, Intel still reigns supreme with a 54.3 percent share. ATI is also going strong with 24.5 percent and Nvidia has to make the best out of 19.8 percent. Last year Nvidia’s overall share was 29.6 percent. Obviously, AMD and Intel will continue to dominate the IGP market.

Things are not looking up for Nvidia lately and the company has already announced that its revenue would not meet earlier projections.

More here.