Short bio: Computer Scientist, FOSS supporter (read more)
Tux Machines (TM)-specific
An insider close to one of ATI's board partners disclosed that ATI is expected to cut prices on its X850XT graphics adapter to compete against NVIDIA's recently announced 7800GT in order to stay competitive in the market. Whether ATI will cut prices for the entire X850 product line is currently unclear.
Even though ATI is doing everything it can to stay competitive in the market, unfortunately it's not nearly enough to give it an edge in the community. As ATI continues to delay the R520 launch, it'll have to jump over more hurdles in order to be successful. Right when the 7800GTX debuted, ATI just had to manage a similar launch with competitive performance. Today, however, not only does it have to have the availability, product launch and performance issues sorted out, but it'll also have to match the price point with enough yields with the 7800GT in mind. Logically, we don't believe ATI would introduce both the midrange and high-end products at the same time, as they would take away from the limited high-end sales. From that standpoint, it appears that ATI would always remain a step behind against NVIDIA, which would certainly give NVIDIA an edge.