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Old March 20, 2012, 07:50 PM
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Galcobar Galcobar is offline
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Originally Posted by Soultribunal View Post
They got greedy and priced too high. Instead of being aggressive and taking more market share. Lets see how much that hurts them.

-ST
AMD went with the low-price strategy when they introduced the 5000-series, but with limited availability it didn't really help it gain any permanent market share. That's the thing about the discrete graphics card market, the majority of purchasers are brand-agnostic. From a company's perspective, you might as well soak up as much profit as you can because giving the customer a good deal today does not ensure a return buyer tomorrow.

Overall profits probably look the same, but there's much less risk when releasing a low-volume, high-price part than there is with a low-price, high volume part. The risk is ameliorated in two areas: 1) if your production has issues, you don't end up with a low-price + low-volume situation, and 2) you can always drop prices to increase volume without triggering a major customer backlash (early adopters know they're taking a risk, plus while prospective customers can still change their minds).

AMD's prices aren't out of line if you compare them to the price/performance of the competing Nvidia cards (the 7750 being a glaring exception). They're just out of line with AMD's prior low-price strategy.
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