I think AMD will come out ok. They are still making a ton of profit off the 7970 at $350 and they released the card quite some time ago now. I think it was a very successful product for them; one of their best designs of the past 5 years for sure.
A lot of people will be all over the 7970 at $350. AMD will do quite well on them for sure. They could probably sell them for $100 and still turn a profit; these computer parts are not expensive to make. It's the R&D that costs money.
This game is not about doing "OK" ... it is about making money. My point stands: AMD is too slow to respond.
Now you say that a lot of people will be all over the 7970 at $350
-- true. That is *assuming* that Nvidia does absolutely nothing.
The situation has reversed overnight. Now the HD 79x0 is good bang for buck and the GTX 6x0s appear overpriced.
--- Doing nothing will allow AMD to gain market and mind-share. Nvidia can (1) bring out the overclocked models of the GTX 6x0s in an attempt to hold their own pricing high; and/or (2) drop pricing on their current models to match the AMD price drop.
i say we see a response from Nvidia within 2 weeks; less if they are on top of their game