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nvidia’s problem is no longer a lack of high-end products, rather it is a lack of market share. with the launch of the gtx 285, the company now competes head-on against ati in the high-end market. unfortunately, the gtx 285 is only available in 128 mb and 256 mb configurations and will cost north of £500. nvidia has gained a few percentage points of market share in the enthusiast segment, mainly due to the introduction of the x58 platform, but the company lacks a powerful range of affordable products in this area. introducing the cheaper (but less powerful) g86 platform three months later has not helped, since the company was seriously outgunned by ati.
this was the nvidia strategy. make the strongest product possible and hope that other manufacturers will follow suit. there is no doubt that many users were skeptical when it was initially announced that the gtx 285 would be priced at £579. this is the company’s biggest breakthrough since the original directx 11 gpu released in 2006. indeed, a look at the earnings conference call transcript between nvidia’s investors and analysts on the first day of the company’s third quarter financial results suggests that these investors were concerned about the lack of high-end products and were hoping that the new gtx 285 would be a success. the net result was that the stocks of nvidia’s future partners rose in value, a success for the company. the earnings call also revealed that nvidia expected to announce a high-end multi-gpu card in the second half of 2008, while the company also expected to announce a cheaper option at the same time.
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