NVIDIA HAS BEEN propping up volume by selling below cost for a bit now, and the latest price drop of the GTX260 is sure to bring smiles to the faces of users. The problem is that add-in-board (AIB) partners can't make money on them.

Losing money on each card is not a good business strategy, and making up for it in volume does not make things better. Mercedes could sell S-Class cars for $10, and volume would skyrocket, but that wouldn't be a very sound business strategy. For some reason, Nvidia not only thinks this is a sound strategy, it is implementing it.



The top two retail vendors had enough stock between them that you could count to it on both hands unless you were missing a finger. Tiger Direct didn't tell us quantities, but only had two brands in stock, and you could not buy multiple units. Basically, they are done for. Don't expect any more unless Nvidia feels its losses in Q1 are not deep enough.

Remember, when we said they were limited and gone once they were gone, some spinners denied it vehemently. Nvidia will probably trickle out a few more to 'prove' this wrong, but the 295 is dead now, two month life span.

I guess you could call their honesty into question once again over this, but isn't that flogging a dead horse?

Nvidia GTX260s now losing money - The Inquirer



UPDATE: Nvidia owes millions of $ in GTX295 backlog Theo’s Bright Side Of IT

lol @ those genuises who were saying GTX 295 is worth the 100$ difference over HD4870x2, wonder why then they are suffering huge loss now tho??, Nvidia has been on a loss streak ever since the release of 4850, hope they do some sensible pricing atleast now with the gtx260....

The problem is the same one we told you about almost a year ago, the GT200 die is too damn big. Even with a shrink, it is still too damn big, almost twice the size of its closest rival, the ATI R770/4870

LOL!



in the end..its all good for the users, the prices keep on going down !!