AMD Takes Axe To Radeon Prices; Announces Game Bundle

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News Posted: Mon, Aug 20 2012 10:33 PM
AMD Radeon HD 7970 GHz Edition ReviewWe've been wondering how AMD would respond to Nvidia's new GTX 660 Ti and Team Red has given us our answer. AMD is slashing prices across the entire Radeon HD 7000 family. The HD 7950 should start showing up as low as $319 by the end of the week, compared to current prices in the $349-$369 range. The 7870 GHz edition is headed southwards as well, down to $249 from $299-$319 at present. The 7850, AMD's current $239-$259 card, is taking a price cut of nearly 20%, down to $209 for the 2GB flavor and $189 for the 1GB card.



That's not all. The GPU developer is also launching a marketing campaign around the recently released Sleeping Dogs, the open-world, unofficial True Crime sequel that Square-Enix picked up last year after Activision canceled it at the last minute. The game launched last week and early reviews have been favorable. AMD is obviously hoping to pick up a little traction after Nvidia announced that the 660 Ti would ship with copies of Borderlands 2, but both games look worthy of your gaming dollar -- at least so far. 

These price cuts, the recent BIOS update to the 7950, and the GHz Edition launches a few months ago are all designed to keep AMD competitive with Nvidia. They're great moves for consumers, but they also show how AMD was outmaneuvered this time around. GCN is a great architecture -- no doubt about it -- but Kepler's efficiency and smaller die are very tough to beat. With the 660 Ti targeting the $299 price point, AMD's decision to cut card prices one grade lower is a preemptive move aimed at encouraging upgrades from more mainstream segments. If you own a card from the HD 5770 family, the new 7850 is a great option at $209. The new prices for the 7870, meanwhile, put some distance between it and a competitor card that offers higher performance.

Our gut feeling is that these price cuts don't just put AMD in a competitive position, they tilt the price/performance field back towards Radeon at the sub-$249 mark. Whether or not that'll translate into increased sales in Q3/Q4 is an open question. Nvidia hasn't launched any cards at the highly competitive $199 price point yet -- if it fires back right before the Christmas shopping season, we could see another round of price cuts from Sunnyvale. With prices like this, there's no reason to wait; midrange GPU performance is going for firesale prices.
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fat78 replied on Mon, Aug 20 2012 10:47 PM

Sweet! The price of the 7850 has gotten me excited. Atm i don't need to upgrade my gpu, but i think i know some one who may want to upgrade their computer. I tend to like amd's 850 models. I have used their 3850, 4850, and 6850 and they all gave  good price to performance.

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GKvarta replied on Tue, Aug 21 2012 3:22 AM

You forgot to mention that AMD launched his 7xxx generation a half year ago, so I don't see anything bad to AMD to cut prices :)

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CDeeter replied on Tue, Aug 21 2012 9:02 AM

Yeah they made their money on this generation, time to make sure and clear inventory for the launch of Gen 8.

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rapid1 replied on Tue, Aug 21 2012 11:40 AM

I like that 7850 price line I have not had any need really to upgrade throughout the 6 series and am still running my 5 series top of the line for now. This at least when we get to BF might be a grab for sure.

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Erakith replied on Tue, Aug 21 2012 12:51 PM

Whilst not a fanboy, I typically tend to buy nVidia. Not for any particular reason, I think once I compare the two lines I just see things that perk my attention more when it comes to team green.

That said, I am liking that AMD are cutting prices; the problem is is that I don't think AMD were expecting to have to make so many price cuts at so frequent intervals. People who bought these cards earlier, being early adopters to AMDs Tahiti architecture, are going to be irritated.

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Joel H replied on Tue, Aug 21 2012 4:09 PM

GKvarta,

The problem isn't the age of the HD 7000 family, it's the fact that AMD is having to cut costs in the first place. Remember, AMD's four year net profit margin on GPUs is just 7%. That's much lower than Nvidia, and it includes the company's best years, when the HD 4000 and HD 5000 were doing extremely well.

Tahiti is a great chip. The HD 7000 is a good series. But it's not quite as strong as Kepler, and that puts AMD in a tough spot.

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AKnudson replied on Tue, Aug 21 2012 7:58 PM

The Kepler based graphics cards, especially the professional grade variety are much better graphics cards both in terms of price and quality. More bang for your buck and all that.

What can Radeon do to combat That?

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realneil replied on Tue, Aug 21 2012 8:46 PM

Price cuts are always good news,.....

Don't part with your illusions. When they are gone you may still exist, but you have ceased to live.

(Mark Twain)

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Kidbest100 replied on Wed, Aug 22 2012 12:54 AM

Price cuts are always nice to see.

However, I would like to see BIGGER price cuts :D

My buddy wants to get a better GPU, and He's waiting for a decent enough price drop so he can get a good card without breakin the bank.

Hope it works out for him.

Me on the other hand, I dont got nothin to spend in the first place :P

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unionsac replied on Wed, Aug 22 2012 6:24 AM

That said, I am liking that AMD are cutting prices; the problem is is that I don't think AMD were expecting to have to make so many price cuts at so frequent intervals. People who bought these cards earlier, being early adopters to AMDs Tahiti architecture, are going to be irritated.

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