hold on guys
I just had the best idea
>AMD makes a new GPU that beats 980Ti (with HBM2 or whatever)
>release it for $199
>everybody buys it
>noone wants nvidia anymore
>nvidia can't compete with so low prices
>AMD gets tons of money because everyone and their dog got this new GPU
>AMD stocks skyrocket
I just saved AMD
Undercutting that much is illegal.
You can't sell those large dies for that little money, that's a major loss and AMD doesn't have the spare cash to live that out for a year.
tl;dr you're not smarter than AMD.
>>AMD makes a new GPU that beats 980Ti
>no sane company would possibly try and sell that for $199
>everybody still buys nvidia because intel, microsoft and almost every modern aaa title shills the fuck out of it to 12 y/os
>AMD does all that shit
>gets a little trickle of extra sales from the minority gamertard market while OEMs, enterprise customers, and other big spenders that actually matter stick with NVIDIA because of CUDA and existing contracts
>Nvidia buys it all and resells it for $300
>AMD goes bankrupt
>AMD sells every single one of their manufactured cards
The thing is products are usually priced so that they earn "profit". Without profit there's normally not reason to sell something. Notice the "normally" part. If you undercut your competition so much that it actually costs you money as well but you're significantly larger than your competition or have other sectors that can make up for it then you'll still have the advantage in the long run. But this also opens you up to anti-trust lawsuits because what you're doing is literally exactly what anti-trust laws were created to prevent.
Dumping is often an illegal act due to its anticompetitive nature.
For example, gasoline, many states forbid it being sold below a certain margin.
>That one week where the gas station owner was feuding with the gas station across the street and dropped his price by 30 cents per gallon.
1.60 for gas when the national average was like 2.30
The HBM2 and fabs for a high end card cost more than $200 shitlord.
Huge Polaris - Fury Rage Maxx (AMD's real answer to the Titan)
Big Polaris - FuryX 2 (Electric Boogaloo)
Big Ploaris Cut - Fury 2
Big Polaris TDP - Nano 2
Little Polaris - 490X
Little Polaris cut - 490
Fiji TDP (Nano) - 480
Tonga XT GDDR5X (380X 4GB) - 470X
Tonga GDDR5X (380) - 470
If you think this would be a poor line up, you are a moron.
If you're concerned about rebrands in the budget area, you are a true poorfag
If you have doubts about buying a Nano rebrand in 2016, you are a moron.
'Undercutting' would have the reverse effect actually. AMD would show their costs to a court, then Nvidia would be investigated for price fixing.
And then the industry would finally return to sanity for 4 more years.
I don't think AMD have ever mentioned using GDDR5X, they said they'll use HBM2 and GDDR5 in the price brackets where HBM2 is too expensive (and the GPU isn't fast enough to need it).