Nvidia CEO Jen-Hsun Huang says: We underestimated the price performance of our competitor
Only recently Nvidia released the figures of the second financial quarter 2008. During an earnings call dealing with this matter, Jen-Hsun Huang said that the competition had been underestimated.
Nvidia underestimated the price performance of the Radeon HD 4800 series.
Even if AMD had not been named in the corresponding excerpt, it is clear that the company and the Radeon HD 4800 series in particular are meant, when Huang refers to the competitor. According to the Nvidia boss one of the reasons for the comparatively poor financial situation, is the fact that the good price performance of the latest Radeon GPU had not been expected. Although adjustments to the own pricing stabilized the situation, the overall margin had to suffer negative influences.
The new price policy causes another problem. Nvidia is changing to 55 nanometer structure at the moment, but there are still a lot of 65 nanometer cards in stock. Because of the low sales figures it will take more time to get rid of the older cards.