Nvidia GTX260s now losing money - The InquirerNVIDIA 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?
UPDATE: Nvidia owes millions of $ in GTX295 backlog Theo’s Bright Side Of IT