It has been a long time coming – AMD GPG has finally managed to oust NVIDIA in terms of discrete GPU market share. With the dominant GeForce 8000 series in 2006/07, who would have predicted such a major turnaround?

The first signs were the HD 4000 series vs. GeForce 200 series battle. AMD’s products were clearly more efficient, with NVIDIA competing with much larger dies. Still, aggressive pricing and strong marketing meant NVIDIA retained their grip on the market share. With HD 5000 series vs. GeForce 400 series, the gap has widened very wide, with NVIDIA more than half a generation late. It should come as no surprise then, that AMD took a 51% share in Q2 2010, with NVIDIA at 49%.

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It has been a long time coming – AMD GPG has finally managed to oust NVIDIA in terms of discrete GPU market share. With the dominant GeForce 8000 series in 2006/07, who would have predicted such a major turnaround?

The first signs were the HD 4000 series vs. GeForce 200 series battle. AMD’s products were clearly more efficient, with NVIDIA competing with much larger dies. Still, aggressive pricing and strong marketing meant NVIDIA retained their grip on the market share. With HD 5000 series vs. GeForce 400 series, the gap has widened very wide, with NVIDIA more than half a generation late. It should come as no surprise then, that AMD took a 51% share in Q2 2010, with NVIDIA at 49%.

Thanks to Intel’s popular IGPs, it continued to dominate the overall graphics market. Intel with 54.3%, AMD 24.5% and NVIDIA with 19.8%.

This news, dropping of NVIDIA GPUs from the new iMac and Mac Pro lines, an 18% cut in revenues forecasts, and concerns over NVIDIA’s dropping share prices means NVIDIA has to endure a tough week.

Judging by the very aggressively priced GTX 460, it is clear NVIDIA were concerned, and definitely aim to pull back the market share in Q3. Today, the only desirable NVIDIA card is in the $200-$250 sweet spot, in the GTX 460. AMD hasn’t responded as aggressively, with the HD 5850 still selling for over $280, and the HD 5830, an inferior card to GTX 460, still selling at $200. This, with an anticipated release of the GTS 400 mainstream cards, it is possible that we will see NVIDIA pull some market share back in Q3, albeit temporarily, as AMD are preparing their new generation for Q4.

Reference: NVIDIA