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ATI, graphics products group of Advanced Micro Devices, said late on Monday that the company has lowered recommended pricing of ATI Radeon HD 4800-series graphics cards. As a result of the price-drop, it is now possible to acquire ATI Radeon HD 4870 512MB graphics card for just half of the price that the graphics card cost just about eight months ago.

From now on, official price of the ATI Radeon HD 4850 512MB will be $129, ATI Radeon HD 4870 512MB will cost $149 and ATI Radeon HD 4870 1GB will be available for $199. New recommended pricing was not announced for ATI Radeon HD 4830, 4870 X2 as well as proprietary graphics cards now available widely, such as ATI Radeon HD 4850 1GB or ATI Radeon HD 4850 X2.

At press-time only large U.S.-based online stores, such as Newegg.com, were able to offer the aforementioned graphics cards at the new price levels. It will take several weeks before the new prices will be effective worldwide.

The world’s second largest supplier of discrete graphics processing units (GPUs) cuts pricing of its products ahead of the release of GeForce GTS 250 graphics card by Nvidia Corp. into the $129 - $149 price-range. The novelty by Nvidia is not exactly a new solution and is a re-branded GeForce 9800 GTX+, but at low price points it might capture some part of the market from AMD’s graphics business unit.

While all price-cuts are very good for the consumer, ATI must ensure that production costs of the graphics cards are low enough so that to receive profit even in cases it needs to make dramatic price slashes.

AMD is projected to release a new higher-performance graphics card rumoured to be named ATI Radeon HD 4890 (RV790) early in April. The novelty is not expected to bring spectacular performance improvements, but is likely to allow ATI to compete even more successfully in performance market segment.

Tags: ATI, AMD, Radeon, 55nm, RV770, Nvidia, Geforce, G92b

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