paragonOfGeek: Yea they must be making a loss, because the die area of the nvidia chip is 250% that of the ati chip. i'm not sure that the manufacturers would take that much of a hit just so nvidia can stay in fromt...but that is just speculation...


Cost of a graphics card is a function of several variables not just the GPU die size. Additional components on the card, PCB design and the GPU yield all play their parts.

A larger GPU die typically means a lower yield & lower number of dies per wafer with a subsequently higher production cost per die. Not always the case though, it is possable to have a crappy yeild due to the manufacturing process or your tape out being inherently bad. As well as performance increases and fixes that it one of the reasons why you see sometimes several die revisions of CPUs and GPUs. Each one is *very* expensive to tape out to production (millions of dollars) but if it increases your yield then it may well be worth it.

The GDDR3 which Nvidia is using is cheaper than the GDDR5 ATI is using, but the larger bus size means additional PCB layers and the associated costs of this...