A Little Bit On Video

We spoke a bit about video adapters on the show, Sunday. Normally, I don't follow video developments too closely, for the simple reason they are too complex and confusing. It's just too easy to mislead you all about video.

But Sunday we alluded to how quickly high-end video components move down the market to more affordable prices and new, low or middle priced parts. Remember when 8x AGP was better than $500 a pop and only the most fanatic gamers were willing to pay for it? Well, that's changed, as illustrated by the Digitimes article at the above link. It seems NVidia is gearing up for volume production of 8x AGP parts now, increasing their capacity by over 2 million parts per month. Price cuts on some of these parts have been recently announced and more will surely come in the next few months. Bloated inventories and falling DRAM prices will accellerate this trend.

Just thought you might like to look at how prices are driven down as time goes on and R&D costs are amortized.

Jack