The AMD-ATI Merger

What AMD's Purchase of ATI Means to You

By Abe Mohapatra, published Aug 07, 2006
Published Content: 31  Total Views: 226,827  Favorited By: 3 CPs
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As someone who builds my own custom PCs (and also as a video game fanatic), I like to keep track of anything that might affect what parts I buy and how much they cost me.  So when AMD bought ATI on July 25th, I asked myself, “How does this affect me?”  Well, I came up with an answer.

AMD and ATI make a similar product.  Even though CPUs and graphics cards have little to do with each other in themselves, they are designed the same way.  While AMD makes CPUs, ATI makes GPUs; as two different types of processing units, they perform different tasks but are effectively constructed the same way.  Each one reads a set of instructions from its respective memory, interprets them, and returns the processed material back to whatever asked for it.  That being said, the two companies should be able to work together, creating better CPUs and video cards. And who knows, maybe they’ll cost a little less too, if manufacturing costs go down.

I’m really disappointed by the direction NVIDIA and ATI are taking these days.  The graphics card market has basically become an arms race, with each company striving to make a faster card no matter what the cost.  Sure, my new video card is faster than my old one, but it’s also more power-hungry, hotter, louder, bigger (I can’t even replace a memory module anymore without taking out the video card first), and, of course, more expensive.  (Let me clarify that last one.  Both cards fall in the same percentile performance-wise.  But my new one, an NVIDIA GeForce 7800GT, cost me $135 more than my 6600GT, after the same amount of time following their release.)

Takeaways
  • AMD will bring positive things to ATI's products.
  • Making ATI a better company will force NVIDIA to become a better company as well.
Did You Know?
Five years ago, $300 would get you any video card you wanted. Today, you have to find a bargain to get NVIDIA's GeForce 7950GX2 for under $600.
Comments
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you're clueless. nvidia's bread and butter isn't in selling video cards. why don't you research the company more and tell us what it is/.

Posted on 12/08/2007 at 1:12:00 AM

 
Sorry I didn't stress that enough; yes, CPUs and GPUs are nowhere near the same thing. I just think that, since they take the same role as the primary processing engine in their respective realms, they might develop the same type of competition. Your first point could be true, but I doubt it, since if Intel had Core 2 ready it would have come out a year ago, when AMD was taking over more of Intel's customer base. Add to that the fact that competition has driven profits down to almost zero on Pentium 4 and D, and Celerons are always below manufacturing costs, so it's unlikely they would have held on to Core 2 if they had it early.

Posted on 08/08/2006 at 10:08:00 AM

 
A well written article with some good points. A couple of details that may have been overlooked however: Intel has been a massive near-monopoly for several years and so probably have a lot of developments like core2 that they just don't release on the market if they think they can squeeze more profit out of the last generation of tech first. As a result increased competition will have a much swifter effect on the CPU market than one like the Graphics Card market where market share is much more 50-50 and hence the tech is bleeding edge already (no-one has anything locked in the safe). Further the difference between GPUs and CPUs is understated in the article. One is a specific purpose processor and the other a general purpose processor. I won't get into the details here, but sufficient to say the difference is great enough that for raw processing power a brand new 500Mhz GPU would wipe the floor with an overclocked 4GHz Pentium D805 (mentioned in your article - a great chip

Posted on 08/08/2006 at 6:08:00 AM

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