

That’s what’s keeping the lights on. If they sunk the extra billions into making their discrete cards genuinely superior to Nvidia’s (which already means taking it for granted that selling comparable products for less money makes them knockoff rather than superior), then Nvidia could stop them recouping the development costs by eating into their own margins to drop their prices. Over the last decade or two, ATi/AMD’s big gambles have mostly not paid off, whereas Nvidia’s have, so AMD can’t afford to take big risks, and the semi-custom part of the business is huge long-term orders that mean guaranteed profit.









I think you might have misjudged when LCDs became common as by the end of 2004, when Halo 2 released, LCD TVs were already a reasonable fraction of new TV sales, and in parts of the world, it was only a few months later that LCD TVs became the majority. For PC monitors, the switch came earlier, so it was clear CRTs were on the way out while the game was being developed. If they hadn’t expected a significant number of players to use an LCD and tweaked the game as much as necessary to ensure that was fine, it would have been foolish