Well folks, we have to admit it: we have been waiting for this moment for a long time. ATi (herein referred to as AMD) has finally taken the performance crown in the GPU segment. Initial reviews are popping up here and there about the new graphics powerhouse released by nVidia’s direct competitor, and this card beats (barely, but who is keeping track?) the 8800 Ultra. Combine that with a sweeter-than-gold price tag, and AMD looks to have positioned themselves quite favorably.

X2, Only Prettier

The HD 3870 X2 is exactly what its name sounds like. Following the same principle behind the GeForce 7950 GX2, AMD has placed 2 of its RV670 chips on one board, and linked them via a CrossFire bridge. I am not here to give a review, as there are a few out there already. I am here to tell you what AMD did here that was so smart, and what they’ll need to be careful of in the near future.

Smooth Moves

Price: The card itself isn’t really what you’d call an innovation. There was no new tech involved here, as is illustrated by the usage of the RV670 chip. What we see here is a company who played the game well and worked with what they had. There has been some talk of the fact that nVidia could do the same thing and stick a pair of G92 chips on a board and call it done. To directly contest the idea that this circumstance matters a whole lot, I’ll point out that nVidia wouldn’t likely accomplish the same feat at the price that AMD has done it. This card’s price is set at $450, which really turns the tide in arguably the most important segment in the market. While the enthusiast cares not about money, they make up a very small portion of computer users, let alone gamers. The bang-for-buck folk out there will be thrilled by this price, especially when comparable cards can only be bought for $700 and above. I doubt that nVidia can pull off the same thing without shifting their entire pricing lineup.

Compatibility: I said before that the two chips are linked by an onboard CrossFire solution. For those of you with alternate chipsets that don’t support CrossFire, you’ll be delighted to know that you’ll be able to run this monster without a problem. This is really smart, because in a world of proprietary systems and interfaces, we can’t always get what we want.

Timing: AMD is still strapped for cash in many areas, but by releasing a product like this, they can obtain the upper hand, even if for a short while, and produce some much needed revenue. This will also buy them some time to work out the next big issues. They need to fix Phenom, be ready to produce the next lineup of CPUs, and they also need to get the ball rolling on their next GPU. This industry is all about momentum, and no victories are won overnight. One great product has the potential to lead to many other great products, and that is what all of us should be hoping for.

Tradition: It used to be that the words ‘enthusiast product’ were synonymous with AMD. The FX line of processors, as an example, were the champion gaming CPUs of the day, and the company garnered for itself a very valuable fan base. I did say that the enthusiast market is a small one, and that still stands, but the fact that AMD placed a component in that segment again after a long hiatus is a sign that they are getting back on track.

Don’t Get Comfortable

Even though it is doubtful that nVidia will try to drop prices to compete with the new card, photos are already out depicting the new GeForce 9800 GX2. This victory is already being viewed as short-lived, even though it is not over yet. The fact remains that nVidia has more money, and thus more muscle in this fight. If AMD doesn’t use this victory to produce more of the same, it will find itself in trouble again. They key here is follow-through. Intel made a big mistake by trying to stretch a thing like the NetBurst architecture too far in a volatile market. The same thing could happen here if AMD pushes their current graphics chips into the next generation of products. If their next chip isn’t either a highly modified RV670 or a brand new architecture, they’ll find it difficult to market it to the masses.

Playing catchup is an expensive business to be in, because you end up putting a lot of time and effort into a product lineup that may or may not be successful. However, conservative business tactics are not the route to be taken, and it appears that AMD agrees with me. They need to do something different in order to stand out and be profitable. Fusion is a great example of this, and all of the steps they are taking quite clearly point to this goal. Intel, having caught wind of the plan, has also invested heavily in the graphics department. AMD having a strong graphics department in ATi should afford them the time (again, that timing issue) to pull off the project, but they need to get a working product out there before the higher-end Nehalem chips hits the shelves. One of the most important rules of marketing is to get there first. If you are there first, it will be very tough for competitors to topple you or loosen your grasp in the sector. The message here is simple: If AMD slacks off now, they’ll have an even tougher time recovering from the Core 2 Duo fallout than they did before.

This Is Good for Everybody

For those that need extra convincing, or those that are major fans of AMD’s competition, this is an extremely good thing for you as the consumer. Imagine if you held the championship title for a long time, and you finally got knocked out by a guy with less muscle. Would you be angry enough to get off your butt and do something about it? Exactly. This blow wasn’t a huge one, but I’ll bet it stung. AMD is doing a great job at keeping things under wraps until the last second, and I think it has helped them recently. Investors may disagree, but this tactic has been a smart one for the last while because they can’t afford to be predictable. If Intel and nVidia can anticipate their every move, then we’ll really be hooped.

Well done, AMD. Just don’t stop there.