With AMD preparing to launch its RDNA 4 graphics cards early next year, it’s already having to confront two major problems: fierce competition from Nvidia and internal pricing conflicts. With no official specs yet announced, AMD has hinted at a shift in strategy to focus on midrange GPUs rather than battling Nvidia for flagship dominance.
Rumors place the RX 9070 XT at the top of AMD’s next-generation lineup, which should grant performance comparable to Nvidia’s RTX 4070 Ti or AMD’s RX 7900 GRE. This is a strategic approach to capture the gaming market’s “sweet spot,” and the price will probably come in the range of $500-$700. But this puts AMD in a precarious situation since Nvidia dominates the flagship market, while Intel aggressively targets budget-conscious gamers.
One challenge is context: AMD’s GPUs are nearly always judged relative to Nvidia’s, given the latter company’s market dominance. An example is the AMD RX 7800 XT getting kudos for offering a performance level close to the Nvidia RTX 4070 for a much-reduced price. Without a competitive flagship GPU, AMD will only continue to be overshadowed by Nvidia’s rumored RTX 5090, which may deliver up to 70% more performance compared to the RTX 4090.
This midrange focus also introduces some intrabrand competition within AMD’s lineup. Take the hypothetical RX 9070 XT: launching at $650, with a bit less performance than the RX 7900 XT but a bit more than the RX 7800 XT, it might find itself fighting for market share against discounted last-gen GPUs like the RX 7900 XT, already available for similar money. Competitive pricing without undercutting your older models is an uncomfortable tightrope to walk and one that could hamper next-generation success.
With Nvidia’s next-gen GPUs also expected to arrive around CES 2025, the midrange launch of AMD may be delayed in its adoption as gamers wait for Nvidia’s full lineup. In addition, Nvidia can adjust pricing and offer competitive refreshes-which it did with the RTX 4070 Ti.
While AMD’s strategy has potential, its success depends on precise pricing and performance balance. As the GPU market evolves, AMD must overcome these hurdles to solidify its position against Nvidia and Intel.
