The fact that the 960 sold as well it did despite never being the best value in that segment shows how important performance leading cards help brand image, though. 960 rode the coattails of the 970 praise, despite never really being that great of a card at all(I certainly never recommended it to anyone).
Even if AMD are competitive in the £200 range, not having proper upper midrange/higher end cards could still hurt AMD in terms of what people choose.
And my point about the 1070 is that great pricing there(like they did with the 970) is that it puts AMD in an awkward situation. They would need to be very aggressive with Polaris 10 pricing in order to stop the price/performance gap between it and the 1070 being too big. For example, if the max Polaris 10 is 390X-performance at £250, but the 1070 is 980Ti-level at £300 - which do you think looks more attractive ultimately? In that situation, I would recommend somebody fork out the extra £50 every time.
True,but what if Polaris 10 is £200 with R9 390X level performance,and the GTX1070 is £300 with GTX980TI level performance?? It could be that Nvidia goes super agressive and prices it at £250,but that would be a 35% to 40% larger chip still at that price. The GTX660TI which fought with the HD7950 had a 20% smaller chip and half the RAM modules,and the GTX970 which fought the R9 290 had a 10% smaller chip and half the RAM modules.
Even with Fermi,when Nvidia did use bigger chips,they had a special agreement with TSMC to pay for only functional dies,which cut costs.
Remember,even sites like TPU put the R9 390X at roughly GTX980 level performance.
People keep saying high end image is important - ATI being VFM with the HD3000 and HD4000 series still meant they kept reasonable marketshare. If you don't believe me,look at the chart over the last decade of shipped cards.
The HD3870 was beaten by the 8800GT,8800GTS 512MB,8800GTX and 8800 Ultra. The GTX280 was at least between 15% than a HD4870 which arrived weeks later and on top of this in games like Crysis the GTX280 was 30% faster! ATI was nowhere near the 20% of shipped marketshare AMD has now.
The main issue is that due to the botched R9 290 launch,AMD cards have been considered hot and power hungry which has put people off. The same happened with Fermi to a lesser degree.
This is why I think how the GTX1060/GTX1060TI performs is more important. It will have a 192 bit memory controller,which will cut costs against a Polaris 10.
Now,if that could hit better than GTX980 level performance(does not need to be GTX980TI level) against a Polaris 10,that would be a big problem for AMD.
You saw this with the GTX660TI which slightly edged out the HD7950.