Fact is VTX have a build cost, they have sold below what there build cost is substancially as are other ATI AIB Partners.
I know this for a fact, the only way VTX or any other board partner can prevent loosing money is to go back to AMD and say we need to shift our 5870 inventry which we own at this price, but we need to sell it at this price. Then hopefully AMD will financially sort them out so they can move the stock at a lower cost. If AMD refuse then the board partner takes a hit and looses money.
I have close personal friends at manufacturers who know all the costing and know for a fact at these new prices with funding from AMD the board partners are now loosing money.
Also to compete with competitors following our pricing I've lowered our 5870 price and anyone who placed an order for one, call our sales to refund the difference.
Its worth pointing out that, guys who want to SELL YOU THINGS, have a habbit of saying things along the lines of "I really shouldn't, its really killing us, and we'll make a HUUUUGE loss, but I'll give these to you at £150".
That doesn't actually mean it does, likewise, Nvidia/AMD pass rebates through the channel to clear stock, this is standard procedure and has been done for as long as gpu's have been about, VTX aren't losing money, just making less than they hoped and potentially set targets for.
The fact is 5850 vs 5870, production costs, pcb/memory/power, are within $4-5 of each other, when AMD pass a rebate through the channel to clear stock theres not a chance in hell they are making a loss. AMD/Nvidia write off profits in these situations and even take a loss, partners rarely if ever do(more so lately with Nvidia as they've had no room for manouvre).
If a 5850 isn't making a loss, a 5870 selling for more sure as heck isn't. For how much room AMD/Nvidia have to work with, a 5870 is a 336mm2 size core, a 470gtx is a 529mm2 size core, with massively worse yields on top meaning its going to be looking at minimum twice the cost per core. Theres healthy profit at £200 for a 5850, then theres healthy profit at the same price for a 5870, everything else is marketing guff.
Thats rubbish!
I have 6950 and 6970 stock shipping and I've paid for it.
I can tell you now the pricing will be:-
6950 @ £270 - £300 Inc. VAT
6970 @ £360 - £400 inc. VAT
I have lots en-route.
Now the 5870's are sub £200, thats £100 cheaper than a 6950 and same price as a 6870.
People will and are buying 5870's now they are sub £200 because at sub £200 there is no faster card.
5870 won't be going £150 or lower, what would be the point, as then 6850/6870 would not sell.
Plus if you think 69xx cards are gonna be £200 then think again and look at my pricing above, again use common sense, why would 6950 be same price as a 6870?
6950 competes with GTX 570/480 and is priced similar.
6970 competes with GTX 580 and is priced similar.
Considering you know the price you paid it seems a tad odd that , on identical reference cards with marginal differences at first, same pcb/heatsink/everything but sticker that you wouldn't know the RRP and what price you could sell at, so giving a range says to me "we haven't decided what we can get away with yet", that doesn't reflect the RRP or AMD's pricing wishes.
£250/350 are probably the aimed price points, what we really see in the UK where we get gouged worse than anyone, who knows, probably higher.
I'd also suggest AMD would be REALLY unhappy you were disclosing prices on a public forum.
As for if the 5870 would go for less than £150, of course it can, all 5870's sold for £150 is better than a few thousand on shelves forever with no one wanting them at all. What about 470gtx's at £165 to clear stocks, cheaper than several 460gtx models, short term pricing doesn't matter in the slightest, when the cards are gone it won't have a particularly long term effect on 6870 sales/pricing, they'll just sell a few less 68xx's now and a few more when the 58xx's are out of stock everywhere.
Same way 460gtx sales and 580gtx sales are being hurt by 470/480gtx pricing, its short term, Nvidia don't care, neither does anyone else except the guys who get a very good deal with EOL pricing.