Buoyed by the early promise of its ATI Radeon HD 4850 card, AMD expects its discrete graphics card market share to reach 40% in Q3, 2008 up from 30% at the beginning of this year. The performance-oriented HD 4850 is an absolute steal for $199 and most industry watchers expect it to tear into the market held by $200-300 card.

The launch of the HD 4850 left Nvidia with no choice but to drop the price of its GeForce 9800 GTX+ from $229 to $199. But when AMD decides to cut Radeon HD 4850’ price – a long way off – sales will get a huge boost.

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