Cost cutting must top Nvidia’s priority list after it lowered its financial outlook for Q2, 2009 and announced $150-200 million product replacement and repair expenses. It plans to cut production costs by making the shift from 65nm to 55nm manufacturing process by the end of the current quarter, according to a Commercial Times report. All of its upcoming GPUs that are expected to be out after August including G94b, G96b and G98b will utilize 55 nm processes. Although the transition will lower production costs by 20%, Nvidia will need to do more than that if it has to wrest some momentum from its resurgent rival AMD.

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