AMD plans GPU price cuts -

The beleaguered graphics market might get a kick out of a price war between AMD and Nvidia.

According to Anandtech, AMD will announce another round of price cuts across the board later this week.

The idea is to make AMD's entire line a little bit more enticing against those for Nvidia.

A high-end 7970 will be chopped by $120 from the original launch price. When it hit the shops for the first time it was $549 and now it is just $429.

The 7950 will see a $110 price cut and the upper mid-range 7870 will retail at a $100 discount.

AMD seems to be wanting to cut its prices even at the bottom end of the market. The Radeon 7770 has fallen from $159 to $119 and the 7750 from $109 to $99.

At the moment AMD is having problems dealing with Nvidia's GTX 660Ti which is a pretty good card for the price. Nvidia also has a larger number of powerful GPUs. AMD's logic is that if its cards are cheap enough, then people will buy them.

It might be right, but the graphics chip market is in the doledrums at the moment with many of the chipmakers' partners suffering the pinch. For some reason when Europe is in a recession, and people are looking for things in rubbish bins, people think that a graphics chip is something that they can skip for now.