Table of ContentsTable of ContentsA picture of whats comingAlways battling contextMoving backwardWere about to enter a new era of GPUs, with Nvidia, AMD, and Intel duking it out for slots among the best graphics cards. But this time around, things are different. Team Red, which has traditionally served as a downward force on prices against much more popular Nvidia GPUs, is caught in the middle of a graphics card market thats headed in two vastly different directions.Although AMD has yet to formally unveil its RDNA 4 graphics cards, the company has confirmed that its coming early next year. The details about AMDs next-gen GPUs are still up in the air, but you dont need any official specs or benchmarks to see the precarious position that AMD is in. The companys next-gen graphics cards already have two big problems Nvidia, which likely will pursue flagship dominance, and AMD itself.Recommended VideosJacob Roach / Digital TrendsAMD hasnt shared official details about its next-gen graphics cards yet, but the company has painted a clear picture about where the card will end up. AMD has said it doesnt want to play king of the hill with Nvidia, all but confirming months of speculation that AMD will skip the battle for flagship dominance in order to focus on midrange GPUs.Get your weekly teardown of the tech behind PC gaming The latest rumors suggest that the card AMD will lead this initiative with is the RX 9070 XT. Thats not a typo. Rumor has it that AMD is changing its naming convention once again for RDNA 4 graphics cards. According to leaked benchmarks, this card should perform around the level of an RTX 4070 Ti or RX 7900 GRE. That falls in-line with AMDs strategy this generation. If the leaked benchmarks are accurate, AMD is offering performance of a graphics card in the $600 to $700 price range from the current generation, and I suspect for a lower price.RelatedOther rumors claim itll be slightly faster somewhere near the performance of an RTX 4080. Where exactly it falls isnt important right now, however. Whats important is that all signs points to AMD falling below the threshold of what would be considered a next-gen flagship GPU. Thats doubly true when you consider the rumored performance of Nvidias RTX 5090, which leakers claim could be as much as 70% faster than the current RTX 4090.It looks like AMD is focused on that sweet spot of gaming performance weve seen over the past several generations, filled with cards around $500 like the RTX 4070 and RX 7800 XT. That seems like a winning strategy with Nvidia pushing flagship prices well above $1,000 and Intel target gamers with sub-$300 budgets. But it puts AMD between a proverbial rock and hard place, as its caught in the middle of conflicting pricing strategies.Jacob Roach / Digital TrendsIts important to keep in mind that a new graphics card needs context. You cant look at a GPU in a vacuum. The RTX 4090 from this generation is a prime example of that. Anyone can run the benchmarks and see its stupid fast, and you can even compare it to a last-gen GPU like the RTX 3090 to see the generational uplift. But is it worth the asking price? Will the RTX 4080 offer a significantly better value? These are the kinds of questions that are impossible to answer when a new generation starts. You need context.Nvidia, as the clear market leader, usually sets that context. Looking at the previous generation, AMDs RX 7800 XT isnt a good GPU just because.Its a good GPU because it offers comparable and sometimes better performance than Nvidias RTX 4070, and for $100 less. Nvidias dominant position means that it sets the tone for a generation, and in most cases, the merits of a GPU from AMD or Intel are judged based on how they compare to Nvidia. Im not saying this is the way things should be, but its the way things are.Often with 80% or more of the GPU market, Nvidia undoubtedly sets the pace each generation. Jon Peddie ResearchIt looks like the next wave of graphics cards will arrive around the same time. Nvidia is tipped to launch its RTX 50-series GPUs at CES 2025, as is AMD. I dont have crystal ball, but its looking like well have a new flagship from Nvidia next month, as well as AMDs top card from its RDNA 4 range, which is targeting that sweet spot price. It should go without saying that theres no way to compare these two GPUs. Theyre in completely different classes. They completely lackcontext.If this is the setup going into the next generation, I can already tell you the question everyone will be asking: What will Nvidias answer to AMDs top GPU be? Nvidia may launch some crazy flagship north of $1,000, and some crazy PC gamers (myself probably among them) will buy it. But without AMD competing at that level, all eyes will be on Nvidias answer to AMD. The question will be what Nvidia can deliver around the same price.That works against AMD. There will be some who go out and buy AMDs next-gen graphics card, but many more who will likely hold out until more of Nvidias lineup is revealed. It also gives Nvidia an opportunity to adjust its strategy at that sweet spot price, which is something we saw in this generation. Not only did we get a price drop and rebrand on the RTX 4080 12GB it eventually turned into the RTX 4070 Ti for $100 cheaper we also saw Nvidias Super refresh, with cards like the RTX 4070 Super designed specifically to combat AMDs offerings.Jacob Roach / Digital TrendsLaunching directly into the midrange also sets AMD up against itself. Lets do a hypothetical. Lets say the RX 9070 XT or whatever the GPU ends up being called is around 5% slower than an RX 7900 XT and around 20% faster than an RX 7800 XT, and it comes in at $650. So, youd be getting a GPU thats near the performance of what would cost you $900 in the previous generation with the RX 7900 XT, and much better performance than AMDs $550 to $600 offering with the RX 7800 XT.That sounds like a good deal until you consider that you can buy an RX 7900 XT for $650 right now, and even less on sale. Keep in mind that Im completely making up these numbers and points of comparison, but its a good illustration of the issues with AMDs more reserved approach in the upcoming generation. AMDs new midrange GPU will likely be competing with more expensive offerings from the previous generation that, due to their time on store shelves, have significantly fallen in price. And unlike previous generations where AMD would have suitable replacements for each card in its lineup, theres a very good chance those last-gen GPUs will be more powerful.Theres a very delicate balancing act AMD needs to play, which might make the RX 9070 XT a disappointing GPU. On one hand, the card needs to be priced competitively enough to compete with the falling prices on AMDs last-gen options. And on the other, it cant be so inexpensive as to completely undermine (and therefore crater) the prices on AMDs last-gen options. It has to stick the landing flawlessly, which is a tough ask.Im excited to see what the next generation of graphics cards will bring, from flagship offerings clearing $1,000 all the way down to 1080p workhorses duking it out around $300. Next month when the generation is expected to kick off, though, I suspect the situation will be fuzzy. Unlike something like Intels recent Arc B580, which is a very compelling offering at $250 regardless of the context, the battle for AMD in the next generation will be wrought with last-gen comparisons and Nvidia competition that Team Red wont hope to combat.Im not saying AMDs next GPU will be bad, and if everything clicks in place correctly, it might be an exciting option thats certainly what our very own Monica J. White seems to believe. Regardless of how it ends up turning out, one thing is for sure. The next few months will be a very exciting time for graphics cards.Editors Recommendations