So this is the only competitive advantage NVIDIA has bought itself over AMD in the short term. But if, and it definitely is an if, it does succeed in catalysing demand for improved physics processing, then the victory will be considerably greater. From AMD’s point of view this is definitely a setback. However, it must also reside near the bottom of its fire-fighting priority list. In the GPU space it needs to start giving NVIDIA a regular run for its money before it starts worrying about other technologies. But the number one priority has to be where the main volume of PC sales occurs – the cheap-and-cheerful laptop sector (see below), where Intel currently dominates. If AMD doesn’t address these markets effectively then the game could be over long before physics becomes a major factor.

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