ATI's first 40nm desktop chip, RV740, the brain of Radeon HD 4770 will have to take on Nvidia's Geforce 9800GT card. First reports indicate that Radeon HD 4770 should end up faster than 9800GT.

At the moment Geforce 9800GT is selling for $119 to $139 depending on the model, but once ATI introduces the Radeon HD 4770, we are very sure that Nvidia will have to adjust its prices.

The big issue is that Geforce GTS 250 is priced at $139 and more and if necessary, Nvidia might actually drop the price of this card to hurt 40nm Radeon HD 4770 sales.

In this market segment, the price / performance ratio will play the big role, with accent on the price part.