14 DAY TRIAL // If end-users aren't already overflowing with glee generated by the recent release of NVIDIA's graphics adapters, they might just end up jumping for joy when they hear that a rather large number of motherboards will soon get significantly cheaper. Specifically, ASUS will reportedly be decreasing the prices of its entry-level and mid-end motherboards, with the specific intention of widening the price gap between its own and its rivals' products. This decision comes after the performance of the company's motherboards in China was equal to that of Gigabyte's products.
This intention of ASUS was suggested by a Digitmes report, which also revealed that such a price reduction would trigger a price war in China. The Intel G31-based motherboards have already dropped from 330 yuan (US$48.34) to 299 yuan, whereas G41 products fell from 380 yuan to 330 yuan.
ASUS has also reduced the prices of its AMD 770 mainboards, from 550 to 499 yuan. Taiwan-based ECS (Elitegroup Computer Systems) and ASRock are expected to be the most severely affected by this development. This is likely because they have been closely focusing on the entry-level Chinese market. Furthermore, a wider price gap is expected to significantly impact Chinese mid-range players as well.
Of course, a price war can't be fought by a single side, which means that any other companies will have to somehow match ASUS' offer by making their own price reductions. One company, Gigabyte Technology, hasn't yet made a move, wanting to monitor the developments further. On the other hand, Micro Star International has already made its move and supposedly decided to make price cuts of its own.
According to the rumor, motherboard makers don't believe ASUS' reported motives, believing that this tactic is only meant to help the company more quickly digest its inventory. If so, the price war is not expected to last long.