About the 400$ pricing...
If i remember correctly the GTX280 launched at 650$ in middle of June.
Then AMD launched at end of june the 4870 at 300$ and after a couple of days NV forced to revise the GTX280 pricing at 450$ giving also rebate to those that bought GTX280 at 650$.
Then after one month in August ATI launched the 4870X2 at 550$.
So the 4870X2 was 100$ more than GTX280 in august.
Although i am not exactly happy for the pricing of 58XX, it is not so bad.
ATI strategy launching the 4870 at 300$, was not to confuse NV about what the future ATI pricing strategy will be, in the same logic, they must have launched the 2900XT for the same reason, lol...
ATI launched a 260mm2 GPU (RV770) at 300/200$ price points, with such a good performance, hoping they will gain market share in the discrete AIB market.
Sadly what ATI gained in market share in the discrete AIB market, was not what they hoped so the expirement was not so succesful as they hoped...
But their direction was good, they just have to maintain this perception that people started to have in Q2 2008 more than 1,5 year...
So the highest SKU for RV770 was 4870 at 300$ with 512MB 900MHz GDDR5 and 260mm2.
So why not launch a 338mm2 part with 1GB 1,3GHz GDDR5 (highest SKU 5870) at 400$?
The scaling is correct and the performance is there. (I would prefer 2GB ver at 400$, but that is just my wish...)
Also, if you consider that 4870 wasn't at launch the fastest card around (if the specs are true, 5870 at 850MHz 32ROPs/80TUs/1600SPs will be the fastest card in the market)
and that the 4870 was based in a little bit more mature (6months after 55nm RV670, regarding the 55nm TSMCs indicative yields) manufacturing process (the 40nm although same 6 month difference from 40nm RV740, had some parametric problems in higher percentage than what 55nm had)
and that usually (nothing definite/concrete in that, there are many factors..., but statistically based, with same rules...) for a 260mm2 part the possibilities is to have a little better yields than a 338mm2 part,
and also at launch the DX10 4870 had to compete with DX10 parts (GT200 based parts) while now the DX11 5870/5850 parts have to compete with DX10 GTX285/GTX295 (GT300 even if it launch in Q4 2009, i suppose it will launch after a month of 5870 launch date, that's the good scenario for GT300 launch...)
So you can clearly see that the price is not that bad.
Would i prefer a 300$ price?
Of cource.
Is it logical to demand this price if you think all the above?
No.
Also, AMD (needs money) has many financial problems, that will not be solved until bulldozer (2011 best case scenario) come to the market (although Intel is so far ahead, that i forecast that bulldozer cannot improve their ASP in a high degree (<1,5X), long talk...)