So let me get this straight: Most of you think that NVIDIA is dumb and:
1) Wasn't expecting Cypress to be smaller than Fermi
Fermi was well under way before the shock and awe of R770. Even AMD engineers weren't convinced that R770 was the right thing to do and were planning to make Cypress much bigger than it turned out. And remember R770's SIMDs/TUs grew by 20% "last-minute" when it turned out it was pad limited, so RV770 was faster than AMD originally planned for.
I doubt anyone here thought NVidia expected Cypress to be bigger than Fermi. After all, NVidia knew that that's not possible at TSMC, you know, since they have a big chip that's basically as big as anyone dares to go at TSMC. And there's a general suspicion that NVidia is addicted to the biggest possible chips.
2) Took absolutely no precautions to ensure that Fermi would be profitable
NVidia simply didn't adjust GF100 to the vagaries of 40nm at TSMC. Notice that AMD did adjust Cypress. Maybe that's simply because AMD is used to debugging TSMC's nodes early in their life, while NVidia "sits back"?
Fermi will undoubtedly be the right chip for 40nm at TSMC, at some point. The question is, when? Will GF102/GF112 (whatever, it's shrunken, tweaked, successor) on 28nm arrive before that? In theory NVidia should have less trouble at 28nm, now that it's been through the pain of this new architecture at 40nm. Depends how painful TSMC finds 28nm, I guess.
3) Doesn't know how to design chips
Clearly has problems executing since 2007. Despite that, decided to bet the pot on a major re-design with the biggest possible chip on a process that TSMC was clearly struggling with.
and despite the forward looking architecture and key elements of it, the performance delta over previous generations is barely 30% higher.
Count me out of that. I'm expecting it to be substantially faster than GTX285. Them old TMUs and ROPs are a disaster zone, for a start. And the ALUs, well...
If the new architecture is as fast as NVidia's claiming then NVidia could easily have afforded to make GF100 smaller to take account of the manufacturing problems at TSMC.
4) Will charge an arm and a leg for it, despite not having a good performance lead over the competition
I'm sure they'll sell all of them, regardless of price.
Jawed