He's talking a lot more broadly about the OEM PC market. Don't think that reflects much on sales of retail 65nm GTX 260 parts which seem to be doing well all things considered. In any case, the 55nm version is the same price so I'm not sure why market conditions are relevant - if the 65nm was not selling, neither would the 55nm.
Well the last 65nm parts appear to be dated week 35(ie august) and they are still selling today, and look like doing so for another month at least. If product was selling well would have inventory <60 days, this product appears >90 days. According to this guy nvidia reported at the credit suisse conference in early december that their market share for high end gpus dropped from 80% to 30% of the market for the third quarter. Since then due to aggressive marketing and pricing surely they have recovered somewhat.
Was trying to point to a bigger problem. The customers, the market, for high end gpus seems to have disappeared Either they are not buying or have moved down to lower price brackets. Nvidia will have to rebuild this market from scratch. Meanwhile have cut their production quite a bit. Fortunately for nvidia all the apple deals that seem to be coming through to patch things up nicely.