While this move could hurt AMD's bottom line, there is only good news for gamers looking to upgrade their system with a new (or another) GPU from AMD. With the release of NVIDIA's GTX 660 Ti at a price close to that of the HD 7870 and performance closer to an HD 7950, AMD has once again cut the pricing of their cards. The price cuts should kick in by the end of the week, so hold off purchasing those cards for another week to benefit from the new pricing and to give NVIDIA a chance to respond as well.
You've gotta love it when graphics hardware pricing starts trending away from the $500 mark!
There are two HD7950 available on NewEgg for $320, though if you include MIR this XFX model is the least expensive while most others are sitting at $330 after MIR. The 7870 GHz editions are starting to move towards the $230 mark which is better than promised and seem to have pushed the HD7850 out of the picture at $210 as that extra $20 gets you a lot more performance.
Be sure to check out our reviews on these recent graphics cards to find out which fit your specific needs!