Update Feb 28 @ 10:03pm It's official, NVIDIA launches $699 GTX 1080 Ti.
NVIDIA is hosting a "Gaming Celebration" live event during GDC 2017 to talk PC gaming and possibly launch new hardware (if rumors are true!). During the event, NVIDIA CEO Jen-Hsun Huang made a major announcement regarding its top-end GTX 1080 graphics card with a price drop to $499 effective immediately.
The NVIDIA GTX 1080 is a pascal based graphics card with 2560 CUDA cores paired with 8GB of GDDR5X memory. Graphics cards based on this GP104 GPU are currently selling for around $580 to $700 (most are around $650+/-) with the "Founders Edition" having an MSRP of $699. The $499 price teased at the live stream represents a significant price drop compared to what the graphics cards are going for now. NVIDIA did not specify if the new $499 MSRP was the new Founders Edition price or an average price that includes partner cards as well but even if it only happened on the reference cards, the partners would have to adjust their prices downwards accordingly to compete.
I suspect that NVIDIA is making such a bold move to make room in their lineup for a new product (the long-rumored 1080 Ti perhaps?) as well as a pre-emptive strike against AMD and their Radeon RX Vega products. This move may also be good news for GTX 1070 pricing as they may also see price drops to make room for cheaper GTX 1080 partner cards that come in below the $499 price point.
If you have been considering buying a new graphics card, NVIDIA has sweetened the pot a bit especially if you had already been eyeing a GTX 1080. (Note that while the price drop is said to be effective immediately, at the time of writing Amazon was still showing "normal"/typical prices for the cards. Enthusiasts might have to wait a few hours or days for the retailers to catch up and update their sites.)
This makes me a bit more excited to see what AMD will have to offer with Vega as well as the likelihood of a GTX 1080 Ti launch happening sooner rather than later!