The quote in the first post on this thread regarding marketshare numbers is deceptive.
NVDA actually lost 4% of overall graphics share, while Ati gained 2% of overall share. Intel was the big winner, with 5% marketshare gain. The first post of 64% is for standalone graphics products and excludes mobile and integrated graphics.
Overall marketshare of all graphics products shipped is 27% NVDA, 21% ATI, 32% Intel and the rest is small fry. Intel's gain is of course in integrated graphics - and they gained cpu marketshare so it's natural they would gain in graphics also with their motherboards.
Fortunately for Ati, Ati will soon have the best integrated graphics solution for the Intel desktop market which will help them to gain more overall share. If the product is reasonably successful, I wouldn't be surprised to see Ati overtake NVDA in overall marketshare in two quarters.
Remember, there is only a 6% difference overall in marketshare between Ati and NVDA now.
So things aren't very good for NVDA. They maintained standalone desktop but lost share in every other segment, including mobile (lost about 8-9%). And NVDA's margins are going to be down this quarter. They blamed this on .13 yields but I'm sure that having such heavy competition in the high end and mainstream performance has played a significant role.
In the mobile segment, Ati increased their share of all portable graphics shipped by 8%.