Today, AMD is allowing websites to post "performance previews" of the new RADEON HD 3850 and 3870 video cards.  These cards are basically leaner versions of the HD 2900XT that will offer all or most of the 2900 series' performance at a significantly lower price point and power consumption level.  As I browse the various reviews of these cards around the internet, it appears AMD has succeeded.  However, the 2900XT wasn't the highest performing video card to begin with...the 8800GTX and Ultra regularly performed better.  However, the intriguing thing about the 3000 series is the price:

3850 - MSRP $179 (currently available at Newegg for that price)

3870 - MSRP $219 (unavailable at the moment)

Like the 8800GT, these cards offer fantastic value for their price.  The 8800GT will perform equally or up to roughly 25% better than the RADEON 3870, depending on the application, but the 8800GT's MSRP is also higher ($250) and its current street price is even higher than that (around $290). 

The story gets even more interesting when Crossfire is considered.  Legitreviews was able to get their hands on two 3850 cards, and when used together, these cards performed better than even the 8800 Ultra (which sells for $550 minimum)!  As an example, the 3DMark06 scores for the 8800Ultra are 14,537 and the two 3850s turned in a score of 15,491.  Two 3870 cards (which would cost about $450) would even report higher performance.  Additionally, AMD is unveiling Crossfire X technology, which will allow up to four video cards to be used on the upcoming RD790 chipset motherboards.  Four 3870 cards would provide massive performance. 

So, what does this all mean?  For one, the 8600 GTS is essentially dead unless its price drops significantly.  The RADEON 3850 beats it to death in every benchmark at the same price point.  Also, the power effeciency of the new AMD cards would make them good candidates for the HTPC user.  Next on the performance lineup is the 3870.  Its performance is good, and it is priced competitively enough to provide real value.  However, for only $30 more the 8800GT performs significantly better in certain situations (if it can be found at its MSRP of $250).  The very high end remains unchanged.  The 8800GTX and Ultra provide the best performance available, even after an entire year at the top.  It is unfortunate to see this lack of innovation on the high end, but the development of cheaper cards that perform very well while maintaining acceptable levels of power draw and noise is very exciting, and I can't wait to see some of those optimizations make it to the high end.

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