Word comes from AMD via a press release this morning that they are giving the Radeon R9 Nano a price cut. AMD’s diminutive flagship, which launched in September 2015 at $649, is now the first Fiji card to get an official price cut, with AMD lowering the MSRP to $499 effective immediately.

The third card based on AMD’s flagship Fiji GPU, the Radeon R9 Nano was in a sense a culmination of AMD’s design goals for Fiji. Seeking to take full advantage of the compact packaging afforded by the use of High Bandwidth Memory, AMD packed a fully enabled Fiji into a Mini-ITX sized video card designed especially for small form factor systems. The resulting card was neither a performance flagship card like the Fury X nor a clear second-tier card like the regular Fury, but rather a third card that occupied its own niche within the PC market. This coupled with its unique power binning requirements led to it being launched as a micro-sized alternative to the full Fury X at the same $649 MSRP.

This marks the first instance of a significant price cut for a Fiji card – since their respective launches we’ve seen all three cards drift lower by only $50 or so – and that the card receiving a price drop is AMD’s most recently launched Fiji card is a bit surprising. From a price/performance perspective the Nano was essentially priced as a luxury card, with AMD banking on being able to charge a premium for its improved power efficiency and small size. Today’s price drop essentially puts an end to that, especially since the two Fury cards are not receiving a price cut of their own. With that said, the Nano’s power requirements call for what is arguably the best Fiji chip bin, so that adds another wrinkle to the entire situation.

More interesting perhaps is where this puts the R9 Fury (vanilla), which can already be found for as low at $499. The R9 Fury is only a few percent faster than the R9 Nano and noticeably more power hungry as well, so if the R9 Fury remains at $499 then it's hard to imagine the R9 Nano not being disruptive to R9 Fury sales.

Finally, it’s also worth noting that this comes just days after NVIDIA’s most recent game bundle announcement. Although not specifically addressed by AMD, this may be their response to that bundle in order to shore up their lineup against the similarly-priced GTX 980. Especially since this now places AMD's most power efficient card against NVIDIA's most efficient card, offering about 5% better performance for 5% higher power consumption.