8350rocks :
Let me say this...if Intel kills off GPUs...no one will be happy with the state of PCs. Period.
To avoid further misunderstanding, let me emphasize that I wrote "discrete graphics cards".
The question is not "if". The question is "when", because the laws of physics and of economy are very clever about discrete graphics cards being killed.
The laws of physics say that an exascale APU is about 10x faster than a discrete GPU of comparable FLOPS. This means you would develop a 10x faster dGPU to compete with the APU. I.e. you would develop a ~3000W dGPU to offer the same performance of the 300W APU. This is the reason why Intel, Nvidia, and AMD will use APUs for exascale supercomputers and don't use discrete cards.
I already gave you a link from AMD chief engineer explaining they plan to use a 10TFLOP APU to build exascale supercomputers. What part of "don't use discrete cards" do you still ignore? Or do you really believe that all the engineers from Intel, Nvidia, and AMD are idiots and you know better than them how to build a exascale supercomputer?
Economy also explain why discrete cards will be killed:
So, where does this leave discrete graphics cards? Well, the low end market is certainly seeing reduced sales, as there really isn't enough of a performance difference nowadays to always warrant an upgrade from an IGP. As integrated graphics improve further, one can see how this will hurt sales of higher end graphics cards too. The problem is that the bulk of the profit comes not from the top-end powerhouse graphics cards, but from the low to mid-end cards which allow these companies to remain in business, so cannibalizing sales of these products to integrated graphics could make high-end graphics cards a much more niche product and crucially, much more expensive with to boot.
http://www.techpowerup.com/154374/are-improving-integrated-graphics-slowly-killing-off-discrete-graphics-cards.html
This is the same economic reason why Intel killed the big RISC guys in HPC.
All this stuff about graphics cards has been known/predicted/suspected since much before AMD brought ATI:
What if GPUs and CPUs Become One
If GPUs do eventually become one with CPUs as some are predicting, then the ATI acquisition would be a great source of IP for AMD. For Intel, getting access to IP from companies like ATI isn’t too difficult, because Intel has a fairly extensive IP portfolio that other companies need access to in order to survive (e.g. Intel Bus license). The two companies would simply strike out a cross licensing agreement, and suddenly Intel gets what it wants while the partner gets to help Intel sell more CPUs.
AMD doesn’t quite have the strength of Intel in that department, but by acquiring ATI it would be fairly well prepared for merging CPUs and GPUs.
http://www.anandtech.com/show/2055/2
Preparing for the Inevitable Confrontation with Intel
From ATI's standpoint, it's only a matter of time before the GPU becomes general purpose enough that it could be designed and manufactured by a CPU maker. Taking the concern one step further, ATI's worried that in the coming years Intel will introduce its standalone GPU and really turn up the heat on the remaining independent GPU makers. By partnering with AMD, ATI believes that it would be better prepared for what it believes is the inevitable confrontation with Intel. From ATI's perspective, Intel is too strong in CPU design, manufacturing and marketing to compete against when the inevitable move into the GPU space occurs.
http://www.anandtech.com/show/2055/3
Our Thoughts: The GPU Side
The AMD/ATI acquisition doesn’t make a whole lot of sense on the discrete graphics side if you view the evolution of PC graphics as something that will continue to keep the CPU and the GPU separate. If you look at things from another angle, one that isn’t too far fetched we might add, the acquisition is extremely important.
Some game developers have been predicting for quite some time that CPUs and GPUs were on this crash course and would eventually be merged into a single device. The idea is that GPUs strive, with each generation, to become more general purpose and more programmable; in essence, with each GPU generation ATI and NVIDIA take one more step to being CPU manufacturers. Obviously the GPU is still geared towards running 3D games rather than Microsoft Word, but the idea is that at some point, the GPU will become general purpose enough that it may start encroaching into the territory of the CPU makers or better yet, it may become general purpose enough that AMD and Intel want to make their own.
It’s tough to say if and when this convergence between the CPU and GPU would happen, but if it did and you were in ATI’s position, you’d probably want to be allied with a CPU maker in order to have some hope of staying alive. The 3D revolution killed off basically all giants in the graphics industry and spawned new ones, two of which we’re talking about today. What ATI is hoping to gain from this acquisition is protection from being killed off if the CPU and GPU do go through a merger of sorts.
ATI and NVIDIA both seem to believe that within the next 2 - 3 years, Intel will release its own GPU and in a greater sense than their current mediocre integrated graphics. Since Intel technically has the largest share of the graphics market thanks to their integrated graphics, it wouldn’t be too difficult for them to take a large chunk of the rest of the market -- assuming Intel can produce a good GPU. Furthermore, if GPUs do become general purpose enough that Intel will actually be able to leverage much of its expertise in designing general purpose processors, then the possibility of Intel producing a good GPU isn’t too far fetched.
If you talk to Intel, it's business as usual. GPU design isn’t really a top priority and on the surface everything appears to be the same. However, a lot can happen in two years -- two years ago NetBurst was still the design of the future from Intel. Only time will tell if the doomsday scenario that the GPU makers are talking about will come true.
http://www.anandtech.com/show/2055/8
Chief engineers from AMD and Nvidia know that discrete cards will be killed. Why do you believe that AMD is slowly transforming itself in an all APU company? Why do you believe that Nvidia now design APUs as well?
Don't say "no one", because this is wrong. Hundred of scientists like myself would be very happy with a PC based around an 20TFLOPS APU with a compute performance superior to 12 GTX Titan Black working in parallel.
I am also sure that most gamers would be very happy with graphics performance superior to 7 discrete cards R9-290X in crossfire.
8350rocks :
Considering you spend $350 now to get a $200 CPU + $50 GPU when you buy Intel...no thanks...I will take competition, thank you.
But discrete cards will be not killed by Intel 'APUs' that you can purchase today. You are missing the trend.
Check this slide given by AMD during Kaveri presentation
Each new Intel gen has bigger GPU than previous. Haswell CPU was a minor update over Ivy Bridge (except AVX2). Haswell Iris Pro introduced a huge jump in GPU performance over Ivy Bridge GPU.
Broadwell CPU will be again a minor update over Haswell. The main emphasis will be again on the GPU side. Broadwell GPU will introduce a huge gain in performance.
According to AMD, Kaveri A10 has 40% better graphics than Haswell i5-k. And I already shown before how the Haswell i5-R (with HD 5200 graphics) is very close to Kaveri A10.
According to Intel, Broadwell Iris Pro will be about 40% faster than Haswell Iris Pro. This means top Intel GPU will be faster than Kaveri top GPU. But the interesting news is that Broadwell-K will include Iris Pro. Add a 40% from updating from HD 4000 to Haswell Iris Pro and now adds another 40% from updating to Broadwell and you get that a Broadwell i5-k chip will have ~80% better graphics than a Haswell i5-k chip or, what is the same, a Broadwell i5-k chip will have 40% better graphics than top Kaveri A10.
http://www.techspot.com/news/54763-report-details-intel-broadwell-k-cpus-iris-pro-graphics-included.html
http://news.softpedia.com/news/2014-Bound-Intel-Broadwell-EK-CPUs-Get-80-Graphics-Boost-from-Iris-Pro-401991.shtml
After Broadwell comes Skylake, which is rumored to be another big update on the GPU side, with a new graphics technology that resuscitates Larrabe old plans.
Check the above slide again, I believe that by 2018 GPUs will account for about a 80% of the total APU size.
Of course this trend towards more GPU is also observed on AMD and Nvidia designs.