The A770 used a bigger die on a more advanced node then the then-current 3070Ti. Production date codes show they built a mountain of cards months ahead of launch while they tried to fix the drivers, leading to credible rumors that this was not the intended positioning or pricing but something they were forced into. Intel started hiding Arc’s numbers in their financials, which has fueled the rumor that Alchemist sales aren’t anywhere near covering R&D of future products.
Selling big dies for cheap and using profit from other products to plug the gaping hole in the R&D budget might work out okay for buyers for one generation, but it’s not a sign Arc is doing great and is assured to keep doing great.
I’d love to see a third competitor, I even bought an A380 to fiddle with, but I’m worried for their continued presence in the gaming/consumer dGPU space.