In a bid to regain the market share it lost to its rivals, AMD has announced that it is dropping the price of its graphics cards based on the Polaris architecture. AMD confirmed that all the three Polaris-based graphics cards would receive a major price cut.

Many market analysts agree that AMD could be on track to regaining its position in the market by slashing the price of its flagship video cards. With the release of the RX 480 in June, AMD was able to regain some of the market share it lost to its chief rival Nvidia.

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Over the past several quarters, Nvidia has been focusing on the hardcore gaming market. Foregoing this specific market space, AMD decided to focus its strategy on the entry-level gaming market, a strategy that has so far paid off.

However, when Nvidia launched the Pascal-based GTX 1050 and GTX 1050 Ti video cards intended for the entry-level gaming market, AMD faced a major challenge. Instead of releasing a new reference card to counter Nvidia's new products, AMD chose to slash the prices of its graphics cards instead. Following the price cut, the entry-level Radeon RX 460 will have a starting price of $100. The basic Radeon RX 470 configuration will cost $170, according to Fool.

Despite the price cut, some tech analysts still believe that AMD will be fighting a hard battle now that Nvidia has thrown its hat into the entry-level gaming market. According to Tom's Hardware, the Nvidia GTX 1050 edges out the Radeon RX 460 in almost every benchmark. Since the GTX 1050 was launched at around the same price point as the RX 460, it is only logical for AMD to drop the price of its graphics card to make up for the performance gap.