While speaking with analysts at the Deutsche Bank Securities Technology Conference on Wednesday Nvidia's Sr. Vice President of Investor Relations, Mike Hara downplayed the importance of DirectX 11 and its influence on GPU sales. From Xbit Labs:

“DirectX 11 by itself is not going be the defining reason to buy a new GPU. It will be one of the reasons. This is why Microsoft is in work with the industry to allow more freedom and more creativity in how you build content, which is always good, and the new features in DirectX 11 are going to allow people to do that. But that no longer is the only reason, we believe, consumers would want to invest in a GPU.

Now, we know, people are doing a lot in the area of video, people are going to do more and more in the area of photography… I think that the things we are doing would allow the GPU to be a co-processor to the CPU and deliver better user experience, better battery life and make that computers little bit more optimized.”

While it's certainly true that the DX11 API itself isn't the only reason users buy new cards, the performance next-generation DX11 hardware will bring in existing DX9 and DX10 games certainly is probably the most defining factor. Hara disagrees though:

“Graphics industry, I think, is on the point that microprocessor industry was several years ago, when AMD made the public confession that frequency does not matter anymore and it is more about performance per watt. I think we are the same crossroad with the graphics world: framerate and resolution are nice, but today they are very high and going from 120fps to 125fps is not going to fundamentally change end-user experience. But I think the things that we are doing with Stereo 3D Vision, PhysX, about making the games more immersive, more playable is beyond framerates and resolutions. Nvidia will show with the next-generation GPUs that the compute side is now becoming more important that the graphics side."

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