FUD Zilla reports the reason why NVIDIA dropped the GeForce 8800 Ultra's price is because the sales were very poor. Now they are selling better.
Nvidia recently dropped the price of the Geforce 8800 Ultra cards by about $80 and the mighty Nvidia offers price protection to its etailers and retailers.
This is a unique case, but Nvidia actually gave $80 in cash to everyone who had 8800 Ultra in stock to save them from the loss. Nvidia did it because the cards didn’t sell and because the big green pushed the price envelopes a bit too much.