AMD's current 7000 series graphics card generation is competitive, but it has been out for a year now and NVIDIA is giving them an increasing run for their money. NVIDIA has been increasing its market share for discrete graphics in China, with AMD now sitting at around 30%. It hopes to reverse this trend with its upcoming 8000 series Sea Islands generation GPU, which will reportedly appear in Q2 2013, although it had intended to release it in Q4 2012. Of course, NVIDIA isn't taking this lying down and is due to release an enhanced Kepler GPU-based card at around the same time. AMD is under pressure to do this while undergoing the biggest restructuring it's ever had to do in its life in order to stem the tide of financial losses. Not an easy challenge.
AMD originally planned to release the GPU series at the end of the fourth quarter to compete against Nvidia's products.