Here's what I'm thinking with the next Matrox cards.
They'll essentially pull an Nvidia on us and release a "family of cards". They'll have one basic chipset with varying speeds, so they can target the $200-$500 market. At the $200 level, you get the"value" card, with probably 32 megs of DDR ram, at slower speeds, but its good enough for DVD playpack (probably hardware accelerated), 2D and gaming.
The further you progress up the scale of the cards, you double the RAM, speed up the base clock and memory, without really adding anything more than a better yielded card and chip. At the top end, I wouldn't be totally surprised to see a 128 meg, DDR card, that fits into an AGP Pro slot (thats right, I said Pro).
If Matrox is smart, they'd copy what Nvidia is doing (family of cards), but just make better cards and keep up with the killer driver support. If Matrox can penetrate all levels of the video market, they could beat out ATI easily. However, if Matrox doesn't come to market with a card that is defiintely faster than the latest out there, they'll be pulling third behind ATI.
May the force be with them.
vash