ATI has been hard at work on their next series of graphic cards. After the excellent HD38xx release, things are looking better for ATI since the release of the HD2xxx series which didn't go down too well at the time.
The HD48xx series of cards are armed with ATI's new RV770 chipset, built using 55nm production. The card also sports 512MB of GDDR3 memory. It is extremely powerful for its size (with the stock HD4850 being a single-slot product), price (launch price for HD4850 is only $200 USD) and power usage (with the card only using 269 watts when under a load).
Just check out some of the benchmarks over at the Guru3d article I linked to see this little beauty in action. Its got a little more grunt than Nvidia's 9800 GTX in most titles, with ATI's card retailing cheaper to boot (and sporting a better feature set).
In a few more weeks the HD4870 will be unleashed (with more agressive clock speeds and sporting GDDR5 memory) that'll pack even more bang. A little while after that we will see the HD4870X2 which is 2 GPUs stacked onto one board.
Needless to say its exciting times for both ATI fans and even Nvidia fans alike, because this newfound competition will drive down prices in every direction and lead to even more innovation in graphic solutions.