News AMD's Radeon VP calls RX 9070 XT demand 'unprecedented' — RDNA 4 launch 'milestone event

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The article said:
for the last several GPU generations, especially from Nvidia cards, GPU prices skyrocket immediately after launch and then never recovered. Nvidia RTX 4090 prices never settled back at or below MSRP for its entire lifespan
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First, it's a mistake to use the RTX 4090 as characteristic of its entire generation. It's an outlier.

Second, it did return to near MSRP, at a few points. It's not hard to find this, on sites like PC Part Picker.

Finally, because the RX 9070/XT cards are mid-range AMD cards, there should be less of a problem with AI bros buying them up and we should expect their price trajectory to better match what we saw with cards like the RTX 4070 Ti and RTX 4080.
 
The other thing to consider is that AMD hires the production capacity. And that is allocated in advance. Sure there are slots available for extra production runs, but those cost more than normal planned runs (and probably go into some sort of "auction" with bids for them).

So there is less wriggle room for more production than say Intel has, because Intel can decide to shift their production runs internally (which any foundry customers like AMD can't do).
 
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ingtar33 said:
in AMDs defense, i don't think they expected nvidia to step on their own penis so bad with the 5000 series, maybe if they had a year of warning they might have ben ready for it. but it was really a disasterous 2 months before the 9070xt launched.
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Yes totally. It was a genius business decision to hold the product back, giving time for the outlets to build inventory. Fortune was on their side when nVidia fell on its face (although they are still en route to destroy AMD this generation in sales).
 
Also waiting. MSRP $599 (for XT) is currently about 550 Euro. With VAT on top, that comes to a price of around 650 Euro. Prices in retail here though, near almost 900 Euro at the moment for cards in stock, plus another around 100 for OC versions. So nearly 250 Euro difference.
 
The only way to force prices down is to STOP overpaying for GPUs. Only that will force prices down. If people continue to overpay, retailers will continue to take advantage of high prices.
 
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Note to David McAfee, AMD Vice President and General Manager over Client Channel Business,

Please do lean on partners to ramp up production to levels where the actual MSRP priced cards are available for the everyday casual gamer.

I would like to upgrade my 3060 12gb but i am in no hurry if it is going to cost me a fortune that makes a 5000 series look actually "cheap".
 
Me and my old RTX3080 will just wait out the current generation and try again when the 6000’s hit.

I’m not sinking stupid amounts of money into a mini furnace with dumb power connectors that could Chernobyl on me at any moment just by looking at it funny.

Ended up buying a Mac Mini with the interest I earned on the savings I had allocated waiting for a card to come into stock.

Actually feels good to be out of the race.
 
While I understand that capacity was set well over a year ago. That said, I wish more of these cards were sold by random draw for verified accounts...

Without BS bundles, etc. it's bad enough that some models were 40-45% over MSRP to start from. I refuse to buy from a scalper. I feel like they should be shot and add nothing of value.
 
Kindaian said:
So there is less wriggle room for more production than say Intel has, because Intel can decide to shift their production runs internally (which any foundry customers like AMD can't do).
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Since Foundry and Products are different companies now, there isn't as much wiggle room to send capacity like this, it impacts margins.
 
Well, they thanked Intel for the 9800X3D success, so it's only fair to give credit to nVidia for this one, right? 😀

Not wrong, at all. One of their best launches in recent history, even with all the MSRP vs availability shenanigans going on. There's actual genuine demand for the card, plus all the help from nVidia XD

Regards.
 
tracker1 said:
While I understand that capacity was set well over a year ago. That said, I wish more of these cards were sold by random draw for verified accounts...

Without BS bundles, etc. it's bad enough that some models were 40-45% over MSRP to start from. I refuse to buy from a scalper. I feel like they should be shot and add nothing of value.
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AMD can use retailer rebates to that. Directly controlling or dictating demands to retailers is not going to go well. Nintendo lost that case here in the US (I think late 80's or early 90's) when it tried to force retailers to sell its then current console at MSRP. AMD can, however, nudge retailers and AIBs in the right direction with rewards like rebates. Positive reinforcement is generally more effective of punishment and threats.

If AMD wants to prevent bundles, they can limit a rebate offered to retailers to cards sold outside of the bundles.

If AMD wants to increase the prevalence of MSRP-ish models on shelves, it can limit retailer rebates, or AIB rebates for the chipset, to cards sold at a certain price point - i.e., MSRP. This could increase the profitability for the AIB and retailer of producing and selling MSRP models.

But if retailers think they can profit more by selling above MSRP or in bundles due to market demand, or if AIBs think they can profit more by producing and selling cards above MSRP, then AMD rebates will not work.

They could try to condition supply preference to AIBs producing certain quotas of MSRP cards, but again it has to be profitable for the AIB.

The increased demand, at the moment, makes these calculations more complicated. If demand is high enough that I can sell at high margin, and if supply is so low I have to just to make enough to stay in business, then I have to sell at highest margin possible.
 
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User of Computers said:
Since Foundry and Products are different companies now, there isn't as much wiggle room to send capacity like this, it impacts margins.
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For anything intel makes until now there is no other customer, they would have to redesign their products to be able to use older intel arches.
For the future with 18a maybe, but having the fabs full to the point they couldn't increase the production on their own stuff would be the best case scenario for intel.
 
Confused_Counsel said:
AMD can use retailer rebates to that. Directly controlling or dictating demands to retailers is not going to go well. Nintendo lost that case here in the US (I think late 80's or early 90's) when it tried to force retailers to sell its then current console at MSRP. AMD can, however, nudge retailers and AIBs in the right direction with rewards like rebates. Positive reinforcement is generally more effective of punishment and threats.

If AMD wants to prevent bundles, they can limit a rebate offered to retailers to cards sold outside of the bundles.

If AMD wants to increase the prevalence of MSRP-ish models on shelves, it can limit retailer rebates, or AIB rebates for the chipset, to cards sold at a certain price point - i.e., MSRP. This could increase the profitability for the AIB and retailer of producing and selling MSRP models.

But if retailers think they can profit more by selling above MSRP or in bundles due to market demand, or if AIBs think they can profit more by producing and selling cards above MSRP, then AMD rebates will not work.

They could try to condition supply preference to AIBs producing certain quotas of MSRP cards, but again it has to be profitable for the AIB.

The increased demand, at the moment, makes these calculations more complicated. If demand is high enough that I can sell at high margin, and if supply is so low I have to just to make enough to stay in business, then I have to sell at highest margin possible.
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They are not making enough money from GPUs to lose even more on rebates and such.
 
ingtar33 said:
in AMDs defense, i don't think they expected nvidia to step on their own penis so bad with the 5000 series, maybe if they had a year of warning they might have ben ready for it. but it was really a disasterous 2 months before the 9070xt launched.
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You know, the phrase step on their own penis would make one believe Nvidia has an enormous one. Or really short legs...
 
IMO, the main problem with the RX 9070/XT launch are the AIB's going for a plethora of excessive designs that cost an extra $50~200.... for a mid-range, 1440p card.
$50 is somewhat justifiable for the 9070XT, but for the 9070?
And then $200 extra? The card isn't power hungry enough, nor OC's to require a $200 extra fancy cooler.
 
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In normal situation… because nvidia has 90% market share, there should have been nine times more Nvidia gpus than AMD gpus in the market.
In their wildest dreams AMD could hope to double their market share from 10% to 20%. That would have been big win for AMD!
And about that is what I expected AMD to allocate to gaming gpus… I can not see where AMD could get any extra production capasity. The bigges payer get any extra production capasity and I expect that Nvidia, with fat AI purce, to buy all possible capasity to make more…. AI gpus.
AMD just can not fullfill all the demand alone. That is why expect that prices can not come down even for AMD gpus. There is just too much demand at this moment for AMD deliver enough to all who wants to have new GPU…
 
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hannibal said:
In normal situation… because nvidia has 90% market share, there should have been nine times more Nvidia gpus than AMD gpus in the market.
In their wildest dreams AMD could hope to double their market share from 10% to 20%. That would have been big win for AMD!
And about that is what I expected AMD to allocate to gaming gpus… I can not see where AMD could get any extra production capasity. The bigges payer get any extra production capasity and I expect that Nvidia, with fat AI purce, to buy all possible capasity to make more…. AI gpus.
AMD just can not fullfill all the demand alone. That is why expect that prices can not come down even for AMD gpus. There is just too much demand at this moment for AMD deliver enough to all who wants to have new GPU…
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Yes. And if GPUs going to hyper-scalers and data centers for AI user, then AIBs would be getting a limited supply of chips to make GPUs they can sell. Consequently, they would have to make more margin on each card to earn enough to cover the costs of keeping that part of their business operational. We cannot expect AIBs to design, market, manufacture, distribute, warranty, and service GPUs at a loss.
 
In some of the YT game benchmark videos i've seen, the 9070XT pushes up real close to the RTX 5080 in Non-RT games. It's like within 2-3FPS between the two and it beats it by a couple of frames in some other games at half the price.

In RT games the 5080 still holds a good advantage but RT is meh for me.
 
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