News GPU Market Nosedives, Sales Lowest In a Decade

[TheDane]

Find a 4090 in stock. Even the 80s are selling and they are the reciprical of the last generations 90 to 80 value prop. There is 1 model of the 80 in stock at my local MC otherwise the same lack of inventory.

Both RTX 4090 and 4080 are in stock in many places around here.

 

[InvalidError]

Prices and margins have gotten too large in the GPU space. It's only a matter of time before prices are forced to come down by over-supply. Nvidia in particular

With Nvidia pumping those ~800sqmm H100/A100 datacenter/HPC chips, I don't think it minds a crash in consumer GPU demand anywhere as much as consumers mind the price hikes. It may very well be the main reason it decided to jack prices up this high despite the predictable demand collapse from the crypto crash.

Mid-range cards which should represent the best revenue may now be outweighed by inflated margins at the top end.

The RX6600 at its now common retail price of $220 is more or less what I would call a traditionally proper 60(0)-tier product. Still a bit more expensive than I would like but the price-performance step is very well worth it at ~100% more performance for ~50% more money.

 

[Eximo]

The RX6600 at its now common retail price of $220 is more or less what I would call a traditionally proper 60(0)-tier product. Still a bit more expensive than I would like but the price-performance step is very well worth it at ~100% more performance for ~50% more money.

I only question how much they could be making off of it. Would be interesting to see a BoM.

 

[InvalidError]

I only question how much they could be making off of it. Would be interesting to see a BoM.

The RX6500's BoM was ~$100 back during peak component shortages where it launched, so I'd guess the RX6600 costs $30-40 more on top today between the larger GPU die, TSMC price hikes, 4GB extra VRAM, beefier VRM, etc and support component prices including VRAM going back down to more normal levels.

 

[padrescout]

Yeah, raise prices 30% while also losing all the cryto market. I'm shocked, shocked that people don't find a freaking 1:1 cost over performance increase tempting.

 

[Ollyburger]

I'd love to upgrade my Nvidia 2080 for a 4080 but the cheapest I can find is £1250. That is a rediculous price for a consumer grade card - that is why cards are not selling.

 

[Deleted member 431422]

What is the point of mentioning that? People bought their PC's during COVID and don't need new hardware. It was obvious that short term spike in demand will end. Let's add artificially inflated prices, current economic situation... what's there to be surprised about.
It was fun to rake in all the profits during COVID pandemic. Let's see what happens with all the future manufacturing plants when people are more concerned with food and bills.

 

[Jaxstarke9977]

Going to hold off until the RX 7900 XTX is released next month and see if I can get my hands on one. If I can't I'll just opt for a 4080. I'm not going to play the waiting/hoping game again.

 

[MoxNix]

I'd bet most of the 4080s being purchased are being bought by scalpers. I hope they lose their shirts!

 

[geogan]

GPU prices would need to be cut in half for me to even consider one. Both Nvidia and AMD are off their rocker, no one is buying at these prices.

I just bought a Gigabyte 4080 from UK etailer - price was £1450 (1,756.70 USD).

Insane is right.

 

[geogan]

There are -plenty- of people wanting a new GPU, but at over $1100 for what is effectively the upper mid range model is just insane, and AMD's pricing is just as bad. I have a 2070 Super and would love a 4080, but not unless it drops to the $750 mark.

ha ha $1100 dollars... i wish... its around $1700 equivalent for me! see above

 

[hwertz]

Go figure. 1) Overpriced GPUs. 2) (At least in Linux, I don't use Windows) Mesa 3D now has excellent compatibility (I ran a bunch of DX11 games on a Sandy Bridge system!), and excellent performance. I've used both recent-model AMD Ryzen and Intel GPU systems and they were fine for 1920x1080 gaming (and the computers dodn't have a 4K screen so that was fine.) 3) They seem to just be putting out cards that are as fast as possible, without worrying about solutions as it were (solutions meaning cards that can easily drop into existing systems, without upgrading the power supply or cooling, or worrying about if the card will fit due to huge heat sinks.)

Due to option 1 and 3, I just bought a used GTX 1650 for about $100, I have no extra power connector and it's literally the only device on the market that stays under 75W (but ONLY the GDDR4 model, the GDDR5 pushes it over 75W again!)... other than some old like Geforce2s and such that are inexplicably still on the market from 15+ years ago. (Cards go straight from a GF2 for like $40 to $200+, with nothing in between.) They don't sell cards any more for someone who wants something better than their onboard video, but don't want to have to either install water cooling or have the computer sound like a full-blown vacuum cleaner. Many will see the choices now and just buy nothing (as is seen from sales figures.)

 

[wifi_engineer]

I'm happy to have contributed to the decline in GPU sales by holding off on new PC builds/upgrades. The last GPUs I purchased were 2x EVGA GTX 980 Ti's, for about $700 USD each, and they're still running strong. My only reason to upgrade would be to reduce my power consumption.

Looking at any of the Nvidia xx80 or xx80 Ti cards now and seeing the supposed "MSRP" just gives me reason to hold off longer. Card manufacturers got fat and happy off the greedy scalpers buying cards at any price and I believe their MSRPs were raised to keep turning up the "temperature" for the scalpers and miners.

 

[CDS1972]

Nvidia is going to have to drop prices significantly if they want to sell more cards as a business model that puts your product out of a reasonable reach of most consumers is not viable.

 

[Colif]

Either Nvidia is doing this on purpose to try and push people towards the 30-series, or gamers are speaking with their wallets

its both

the 4080 isn't helping the sales for this month.

depending where you are, 4090 can be hard to get or just so expensive you don't look ($AUD 3500.00) anyway.

Waiting to see prices on Dec 13.

 

[Quantum80]

100% due to crypto mining and 0% due to price gouging by Nvidia and AMD.

 

[Quantum80]

Cards over $1K used to be limited to Titan and Quadro business class cards. Now consumer grade cards are the equivalent of a small down payment on a vehicle. I could have never afforded these as a young adult. I remember getting a Rage 128 for $150, Voodoo Banshee for $199, the first generation Radeon with a TV Tuner (All in Wonder) for around $299, 9800 GTX Ultra around $300, GTX 570 for around $350, etc. We understand inflation over time, but this jump in pricing is unprecedented.

 

[Tac 25]

I'm happy to have contributed to the decline in GPU sales by holding off on new PC builds/upgrades. The last GPUs I purchased were 2x EVGA GTX 980 Ti's, for about $700 USD each, and they're still running strong. My only reason to upgrade would be to reduce my power consumption.

Looking at any of the Nvidia xx80 or xx80 Ti cards now and seeing the supposed "MSRP" just gives me reason to hold off longer. Card manufacturers got fat and happy off the greedy scalpers buying cards at any price and I believe their MSRPs were raised to keep turning up the "temperature" for the scalpers and miners.

would have liked to do the same and hold out. But sadly, had to give Nvidia some more money this year by buying a 3050 for $320 . Reason.. my 1650 could not run Dead or Alive VI in max graphics resolution (it's one of my favorite games), the 1650 also did not have ray tracing for King of Fighters XV. So being short on cash, looked for the cheapest RTX at the mall and brought home a 3050. It was a gamble.. was not sure it could handle Dead or Alive VI. Surprised and pleased that the 3050 is enough. I guess there really is a gap in strength between a 1650 and 3050. DoA 6 would lag severely and be unplayable if the graphics is maxed while using a 1650.. with the 3050, the game plays just fine even when maxed.

September this year I was planning to obtain another RTX, a 3060. Amassed enough funds by November... however, after some careful thinking.. realized another gpu is not needed. Because all games I own already run well. Put the money in the bank instead, to welcome the new year with a healthier bank account. lol

 

[CDS1972]

realized another gpu is not needed. Because all games I own already run well. Put the money in the bank instead, to welcome the new year with a healthier bank account. lol

There is that aspect as well to consider and it is one that I think Nvidia has failed at foreseeing.
After all it is well and good that their newest cards are powerful however considering the majority of games simply do not need that much power the question becomes will they be able to sell enough of them at the current extremely high price point? I honestly don't believe that they will and I would not be the least bit surprised for them to end up losing at least a few hundred million this year.
AMD has their Ryzen and Epyc line of CPUs not to mention their sales to Microsoft and Sony for the two companies console gaming systems to help shore any losses but Nvidia lacks that.

 

[hannibal]

Nvidia is going to have to drop prices significantly if they want to sell more cards as a business model that puts your product out of a reasonable reach of most consumers is not viable.

No they don´t have to. They just release low tier GPU at those more reasonable prices and keep high-end, at high-end prices... Unless of course AMD is nasty and "forces" Nvidia to reduce prices, but most likely Nvidia don´t have to even because of AMD, just because people just buy Nvidia GPUs... As I said before, if $1200 is too much Nvidia can sell 4070 below that. maybe $800 and 4060 even near $600 and 4050 $450 and so on... Nvidia always has models than are cheaper than 4080 or 4090...
Hopefully AMD start selling more than Nvidia, because that would force Nvidia to reduce prices... But when I talk about GPU, most people are just not willing to buy AMD GPU, so Nvidia can keep what ever prices it likes... In these forums you see more people who are bang for the buck type of people. But in real world. Images still sell more.

 

[InvalidError]

No they don´t have to. They just release low tier GPU at those more reasonable prices and keep high-end, at high-end prices.

Shareholders want ever-increasing income figures and your net income doesn't grow if you lose more sales from jacked-up prices than the price hikes can cover for. The very worst part about the RTX4080 is that it delivers substantially worse performance per dollar than the RTX4090. Historically, the performance per dollar peaked at the 60/70 tier and gets progressively worse either side of that. An absurdly priced RTX4070 won't fix Nvidia's problem if it also delivers horrible performance per dollar relative to everything else on the market.

With Nvidia's datacenter, HPC, AI, etc. sales projected to double over the next year though, Nvidia probably doesn't care about its gaming sales getting cut in half by exorbitant pricing.

 

[hannibal]

Yeah. That is true, normally cheaper GPUs has had better price / performance rate. Not they use same coolers in 4090 and 4080 even 4080 use much less power. They could cut the price of 4080, just using much cheaper cooling solutions, but we don´t talk about many hundred dollars. Maybe 100 dollar could be saved by using simpler cooler. 4080 has to be near 7900XTX in price, to be competitive, but Nvidia marketing can keep Nvidia floating even if its produces are worse in price / performance sector.
Lets see what happens when 3000 series are out of the market. Not the old stock is muddling the competitive situation a lot....

 

[Deleted member 14196]

If everyone stopped buying all their products they would lower prices. But for Stockholm Syndrome. Nvidia customers love the abuse apparently

 

[Tac 25]

As I said before, if $1200 is too much Nvidia can sell 4070 below that. maybe $800 and 4060 even near $600 and 4050 $450 and so on...

if they release a 4050 next year at 300$, I might buy it. Assuming it's short enough to fit into my pc case. Preferably 215mm in length or shorter, so all pc case in my house could use it.

 

[systemBuilder_49]

GPU prices would need to be cut in half for me to even consider one. Both Nvidia and AMD are off their rocker, no one is buying at these prices.

Lets take the 7900xt as an example. 52 TFlops for $900. I remember the Rx480. 5 TFlops for $270. So the price is about 3.33x and the performance is 10x. Same thing for the 2060 (6 TFlops for $320). The price/performance of the new 7900 GPUs is great. The 6950 if you can get one below $700, is also great, since its frame rate is 30% lower than the 7900, or worth $200 less. And there is a supply of both GPUs new at these prices. The 7900 xtx - is only about 3% better price/performance, and reviewers are losing their minds over this and trashing the 7900xt, even though you cannot find a 7900 xtx anywhere near MSRP, or at any price. I found 5 7900xt's today at MSRP, for sale.

overall, I feel like there has never been better value-for-money with AMD GPUs.

And don't forget that starting with 68xx and 69xx AMD mobile cpu's, you get 1.5 TFlops of RDNA2 iGPU power, 2x more than Intel has EVER produced. It's enough for esports at 60-90 fps at 1080p. Value for money. I have a ryzen 5700g cpu with 0.8 TFlops of iGPU, rx550 performance, handles 1080p for really light titles on low settings, or most games at 720p, and it can be moved to a HTPC later and still be a useful 3D device.

A GPU is a whole computer-within-a-computer, it has RAM, CPU, Cooling, Lighting, and Case. It just lacks a power supply.

People are trashing the 4080 but I have to say, it has the lowest power per frame and most quiet fan which is amazing. It absolutely sips power, 25% less power per frame compared to its closest competitor the new AMD 7900. Yes it's gigantic and can eat a lot of power but it also has all the bells and whistles, best ray tracing, best Cuda, best H.264 encoding, best Blender/3D-Rendering, and until today, best AI acceleration (it was beaten today by the 7900xt). Overall it's got a high price but it does freaking everything you would ever want to do with a GPU, it's a real 4-to-5-yr card. Value for money if you consider the longevity, $240 per year, better than a $500 card you keep for only 2 years.