GPU Price hikes from last generations and before

[bowzef]

Hello, i live in australia so im not sure exactly how it translate to people in USA and UK and any other parts of the world.

First things first, my first GPU i ever bought was a GTX 9800 back in the day i paid about $230 AUS for it

Next card i bought was a GTX 580 paid about $370

then i went to a HD7970 Crossfire setup Both cards where $400 each total of 800 all up

now its 2016 excluding the Titans and Furys

the R9 390x is $589.00 AUS
and GTX 980 is $649 AUS

can someone explain to me why is there been huge increase in GPUs prices in this short period of time from GTX 580 to now? i don't seem to understand.

 

[kyzarvs]

Because they can?

Ideally there would be a third (or more) party to help create a market of competition. With just two players they don't need to be that price-concious as it's in their interests to keep prices high and it's easy to co-ordinate just two companies in the market without having to break any laws and rig it.

 

[bowzef]

Because they can?

Ideally there would be a third (or more) party to help create a market of competition. With just two players they don't need to be that price-concious as it's in their interests to keep prices high and it's easy to co-ordinate just two companies in the market without having to break any laws and rig it.

so its more to do with monopoly more then anything? i remember back in day we had price wars, this year i don't see it, just stagnant price same as release prices

 

[kyzarvs]

Company A releases a product that is a step above the previous one - with a higher price. Company B plays catchup, releases a similar performing product and pitches it very closely to A's price. There's nothing nefarious or illegal, but there's also no incentive to do it at a bargin price. If there was a company C or D that liked to come in late to performance level but at 70% of the going price, then things would be a lot more competitive.

At least the artificially high price hopefully contributes to a rapid R&D cycle and not just shareholder's dividend...

 

[bowzef]

Company A releases a product that is a step above the previous one - with a higher price. Company B plays catchup, releases a similar performing product and pitches it very closely to A's price. There's nothing nefarious or illegal, but there's also no incentive to do it at a bargin price. If there was a company C or D that liked to come in late to performance level but at 70% of the going price, then things would be a lot more competitive.

At least the artificially high price hopefully contributes to a rapid R&D cycle and not just shareholder's dividend...

Not saying its illegal just trying figure out the price gouging, and reasons behind it, and chances of 3rd company making GPUS is slim, though i do think GPU and CPU industry needs a shake up with someone stepping in.

 

[neieus]

Company A releases a product that is a step above the previous one - with a higher price. Company B plays catchup, releases a similar performing product and pitches it very closely to A's price. There's nothing nefarious or illegal, but there's also no incentive to do it at a bargin price. If there was a company C or D that liked to come in late to performance level but at 70% of the going price, then things would be a lot more competitive.

At least the artificially high price hopefully contributes to a rapid R&D cycle and not just shareholder's dividend...

Not saying its illegal just trying figure out the price gouging, and reasons behind it, and chances of 3rd company making GPUS is slim, though i do think GPU and CPU industry needs a shake up with someone stepping in.

You're right it would be nice to have a 3rd group come in and manufacture GPU's or CPU's but the reality is it's an expensive industry to be in. The market has proven that there's no money being in third place when you consider the previous GPU and CPU manufactures of the past. Cyrix comes to my mind for CPU's which I think was bought out by Via and I don't even know what they do anymore and then there was Matrox for GPU's.

 

[ComputerSecurityGuy]

Same story with CPUs. And Via still makes a few small embedded AMD64 chips. The ARM market is still pretty competitive which is good.

 

[neieus]

You also have to account for inflation which is a global issue or maybe the fact that they do cost more is because of inflation and not necessarily price gauging?

Yeah I'm sure it's greed but looking at it from both sides. lol

 

[kyzarvs]

You also have to account for inflation which is a global issue or maybe the fact that they do cost more is because of inflation and not necessarily price gauging?

Yeah I'm sure it's greed but looking at it from both sides. lol

Some of it will be inflation - and looking at performance per dollar it may well still be on the same figures.

But if Company A and B had the normal continual pressure from shareholders / the board to show growth and also had very little competition in pricing, my bet is that the lowest possible price would not surface very often.

Both businesses are trying to be the Mercedes of the market, which is fine - just unfortunate there's no Kia around to keep a perspective. It's a pity Intel doesn't make a serious third way.

 

[bowzef]

im also looking at upgrading and stuck on motherboards , not sure what im going get yet, but i already got my GTX 980 Ti MSI Gaming 6 just need a mobo already know im getting i5 6600k.