News GPU Prices Will Eventually Plummet, Analyst Says

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bigdragon

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I agree with this analysis. GPU prices are poised to plummet. Crypto mining, stimulus funds, travel restrictions, scalpers, and supply chain constraints all conspired to wreck the GPU market. Mining is no longer crazy profitable, there hasn't been any more stimulus, people are traveling again, and production is up. Scalpers are finally getting squeezed, but it's going to take a while for retailers to wake up and start dramatically undercutting them. Prices go up like a rocket and fall like a feather.

Just wait several more months, gamers and content creators. You can hold. Just wait it out. You'll feel terrible in a month or two if you buy now.
 

InvalidError

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"Prices will drop when retailers have excess inventory."

You need a freakin' doctorate degree to figure that one out? I could have told you this much from home economics back in high school. Almost anyone with a working brain should know basic supply-and-demand.

Then again, supply-and demand is kind of broken when Apple tells Amazon to destroy inventory instead of doing clearance sales.
 
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Deleted member 1353997

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"..prices will eventually plumet."
I'm playing the long game, when they start giving away GPUs for FREE. 😎
I know you're joking, but even in the worst case they won't. Since it's cheaper to destroy those GPUs than to give them out for free, that's what they'll do. It's a disgusting waste of resources, but that's where capitalism has led us today.
 
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Then again, supply-and demand is kind of broken when Apple tells Amazon to destroy inventory instead of doing clearance sales.
That's the definition of supply and demand, they increase demand since people know that there is no reason to wait for sales since they never go on sales and they also decrease supply (mainly to the secondary market) .
 

SyCoREAPER

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"Something is expensive now but will eventually get cheaper, I just don't know when"

How insightful and intellectual of the analyst. Pointing out how the world works is apparently news...
 
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InvalidError

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That's the definition of supply and demand, they increase demand since people know that there is no reason to wait for sales since they never go on sales and they also decrease supply (mainly to the secondary market) .
Normal supply and demand assumes the manufacturer won't sabotage its own supply and manufacturing capacity.

When you have a handful of suppliers who can afford to say "our price or nothing" then you have an oligopoly situation where oligarchs set prices regardless of market conditions since they have a captive audience.
 
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And that's what we saw before this insanity when nVidia and AMD DOUBLED the base prices of their video cards from the RX series to the 5000 to 6000 series and 1600 to 2000 series instead of doing what they had done in every generation past and kept the prices close to the same for the models they replaced and decided to price match each other instead of competing, it was pure and simple price fixing by a duopoly, then cryptocurrency and a component shortage exacerbated the situation.

It's sad to say that the only hope customers have of returning to a PROPER competitive market is for Intel to actually come in and be both competitive in price and performance, which is strangely not as unthinkable as it was just a couple of years ago if Alder Lake is anything to go by.
 
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watzupken

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The comment is meaningless. It is like saying the apple will eventually drop down from the tree one fine day. My question is when or how soon? Prices have come down quite substantially at this point and that decline is slowing down. So it really depends on how strong is the existing demand.
 

david germain

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As the US/G5 get more and more control over cyrpto. it will be less and less interesting/safe/decentralised and thus less useful to own.
central bank digital currency (CBDC)
 

Friesiansam

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Peddie thinks inflated prices will likely plummet when retailers and scalpers have excess inventory that they can't move, and we agree with the analyst. The issue is that what Peddie suggests won't happen soon, so we must exercise enormous patience to avoid temptation.
No problem with patience here, not even going to consider buying a new GPU until next year.
 

aberkae

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Um prices already fell last week. Eg. Local microcenter has hundreds of gpus in stock. The 3080ti fell to $1329, 3080 12 gigs $1049, Evga website has the 3090ti ftw3 ultra no lines for $2199, 3080ti hybrid for $1499, 3080 hybrid for $1299 etc etc. This is before Intel's gpu puts pressure from the midrange!
 

Endymio

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it's cheaper to destroy those GPUs than to give them out for free, that's what they'll do. It's a disgusting waste of resources, but that's where capitalism has led us today.
If you can't scrape up enough to buy a card at a price above the level where it'd otherwise be destroyed it, you don't need it. The only "disgusting" thing here is the misinformed hatred of capitalism, and the benefits it brings us all. If you disagree, you might wish to check out the booming economies of Cuba, North Korea, or Eritrea.
 

Endymio

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nVidia and AMD DOUBLED the base prices of their video cards...it was pure and simple price fixing by a duopoly
The mere fact that those doubled prices failed to supply demand proves irrefutably that it was not price-fixing. The new MSRPs were substantially below the equilibrium price. Ideally, it would have been better for us all had they raised prices even higher. That would have reduced the scalping market, and enabled them to capture more deadweight loss, and thus ramp up production faster.
 
Based on trends and data, max inflection point (2nd derivative) points to mid may. This is when prices will fall the fastest. People better buy their supply before September however. Prices will head back up after that.
 
Some people got their hands on Samsung's GBP2 and first impressions indicate drivers are still half-baked. Not looking good for DG2 becoming a credible threat to AMD and Nvidia. I'm not expecting Intel to become a credible option until DG3.
Half-baked in what regard?
If the driver front end looks good and most popular games are playable almost nobody will complain anyway, but I'm curious on what issues the drivers might have.
 

InvalidError

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Half-baked in what regard?
If the driver front end looks good and most popular games are playable almost nobody will complain anyway, but I'm curious on what issues the drivers might have.
From what I heard: handful of relatively popular games are failing to load and for those that do work, worse frame time variance (more noticeable stutters) than other comparable GPUs.
 
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Deleted member 1353997

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The only "disgusting" thing here is the misinformed hatred of capitalism, and the benefits it brings us all.
Except the only misinformation happening here is the misinformed idolization of capitalism, and the harm it brings us all.

But since logic doesn't seem to be your forte, let me put it another way:
Water is necessary for life. If you don't drink water, you die. But at the same time, too much water can kill. Drink too much, and you'll die.

The same applies to capitalism. Failure to recognize that is proof that you're the one who's misinformed.
Not that I'm surprised, since you seem to believe that "if it's not capitalism, it must be communism".

Good day to you, sir.
 

Endymio

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Your...misinformed idolization of capitalism, and the harm it brings us all.
To steal a quote, capitalism is the worst economic system -- except for everything else we've ever tried. Capitalism has never killed anyone. It may have failed to save someone who actually died due to the immutable laws of physics or biology. But the number of people murdered due to a misplaced belief in statist Socialist/Communist systems in just the last century is more than one billion. That's billion with a "B".

Oh, and I cringe to imagine the torturous logic used to claim that your right to a free graphics card that would otherwise be discarded proves the "horrendous evils of capitalism".
 
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