News Nvidia Allegedly Readjusts Production Capacity To Make More Ampere GPUs

[Admin]

Reports from China claim that Nvidia is slashing GeForce RTX 2060 supply production in favor of more GeForce RTX 30-series GPUs.

Nvidia Allegedly Readjusts Production Capacity To Make More Ampere GPUs : Read more

 

[gargoylenest]

now, will they start producing more to profit from the inflated price, or are they gonna sell at reasonable price? I am afraid to know the answer...

 

[daworstplaya]

False hopes .....

 

[spongiemaster]

now, will they start producing more to profit from the inflated price, or are they gonna sell at reasonable price? I am afraid to know the answer...

Nvidia isn't responsible for the 2x to 3x over MSRP pricing for the 2nd hand market. There isn't really anything they can do about it. Newegg shuffles are the only source we have to give us any idea what manufacturers are charging for cards to retailers, and AMD cards are selling for significantly higher margins above MSRP than Nvidia cards are.

 

[Unolocogringo]

Why does Everyone blame NVIDIA for the high prices.
They are producing and selling video cards in record numbers.
Then we have a 25% tariff on video cards coming from china which raises the retail cost
Crypto miners ans scalpers are the cause of video card shortages and absurd high prices.

 

[hotaru.hino]

now, will they start producing more to profit from the inflated price, or are they gonna sell at reasonable price? I am afraid to know the answer...

https://shop.nvidia.com/en-us/gefor...e=en-us&category=GPU&gpu=RTX 3080 Ti,RTX 3080

Not a single card on this list is up for sale at eBay's prices.

 

[thisisaname]

Nvidia isn't responsible for the 2x to 3x over MSRP pricing for the 2nd hand market. There isn't really anything they can do about it. Newegg shuffles are the only source we have to give us any idea what manufacturers are charging for cards to retailers, and AMD cards are selling for significantly higher margins above MSRP than Nvidia cards are.

Yes and no, while in general they have not been to blame they did increase the price of the 3080ti from $999 to 1199 just a couple of hours before they launched it.

 

[hotaru.hino]

Yes and no, while in general they have not been to blame they did increase the price of the 3080ti from $999 to 1199 just a couple of hours before they launched it.

Is there any definitive proof they did this? Because as far as anyone knows, the $999 price tag was just a rumor.

And with a time frame that short, everyone up and down the supply chain would have to be in the know. A company can't just change its MSRP hours before launch and have every store magically catch up to that.

 

[funguseater]

There is a shortage of substrate materiels, this isn't going to solve ANY supply issues.

 

[bigdragon]

Why does Everyone blame NVIDIA for the high prices.

Mainly because Nvidia talks about how important gamers are to them, markets their GPU products and technologies aggressively, but then forces gamers to compete with miners and scalpers when it comes to buying Nvidia products. The result is that most gamers aren't able to acquire GPUs at MSRP or anywhere close. Nvidia could repair their reputation by selling GPUs through gamer storefronts where play time, game libraries, and purchase controls can separate the gamers from the scalpers and miners clogging up Best Buy.

 

[hotaru.hino]

Nvidia could repair their reputation by selling GPUs through gamer storefronts where play time, game libraries, and purchase controls can separate the gamers from the scalpers and miners clogging up Best Buy.

They also wouldn't be able to sell as many, considering the data from Steam hardware survey suggests that the vast majority of people who use said services stick to $200 or so cards. Plus adding a time and monetary gate when they already have to spend the the amount to buy those video cards isn't going to sit well with people (It's not like this is Ferrari where there's prestige in owning a RTX 3090, and in fact a lot of people will mock you for it). Plus such restrictions only delay the inevitable. You need 10 games? Okay, just buy 10 $1 games. Need 100 hours? Okay, just sit on a game for 4-5 days.

 

[spongiemaster]

Yes and no, while in general they have not been to blame they did increase the price of the 3080ti from $999 to 1199 just a couple of hours before they launched it.

When cards already on the market are all selling for 100% or more over MSRP, raising the MSRP by 20% has no impact on the scalping prices. The only people that were potentially affected by a price increase that may or may not have existed were the few hundred people camping outside Best Buys.

 

[DSzymborski]

They also wouldn't be able to sell as many, considering the data from Steam hardware survey suggests that the vast majority of people who use said services stick to $200 or so cards. Plus adding a time and monetary gate when they already have to spend the the amount to buy those video cards isn't going to sit well with people (It's not like this is Ferrari where there's prestige in owning a RTX 3090, and in fact a lot of people will mock you for it). Plus such restrictions only delay the inevitable. You need 10 games? Okay, just buy 10 $1 games. Need 100 hours? Okay, just sit on a game for 4-5 days.

Plus, even if you assume everybody acts in good faith -- no gaming the requirements to purchase, no straw purchases, no legitimate gamers seeing profit -- you also add a massive layer of bureaucracy, which naturally adds a great deal of cost.

Nvidia moves about 9 million discrete GPUs per quarter. Even taking out the ones that go to OEMs, the compliance costs on the rest would be absolutely grotesque.

Something like Linus is doing with the Verified Actual Game program is absolutely ludicrous to scale up.

 

[2Be_or_Not2Be]

If Nvidia had contracted amounts for materials going into 20x0 production, they should have switched those to 30x0 production lines a long time ago (like, 8 months ago at least). Sorry, not getting any high fives from me on that one, Nvidia!

 

[hotaru.hino]

If Nvidia had contracted amounts for materials going into 20x0 production, they should have switched those to 30x0 production lines a long time ago (like, 8 months ago at least). Sorry, not getting any high fives from me on that one, Nvidia!

They still had RTX 20 card orders to fill. So they couldn't just abandon that.

 

[SkyBill40]

"Allegedly."

 

[2Be_or_Not2Be]

They still had RTX 20 card orders to fill. So they couldn't just abandon that.

Yeah, but those should have been ramping down even before the release of Ampere. Frankly, Nvidia was just playing the same game it always does - make basically the same amount for initial release (i.e. an amount that never comes even close to the initial demand) & thus artificially increase the "demand" for the new product. Sure, they got caught by the pandemic, but they didn't even adjust when they could have (and probably did) forecast insane demand for the upcoming new release back in April/May '20. They could have shifted component contracts to the 30x0 earlier, even before the release of Ampere. The supply chain was already showing hiccups even before then.

I guess what really irritates me about Nvidia is the limited production they do with their new releases. Never once have they actually doubled (or tripled) initial production amounts from the previous models' release; they only increase a little each time. It's not like the larger amounts wouldn't have been snapped up. This is an anti-consumer trend for well over a decade, if not more.

 

[HideOut]

To me this sounds like horsecrap. The chips that they are short of are made by two different companies on two different processes. The only way they can make more 30xx is if Samsung can make them more GPU wafers.

 

[spongiemaster]

Yeah, but those should have been ramping down even before the release of Ampere. Frankly, Nvidia was just playing the same game it always does - make basically the same amount for initial release (i.e. an amount that never comes even close to the initial demand) & thus artificially increase the "demand" for the new product. Sure, they got caught by the pandemic, but they didn't even adjust when they could have (and probably did) forecast insane demand for the upcoming new release back in April/May '20. They could have shifted component contracts to the 30x0 earlier, even before the release of Ampere. The supply chain was already showing hiccups even before then.

They got hit with the pandemic and a mining boom at the same time. Even if they had predicted it, it would have been impossible to meet demand. We're 9 months past Ampere launch. Recent analyst reports are claiming record numbers of GPU's were produced in the last quarter. Crypto prices have tanked the last month, and there are still no signs that prices are decreasing or that supply is making any progress vs demand. There was nothing that could have been done to prevent this.

I guess what really irritates me about Nvidia is the limited production they do with their new releases. Never once have they actually doubled (or tripled) initial production amounts from the previous models' release; they only increase a little each time. It's not like the larger amounts wouldn't have been snapped up. This is an anti-consumer trend for well over a decade, if not more.

Any actual production data numbers to back any of this up?

Difficulty finding a card a month or 2 after launch has been a rare occurrence over the years. I've been buying cards at launch going back to the Voodoo2, and it's never really been an issue. I preordered an RTX 2080 at MSRP from Best Buy before launch and it was mailed to my house on launch day. I wasn't waiting around for a specific launch time and banging F5 trying to get one in my cart either. Ampere is the first time I've had any trouble landing a card for any significant amount of time after launch. Even then, I was able to get a 3070 at MSRP on launch day that I didn't really want, but kept it while trying to land a 3080 or 3090, which I did eventually get as well.

 

[Giroro]

So Nvidia is cutting the RTX 2060 and replacing it with ... nothing.
Neither Nvidia nor AMD are selling a current product with an MSRP to replace the RTX 2060 at $300 or below.

This is why people are (and should be) complaining about Nvidia's prices, regardless of what scalpers are doing. They have completely canceled entry level and midrange gaming. Instead they trying to normalize their high-end, extreme enthusiast, and halo products. They didn't even start this gen, the RTX 2xxx series pricing was totally out of line compared to Pascal, which is why Pascal is still in 4 of the top 6 spots in the steam hardware survey.
Eventually supply will stabilize and we will be forced to consider that, even at MSRP, most of the current-gen cards are not a good value for most people.

 

[2Be_or_Not2Be]

Any actual production data numbers to back any of this up?

Difficulty finding a card a month or 2 after launch has been a rare occurrence over the years. I've been buying cards at launch going back to the Voodoo2, and it's never really been an issue. I preordered an RTX 2080 at MSRP from Best Buy before launch and it was mailed to my house on launch day. I wasn't waiting around for a specific launch time and banging F5 trying to get one in my cart either. Ampere is the first time I've had any trouble landing a card for any significant amount of time after launch. Even then, I was able to get a 3070 at MSRP on launch day that I didn't really want, but kept it while trying to land a 3080 or 3090, which I did eventually get as well.

No, I don't have citations. Just what I've been experiencing over the years, so it's just my anecdotal experience. And we all know what those are good for! (grin)

Granted, this is the one time that it's really been such a big drought for product. I usually buy 3 months past the initial release, and I buy more on need than want (so I've skipped generations). But I guess the most irritating thing is that (I feel) the writing was on the wall for supply constriction well before the Ampere release. They could have shifted almost all lines from 20x0 to 30x0 back in May/June 2020. I mean, it seems everything was running out even by April '20. They've always had basically sell-outs for the initial launch, and they could see demands for other things like the AMD Ryzen CPUs, mobos, and the like were spiking in the months prior to the Sept '20 release. So why not devote all of your capacity to your new product, which you knew would have complete sell-through?

I guess a lot of this is the problem with the whole "Just in Time" mfg capability. No one thought the smaller stuff (substrates, et al) would also be in short supply.

 

[Yodl007]

Nvidia isn't responsible for the 2x to 3x over MSRP pricing for the 2nd hand market. There isn't really anything they can do about it. Newegg shuffles are the only source we have to give us any idea what manufacturers are charging for cards to retailers, and AMD cards are selling for significantly higher margins above MSRP than Nvidia cards are.

Sir, check your privilege, not everybody lives in the US. Here in a small EU country you cannot get the GPU from nvidia or the stores that sell the FE cards. They only sell them in those specific countries i.e. Germany, France, Spain, UK. If you are not living in those you cannot get them period. And our stores sell the GPUs for 2x to Xx MSRP. Actual stores, not scalpers. EU single market my arse.
And before you say to use a shipping forwarder from Germany, France, Spain ... You cannot do it, because the stores know them and won't ship to shipping forwarder addresses.

Not to mention that you people have at least triple the income we get. So, not only we are poorer, but we get prescalped GPUs that cost more than you pay for them.

 

[spongiemaster]

So Nvidia is cutting the RTX 2060 and replacing it with ... nothing.
Neither Nvidia nor AMD are selling a current product with an MSRP to replace the RTX 2060 at $300 or below.

The 2060 was replaced by the 3060. The launch MSRP of the 2060 FE edition was $350. Base MSRP was $300, but no sure there were any cards at that price at launch. The 3060 has a theoretical base MSRP of $330.

This is why people are (and should be) complaining about Nvidia's prices, regardless of what scalpers are doing. They have completely canceled entry level and midrange gaming. Instead they trying to normalize their high-end, extreme enthusiast, and halo products. They didn't even start this gen, the RTX 2xxx series pricing was totally out of line compared to Pascal, which is why Pascal is still in 4 of the top 6 spots in the steam hardware survey.

I'm not sure why so many people are struggling with why Nvidia and AMD have abandoned the low end right now. What's the point of releasing a low end product now? You think scalpers are just going to decide to ignore it and let it sell for MSRP? The 3060 has an MSRP of $330. In a typical market, AIB boards may creep up towards $400. They're selling for over $800 on Ebay right now. $350 cards are selling for over $800. The #1 card on Steam is a 1060. Nvidia released like a dozen versions of that card, so I'll skip it. The #2 card is a 1050Ti. The MSRP of the 4GB card at launch in 2016 was $140. Right now those cards are going for over $200 on Ebay. A used 4 1/2 year old card that can't mine ethereum is selling for 40% over original MSRP. If Nvidia released a 4GB 3050 for $200 right now, it would still be sold out everywhere and going for $350+ on ebay. If it had more than 4GB and could mine, you'd be looking at $500+ for a xx50 level card. Would that make you people happy? Of course not, you'd still be bitching that you can't find one and that the prices are absurd. It makes no sense at all for Nvidia or AMD to release a lowend GPU right now, because there is no way for them to make enough to keep them in stock, and no way for them to keep the price down. None.

 

[spongiemaster]

Sir, check your privilege, not everybody lives in the US. Here in a small EU country you cannot get the GPU from nvidia or the stores that sell the FE cards. They only sell them in those specific countries i.e. Germany, France, Spain, UK. If you are not living in those you cannot get them period. And our stores sell the GPUs for 2x to Xx MSRP. Actual stores, not scalpers. EU single market my arse.
And before you say to use a shipping forwarder from Germany, France, Spain ... You cannot do it, because the stores know them and won't ship to shipping forwarder addresses.

Not to mention that you people have at least triple the income we get. So, not only we are poorer, but we get prescalped GPUs that cost more than you pay for them.

Newegg doesn't sell FE cards, so that's not the MSRP I'm talking about. I'm talking about the MSRP of the AIB partner boards that Newegg sells which are higher than the price of the FE models.

 

[Augusstus]

No way Envydia noticed that ppl needed more of the 30 series GPUs. What other scheme must be going on? Does miners buy directly from them for 2x msrp with 0 day guarantee?