News Steep RTX 30-Series Discounts Suggest Impending 40-Series Launch

[Admin]

Nvidia is discounting its RTX 30-series GPUs at a steep rate, in an apparent attempt to deplete its overabundance of 30-series GPUs prior to the 40-series launch.

Steep RTX 30-Series Discounts Suggest Impending 40-Series Launch : Read more

 

[bigdragon]

The 40-series production contracts were likely locked into place during the pandemic shortage and mining boom. This is why I don't think Nvidia can push back the 40-series launch until next year. I think we will see the 4090, 4080, and 4070 before the Christmas shopping season.

I think this article is right about the need to reduce inventories. The 30-series is clogging up shelf space and warehouse inventories right now. The high-end is especially bad. Now that mining and scalping is out of the picture, PC GPUs are being forced to compete with their much more affordable console competitors -- who also happen to have a steady stream of new games.

I'm not sure why anyone would buy a 3090 Ti for $1150 or a 3080 Ti for $850 when the 40-series will give the same performance at half the price. These aren't deals yet.

 

[InvalidError]

Since Nvidia tried to dump 5nm wafer starts and TSMC told them to take a hike, what Nvidia must be the most worried about is having an over-supply of Ada chips while still sitting on heaps of Ampere stock.

 

[ThatMouse]

I'm not sure why anyone would buy a 3090 Ti for $1150 or a 3080 Ti for $850 when the 40-series will give the same performance at half the price. These aren't deals yet.

I bought the 3080 on a recent sale with the idea that the 4080 will be $900+ and be hard to find for the next 6 months. We will see, but I'm happy with my decision.

 

[KOSjet]

So a quarterly loss is very different from a drop in revenue. @AaronKlotz, you may want to correct this difference.

 

[LastStanding]

As much as I would just enjoy witnessing NVIDIA, etc, TRULY get hit hard financially, don't be fooled by these water cooler (gossip) numbers, though.

NVIDIA is still very strong in the black and these today numbers are just the results of some investors selling off some of its shares to profit from, one in a lifetime, NVIDIA's wild success these past few months (especially in 2021) and they'd likely buy back more shares before Ada releases.

Remember, at this same time in 2020, NVIDIA's share price/M-Cap was ~$160B, but since then, NVIDIA's shares were increased and overvalued by shady analysts up to 500%+ (in 12/21, same company, selling the same products, just a refresh, and no new line of tech gadgets) so, considering that and what its share price is today, NVIDIA is still profiting very well over the noise.

 

[Darkbreeze]

Since Nvidia tried to dump 5nm wafer starts and TSMC told them to take a hike, what Nvidia must be the most worried about is having an over-supply of Ada chips while still sitting on heaps of Ampere stock.

LOL

This, is what happens when companies move away from just trying to supply a product and make as much (Which is OFTEN a LOT) as they can off it while it's desirable, to trying to get greedy and make unrealistic progressions into parts of the market that there is no clearly defined leverage in , yet. And it usually ends up poorly for the aggressor. So, hard to feel sad for them.

 

[mickrc3]

I needed GPUs for two computers intended for occasional gaming so I picked up some from EVGA Friday when the deals started. $220 each for the EVGA RTX 2060 6GB KO Ultra Gaming. Yes, soon to be 2 generations from the cutting edge, but these are going into two hand-me-down X470 motherboards with Ryzen 7 2700X CPUs that previously fitted out with an AMD Radeon RX 470 and a GeForce GTX 970. These will be given to nephews currently running Athlon II systems which I also built for them a half dozen years ago.

 

[TJ Hooker]

NVIDIA is still very strong in the black and these today numbers are just the results of some investors selling off some of its shares to profit from, one in a lifetime, NVIDIA's wild success these past few months (especially in 2021) and they'd likely buy back more shares before Ada releases.

What numbers are you referring to? Because the article talks about graphics card prices and revenue, neither of which have anything to with share price/selloffs.

 

[BILL1957]

What numbers are you referring to? Because the article talks about graphics card prices and revenue, neither of which have anything to with share price/selloffs.

Most of the time what they call a "loss" is nothing more than they made that much less profit than was originally forecast for the period.
They have actually lost nothing just made a bit less than they were hoping for.
Then also you have to remember talking about EVGA is not the same as talking about Nvidia.
Evga is a separate company that happens to make GPU cards designed by Nvidia using some components supplied by Nvidia.
When EVGA was selling a 3080 GPU through their web site last year for $1400 no one is reporting on the amount of profit margins or the billions they were making then!
Same with the 3090, EVGA never sold one card for the Nvidia msrp of $1499, please don't expect me to start crying now!

 

[InvalidError]

Then also you have to remember talking about EVGA is not the same as talking about Nvidia.
Evga is a separate company that happens to make GPU cards designed by Nvidia using some components supplied by Nvidia.

Except that if EVGA overpaid for Nvidia's GPU kits, EVGA needs Nvidia to refund some of the overpaid money to afford dropping prices low enough to actually sell the stuff. It isn't a strictly one-way street. Part of Nvidia's lowered gross income likely comes from having to issue discounts to help AIBs clear inventory.

 

[BILL1957]

Except that if EVGA overpaid for Nvidia's GPU kits, EVGA needs Nvidia to refund some of the overpaid money to afford dropping prices low enough to actually sell the stuff. It isn't a strictly one-way street. Part of Nvidia's lowered gross income likely comes from having to issue discounts to help AIBs clear inventory.

True but you can bet Nvidia is not going to absorb or eat all of the cost cutting that needs to happen.
DID Nvidia instruct the AIB partners to basically slow or stop production last November to control inventory levels or was this something the AIB's did on their own.
Sales were hot then and they could have sold everything they produced then for top dollar.
We will never know what goes on behind the closed board room doors in reality.

 

[InvalidError]

DID Nvidia instruct the AIB partners to basically slow or stop production last November to control inventory levels or was this something the AIB's did on their own.

Why would they do anything back in Novermber last year? The crypto crash didn't happen until earlier this year. Also, telling AIBs to slow down wouldn't have helped Nvidia who has to order wafers 6+ months ahead of time for the next several months beyond that. By the time November 2021 came around, Nvidia likely already had ordered all of its wafers for 2022.

 

[cloud7s7]

I'm still sporting a 1070 TI, the whole scalper non-sense put my upgrade on the back burner. One of these days I'm going to get that new card but I'm not going to pay out the nose for it. Plenty of other games in my Steam library to play that don't need cutting edge graphics cards.

 

[BILL1957]

Why would they do anything back in Novermber last year? The crypto crash didn't happen until earlier this year. Also, telling AIBs to slow down wouldn't have helped Nvidia who has to order wafers 6+ months ahead of time for the next several months beyond that. By the time November 2021 came around, Nvidia likely already had ordered all of its wafers for 2022.

There was a big deal in the News back before last holiday season that EVGA was slacking off production on the 30 series for the remainder of the 4th quarter as they had already met or exceeded their current shipping obligations for that quarter and was saving inventory for obligations for the following quarters.
A lot of people were saying or asking was this just manipulation of stock levels to keep the prices artificially inflated due to the stock shortages/demand.
This could have a direct effect on remaining 30 series overstock issues today!

 

[spongiemaster]

I'm not sure why anyone would buy a 3090 Ti for $1150 or a 3080 Ti for $850 when the 40-series will give the same performance at half the price. These aren't deals yet.

Because you'll have to get pretty lucky to buy one near MSRP this year. MSRP is becoming more and more of a joke with each generation anyway. I'm not talking about the crypto bubble with Ampere either. Right from the start AIB boards had MSRP's $100 or more over Nvidia's MSRP. I'm not sure there was ever a 2080Ti that was listed for the announced AIB MSRP of $1000. FE was $1200, and that's where the AIB's started. 4060 is completely out of the question for this year, and I doubt we're going to see a 4070 this year beyond a ceremonial launch.

Your best bet for landing an ADA GPU this year is going to be a 4090 and those aren't going to come cheap. You're not going to see any ADA GPU for $425 any time soon. Waiting isn't always the best strategy, unless you just don't care when you get your new GPU.

 

[watzupken]

I find it very disturbing that the Newegg Shuffle continues to exist. So in short supply, they use this "Shuffle" to give you a chance to own a card (with strings attached usually, e.g. need to bundle with somethings), and in oversupply, use as a opportunity to buy it cheaper...

 

[watzupken]

The 40-series production contracts were likely locked into place during the pandemic shortage and mining boom. This is why I don't think Nvidia can push back the 40-series launch until next year. I think we will see the 4090, 4080, and 4070 before the Christmas shopping season.

I think this article is right about the need to reduce inventories. The 30-series is clogging up shelf space and warehouse inventories right now. The high-end is especially bad. Now that mining and scalping is out of the picture, PC GPUs are being forced to compete with their much more affordable console competitors -- who also happen to have a steady stream of new games.

I'm not sure why anyone would buy a 3090 Ti for $1150 or a 3080 Ti for $850 when the 40-series will give the same performance at half the price. These aren't deals yet.

I think it is not just that. Assuming that Nvidia wants to push the release mostly till next year, their competitors may not do the same. If AMD is on track to release their RDNA3 GPU this year and Nvidia don't, Nvidia will just lose out on sales.

As to prices, I agree it is still not the best given how late it is in the cycle. However historically, Nvidia generally don't cut prices significantly even with the release of newer GPUs. For example, GTX 1080 Ti was still costly after the release of RTX 2080 Ti. Likewise, RTX 2080 Ti remains costly even with the release of much cheaper RTX 3080. People were dumping RTX 2080 Ti on the cheap in the second hand market because of the ridiculously good value of the more powerful RTX 3080 10GB @ USD 699, but that was only for awhile before people realized that they can't get the GPU and there is a shortage. So while Jensen said that they need to revise prices, I do feel that we may not see significant cuts. If anything, it is more likely that AMD may be more generous when it comes to price cutting.

 

[mickrc3]

I find it very disturbing that the Newegg Shuffle continues to exist. So in short supply, they use this "Shuffle" to give you a chance to own a card (with strings attached usually, e.g. need to bundle with somethings), and in oversupply, use as a opportunity to buy it cheaper...

There have only been a couple of Shuffles since the end of May. One was only XBox and Playstation consoles and accessories. The most recent one had a mix of items with some GPUs, some P/S units, and some cases plus consoles. The GPUs offered were just slightly lower than those available on the regular website.

 

[UnCertainty08]

"Total revenue was down from $8.1 billion to $6.7 billion, a 19% quarterly decline, which gaming revenue plummeted from $2.04 billion to 3.64 billion. "

I think there is a typo in that sentence.