Friday, December 8th 2006

NVIDIA, AMD and ATI accused of fixing prices

According to the Inquirer, NVIDIA, ATI and AMD could be in trouble for apparently conspiring to keep prices high. Allegedly executives of the companies have met to discuss the price of graphics processor units and therefore have received a summons by the Department of Justice, being asked to present data going back into the 1990s.

Although this is just an accusation and is yet to be proved, it is argued that the price of new graphics cards is always around $500 for the top models which could be down to price fixing. Given the competition that appears on the surface between the companies (well ATI and NVIDIA) this would come as a surprise, but we'll have to wait and see what happens.Source: The Inquirer
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18 Comments on NVIDIA, AMD and ATI accused of fixing prices

#1
EastCoasthandle
Wow look at the price of their x1800xt
Is it possible that the inq. info is accurate this round?
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#2
Alcpone
I totally agree they price fix, I think it is in everyone's best interests if they halve them as of tomorrow! lol
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#3
ATIonion
this could be good ....this could be bad thing.....

if they have to lower prices, then could that mean lower quality for later generations?

i thought i read something awhile back that retail price is increased 85% from cost of manufacturing...i doubt that includes research and development costs tho...but $50 high end video cards would be awsome...:D

it will be interesting to see if either side was conspiring together on prices...but i imagen that this could take years to settle...
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#4
EastCoasthandle
Well it looks like the finger pointing may begin very soon if true.
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#5
EviLZeD
does this mean i bought my card overpriced :(

yea and its possible we never know whats going on behind our backs
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#6
GLD
I would be happy as pie if high end cards launched at $300. I think $500+ is to high for a video card. A good mid range card can be had for around $200, the $300+ jump to a high end card is not justifiable in my book.
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#7
Bob The Fish
by: GLD
I would be happy as pie if high end cards launched at $300. I think $500+ is to high for a video card. A good mid range card can be had for around $200, the $300+ jump to a high end card is not justifiable in my book.
Agreed for I need 2 x1950XTs in corssfire and it will be expecnive so anything helps.
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#8
bornfree
Well the media as usual will have a field day but the bottomline is everyone will get their day in court. Personally I doubt ATI and Nvidia colluded to fix prices because they are arch rivals who do not like each other. The fact that they kept prices high by NOT discounting isn't any violation of law. The fact that numerous other companies used their chips and produced their own video cards (from the reference design) would pretty much substantiate that no price fixing actually existed unless you can prove extortion of the independents, which is highly unlikely.

As a biz manager for many years I can tell you that virtually all companies charge whatever the traffic will bear. See the price of crude oil as an example. As long as people pay $3 or more per gallon for gasoline, that is what will be charged. If people refuse to pay it the inventories increase and the price is lowered to move the surplus out. In the Vid card, Mobo, HD, memory or any other product free marketplace the price is what people will pay and as long as their is no conspiracy to fix prices or a cabal, then there is no violation of law.


The only reason many companies can get premium prices for their products is because the online shills hype the products until gullible sheep falsely believe they can't live without this product. Then they pay thru the nose for something they don't need but feel they can't live without. See the Xbox, Wii, Ipod, cellphone, PC, and a million other hyped products that almost no one needs, but many believe they can't live without.
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#9
EviLZeD
by: GLD
I would be happy as pie if high end cards launched at $300. I think $500+ is to high for a video card. A good mid range card can be had for around $200, the $300+ jump to a high end card is not justifiable in my book.
i agree too i mean 480 quid for a 8800gtx is alot of money and before we used to spend more money on processors than gpu now the best gpu is more expensive than alot of powerful processors
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#10
mout12
Yea they're overpriced. I spent 500 on my graphics card, and 400 on my xbox360
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#11
ghost101
by: ATIonion
this could be good ....this could be bad thing.....

if they have to lower prices, then could that mean lower quality for later generations?
Not if theyre price fixing. If they werent price fixing and thenm were forced to lower prices, then youd see a lowering in performance/quality or whatever else you want to call it.
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#12
tkpenalty
haha lol, both guys battling it out, then both get arrested
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#14
Casheti
Hopefully when I'm 18 I won't be spending anything on GPU's because by then I hope to have given up on PC's completely :D
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#15
Alcpone
by: Casheti
Hopefully when I'm 18 I won't be spending anything on GPU's because by then I hope to have given up on PC's completely :D
PC dedication for life is what you need! ;)
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#16
Casheti
They suck up too much money. Rather spend all that on something useful...
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#17
jocksteeluk
last time i bought a top range Graphics card was a ti4600 for £325 the first week the came out and i thought that was high but cards these days are costing silly money and i agree it is down to ATI and Nvidia, ATI raised the asking price for the cards and Nvidia has matched them so id say they are bang to rights so pays your fines you gready gready companies.
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#18
jimmylao
Solution = Find rate of inflation in electronics/computers. Adjust price of video cards with rate of inflation. (i.e. take records from 1995 (voodoo 3dgrafx, radeon 7xxx, nvidia geforce, whatever and adjust video cards accordingly to high-end/mid-range w/respect to inflation).
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