Wednesday, July 16th 2008

ATI (AMD) and NVIDIA Fix Prices in the US, Class Action Slapped Against them

Class actions charged against NVIDIA and ATI (now AMD) reveal that the two companies may have staged a competition over the past half-a-decade or so. A judge read out an email which suggested price fixing was rife in the graphics card market. That follows a class action of 51 different plaintiffs, now combined into one, and across different legal jurisdictions, alleging cartel behaviour not only in graphics chips, but flat panels and CRTs too.

In other words, NVIDIA and ATI may have been fixing prices of their products for a while now, it is believed that they held secret meetings to discuss staged competition, chart out prices, timings of product launches among other things. These pseudo-competitions staged provided improved sales among other things. A PDF File available to us at this point shows that the two indulged in conspiracy to mutually benefit from staged competition, so as to:

  • Fix, stabilize, and maintain prices of products in the US Market.
  • Artificial inflation of product prices.
Provided, are charts that show price-spread between NVIDIA and ATI products. Three major time-scales: Before the 'conspiracy period', during and after a federal grand jury launched an investigation and issued subpoenas to both companies:

Of course, the latest price-cut of NVIDIA GeForce GTX 200 series products doesn't seem to have been taken into account, the price spread between NVIDIA and ATI with their highest-offerings is zero.Sources: IT Examiner, Law.com
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98 Comments on ATI (AMD) and NVIDIA Fix Prices in the US, Class Action Slapped Against them

#1
panchoman
Sold my stars!
wow it makes sense.. this why nvidia and ati always seem to pop out new products out of the blue to go head on with the other.. and would explain by nvidia and amd are "buddying" when it comes to the cuda and physx, and why they haven't had any suits against each other, dispite all of the bad stuff each of them have done to each other.
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#2
Megasty
We all know what was going on in 2003. Just how many $500 cards we released in that year. I lost count after 5 by each company. That seemed to go on forever, until the 8 series NV cards broke it open & AMD when back to the drawing board. At some point they can't call it competition anymore. Its definitely competition now but what was going on back then was pretty damn apparent. This is what happens when one co tries to break the manotony.
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#3
tkpenalty
Nvidia to AMD; AMD to Nvidia "We hate each other"


-both hug each other warmly-


I had a hitch something like this was going on.



Nvidia... is so screwed. Now watch GTX280 prices skyrocket.
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#4
wiak
if they didnt co-operate they whould have been in "MAD aka Mutual assured destruction" about now :toast:
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#5
ghost101
I bet AMD are pissed because now theyll look like hypocrites.
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#6
chron
i knew there was something fishy about a 650 dollar video card!
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#7
ShadowFold
Wait so they have been working together :wtf: am I reading that right?
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#8
btarunr
Editor & Senior Moderator
by: ShadowFold
Wait so they have been working together :wtf: am I reading that right?
to get the most out of your wallet, yeah.
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#9
chron
by: ShadowFold
Wait so they have been working together :wtf: am I reading that right?
Think about it: Two big companies with no main competitors other than each other get together and figure out a way to bring in the most cash. Obviously the most blunt way would be raising the price of their products. Usually when the price of a product goes up it's because of a few reasons: Manufacturing cost, and availability. Here, they were simply raising the price for no reason other than maximum return.

If this is all true, we've all basically been getting reemed with no lube for a very long time.
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#10
Megasty
I thought it was obvious. They just started to throw rocks at each other again when NV broke the mold with the 8 series. AMD couldn't keep up anymore so all bets were off. Between 2002 & 2007, the price difference between those 2 idiots' high-end model was nil.

There was none of this I come out with a $800 card that reigns for a year which gets eaten by a $450 card just to be trumped by a $600 card which is upgraded to a $650 card which is utterly destroyed by a $500 card.

Life sucks AMD & NV doesn't it. They would have probably never found out if the 2 idiots didn't start to fight like cats & dogs.
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#11
Baum
let's wait what turn's out to be true.

and isn't it normal that they try to cooperate to keep prices high? every industry trys to, even if it is illegal:rolleyes:

only thing i'm worried about is that they form more a monopole on GPU's like intel and AMD.
2 is not enought for a sector, but i won't buy any other as there's no better one?

remember the day's where you could choose between cyrix intel amd ect. ? like Ati Nvidia 3dfx.
3 and up are good, less is just bad :slap:
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#12
zOaib
MAN !!! i feel used .......
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#13
ShadowFold
I think we need another GPU manu. so we can have more competition, cheaper prices and more fanboy flamewars(cause I think there funny :D)
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#15
KieranD
yeah they go back and fourth in the war you have the top card next time i can have the top card

a mid range card comes out then another better mid range card comes out by the other

its silly i bet the whole 3000 series and 9000 series is a sham and they couldve done that to start with

i mean didnt you notice how close it was back when you had the x1000 series and the 7000 series

the whole 6 series and x800 cards were a sham too not much in it

i bet the it all started with the 9800 radeon i mean that was a pricey beast
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#16
Megasty
I hope Larrabee breaks this stuff up. Its OK now, since both companies are feeling the effects of their own BS but it could go back to it at anytime. They are already bitching about the CUDA stuff - That means they are actually talking to each other :eek: Its headed that way again, where we see another set of 5 $500 cards <-- arbitrary number, that are not worth it.

If this doesn't go down, the G300 & R800 could very well be the same price at launch. That's when we know they are doing it again, especially when NV is keeping a track on AMD's prices. It probably happened that way at first, but continuing it for 5 yrs is unforgivable. The FXs were not worth it at all & the prices for the 2900s made me sick.
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#17
phanbuey
by: [I.R.A]_FBi
S3? ftw?
:laugh:

lol... just in time for intel and its larrabee.

I thought the 2900's were a bit cheap to be honest, maybe not for the performance tho. It all makes sense now. Watch these two gang up on intel.
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#18
laszlo
nothing new the same is in oil branch and who's sue the few big supplier?nobody even they recognize that the price is not normal they're selling double why not if are buyers and this can be extended to almost any product

if anyone made a product before sell 1st he made a market/price research to adjust his price and if the market can hold a 100% win (based on a similar but not identical product) i bet he wouldn't sell it with a 30% margin;people don't know the manufacturing cost for this reason
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#19
FreedomEclipse
~Technological Technocrat~
by: ShadowFold
I think we need another GPU manu. so we can have more competition, cheaper prices and more fanboy flamewars(cause I think there funny :D)
someone call up matrox & tell them how much the enthusiast market is missing them. Matrox have long since confined themselves to a box we call 'industry' - they need to take up arms & come out with a pincer move against ATi/Nv to show the world their absence has not been for nothing....

either that or one of the 3rd party companies like HiS & XFX, GeCube etc etc need to step out & start makin their own graphics cards.....
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#20
turtile
In theory, wouldn't this mean that Intel and AMD also conspired with their Extreme and FX editions?
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#21
spectre440
by: zOaib
MAN !!! i feel used .......
me too...
this sucks...
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#22
Megasty
by: phanbuey
:laugh:

lol... just in time for intel and its larrabee.

I thought the 2900's were a bit cheap to be honest, maybe not for the performance tho. It all makes sense now. Watch these two gang up on intel.
They were cheap, when they were compared to the 8 series. Who knew they had that GTX up their sleeves when the 7900s ended up bombing with a dual disaster. This is when the pricing BS ended. But NV ended up going into another universe of prices with the 8 series. The performance over anything else may have warranted it but I know I didn't like it one bit. It only took 2 generations for AMD to catch up, but now since they did it could easily go back.

Both companies need to price there cards according to what they will do (& how much we will pay for them). Having them locked-in w/o that real value only leaves the customer hanging out to dry. These relatively high NV prices over the last 3 yrs may have put us out of perspective of what these things should cost.
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#23

i dont care if they staged the prices or not, as long as they brought products like 8800 gt for $200 or a little more and HD4850 for $150 .
#24
Champ
So, all the competition is staged? Sounds more like the WWE to me. They have have been doing it for so long. no need to stop them now.
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#25
ShadowFold
by: wolf2009
i dont care if they staged the prices or not, as long as they brought products like 8800 gt for $200 or a little more and HD4850 for $150 .
I agree. The prices are great right now and they have been for the past year. Last year it would have cost me 4x as much to max the newest games.
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