Tuesday, June 17th 2014

Graphics Card Shipments to Drop Drastically in Q2 2014

Graphics card vendors are bracing for a brutal spell for Q2, 2014, in which they expect sales to sequentially drop by 30 to 40 percent. They are attributing this to swelling inventories (unsold graphics cards) lower down the supply chain. The drop in graphics card sales, for the first time, is being attributed to a drop in the demand for GPUs by crypto-currency miners, who are either moving on to more energy-efficient mining technologies, such as ASICs, or quitting the business, following the drop in value of various major crypto-currencies, such as Bitcoin. These miners end up selling high-end graphics cards at attractive prices on marketspace websites such as Ebay, affecting brand-new high-end graphics card sales. Graphics card vendors (AIB and AIC partners), have asked GPU manufacturers AMD and NVIDIA, to help them cut prices to boost sales, however, both have cut down supplies, to deal with the situation, instead. Swelling inventories often translate into price-cuts for the end users, so be on the look out.

Source: DigiTimes
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51 Comments on Graphics Card Shipments to Drop Drastically in Q2 2014

#1
arbiter
Since hasn't been any new on gpu front in 2+ years people are just sticking with what they got.

"is being attributed to a drop in the demand for GPUs by crypto-currency miners"

that would hit AMD more then it would Nvidia.
Posted on Reply
#2
RejZoR
Rehashing old architectures with tiny performance bumps aren't helping sell more stuff... Also the insane inability to make common standards for gaming makes things even worse. It's preposterous that they failed to create a physics standard for hardware accelerated physics in all these years. Games could make insane leaps in interactivity with HW physics being standard, surpassing consoles on that front entirely due to better precision with mice. Instead, it's year 2014 and we still run the same shitty physics we had back in 2001 on CPU. It's just idiotiq. PhysX is useless because it's NVIDIA only and especially since it's not widely used standard tech, they can only use it for gimmicky visual stuff, but they can't use it for core gameplay, because those games just wouldn't even work for half the users then.
Posted on Reply
#3
mrwizard200
This seems rather normal to me. Sales were sky high during the cryptocurrency time period and are now stabilizing. Had there been no surge in crypto, then sales would have been normal with no spikes.
Posted on Reply
#4
RCoon
Gaming Moderator
When all you offer in terms of ACTUAL new GPU cores is something that runs on a nuclear reactor for power, or a GPU that costs in excess of $1000, no shit are your sales going to drop. AMD got shanked by crypto miners, and now the market is collapsing on itself because lo-and behold bitcoins aint worth as much as they were, and NVidia are still price gouging their customers.

I was looking on ebay at the 290X and the 780ti's, and right now I see no discernible reason to buy NVidia. The 290X's are going cheap as chips, and are within percentage points of 780ti performance. NVidia need to swallow their elitist attitude and cut prices for once, and AMD just plain need to keep going clearing stock.

Once that's done, the two asshats need to actually bring an entirely new generation of GPU's to the market, that have actual performance increase and a whole new archi, instead of relabelling GK104
Posted on Reply
#5
brunello
RejZoR said:
Also the insane inability to make common standards for gaming makes things even worse. It's preposterous that they failed to create a physics standard for hardware accelerated physics in all these years. Games could make insane leaps in interactivity with HW physics being standard, surpassing consoles on that front entirely due to better precision with mice. Instead, it's year 2014 and we still run the same shitty physics we had back in 2001 on CPU. It's just idiotiq. PhysX is useless because it's NVIDIA only and especially since it's not widely used standard tech, they can only use it for gimmicky visual stuff, but they can't use it for core gameplay, because those games just wouldn't even work for half the users then.
this

I think that hardware wise we have pretty much all the power we need, think about how good games looks on a PS4 which is has a fraction of raw power of an high end pc.
Now it's time to improve software optimization and finally create some common standards, I thought that with the next-gen been x86 based something would have been changed...
Posted on Reply
#6
The Quim Reaper
RCoon said:

NVidia need to swallow their elitist attitude and cut prices for once
Whilst I agree that Nvidia overcharges (always have done) for their GPU's, the software suite that comes with their cards is rather good, far superior to AMD, and this is from someone who has just swapped to Nvidia after nearly 8yrs of ATI/AMD use.

Stuff like Shadowplay is simply awesome, inbuilt driver support for GPU downsampling, much better in game Vsync compatibility, higher quality Anti-Aliasing modes and their OpenGL support and performance, especially in older games is still much better.

So yes, it's a premium price, but it's not for nothing....
Posted on Reply
#7
john_
When the mining madness started and AMD's card prices sky rocketed(in US), many hardware sites where saying that when people where going to start selling the cards on eBay that would be only AMD's problem. From the article is obvious that both AMD and Nvidia are seeing a huge drop in card shipments. So all those who where saying that "AMD selling a truckload of cards was going to be a problem for.... AMD" it seems that they where wrong. Who could imagine that lol.
Posted on Reply
#8
RCoon
Gaming Moderator
The Quim Reaper said:
Whilst I agree that Nvidia overcharges (always have done) for their GPU's, the software suite that comes with their cards is rather good, far superior to AMD, and this is from someone who has just swapped to Nvidia after nearly 8yrs of ATI/AMD use.

Stuff like Shadowplay is simply awesome, inbuilt driver support for GPU downsampling, much better in game Vsync compatibility, higher quality Anti-Aliasing modes and their OpenGL support and performance, especially in older games is still much better.

So yes, it's a premium price, but it's not for nothing....
I'd rather not pay an extra £100 for NVENC packaged inside of software(because I can already use it), and something that changes game settings for me.
I hate both GFE and CCC, I have neutral hatred for drivers from both. Plus AMD offer their own version of shadowplay anyway, not that I've tried it. I switched from AMD during their crossfire-sucks period to NVidia, and pretty much avoid software from both parties.
I understand you find their software useful (I used shadowplay a fair bit too, but it simply sucks compared to OBS or FRAPS), but the price simply does not justify it. I pay for a GPU, and a GPU only, not some software that implements things already available to me.

The Quim Reaper said:
much better in game Vsync compatibility
That doesn't exist. Unless you're talking about GSync, which requires a copiously expensive monitor, or a £100 add-on board for existing Asus monitors. Not really a reason why their GPU's cost more, especially when it's another closed garden idea.
Posted on Reply
#9
Serpent of Darkness
arbiter said:
that would hit AMD more then it would Nvidia.
Please look at the following:

btarunr said:
Graphics card vendors are bracing for a brutal spell for Q2, 2014, in which they expect sales to sequentially drop by 30 to 40 percent. They are attributing this to swelling inventories (unsold graphics cards) lower down the supply chain. The drop in graphics card sales, for the first time, is being attributed to a drop in the demand for GPUs by crypto-currency miners, who are either moving on to more energy-efficient mining technologies, such as ASICs, or quitting the business, following the drop in value of various major crypto-currencies, such as Bitcoin.
On a macro level, AMD already made revenue returns from vendors replenishing their stocks (AMD products relating to graphic cards). So goods sold was already a profit gain in the past for AMD. Now, currently, sales of AMD cards are probably not as demanding as they use to be. So those "vendors" are not going to see sales go up anymore because the value of AMD cards are still in high demand, and retain a decent value under the retail price for a new unit. Translation: People are still having demands for AMD Graphic Cards, and they can get a better deal if they bought 2nd-hand units from a Crypto-Pharmer, and AMD won't make additional revenue from those purchases. Btarunr, I guess being a "whistle-blower" that Crypto-pharming is super-serious bad, and it's turns straights into gays--is his way of pandering to a certain group that doesn't like AMD selling to many graphic cards to said crypto-pharmers. Coming from his last "QQ-post/rant" in the past about it, it raises the prices of AMD cards, and as a result, it gives NVidia the notion to go on a cocaine-fueled endeavour to slap a high price tag on an up-coming Graphic Card. I.e. GTX Titan-Z was selling for under around the $3,000.00 on Newegg.com. Point being made in the past, by Btarunr, was that Crypto-pharmers consumed more cards for hash-plowing power, and thus drove the prices up because demand was going up more than par expectations. Translation, Btarunr and others aren't happy when AMD Card Prices were going up, and they are stuck on a budget. So they couldn't purchase new AMD toys because they were counting their pennies... This seems down to Earth as a scenario.

Bottom line, Btarunr's first sentence said it all: "Graphic card vendors are bracing for a brutal spell for Q2 2014, in which they expect sales to sequentially drop by 30 to 40 percent." The rest is all bias rhetoric. This is typically normal before a new generation is about to be release. Pre-Maxwell and AMD R9-300 are possibly going to see high sales in Q3 and Q4 2014... Anybody who argues against this is redundantly ignorant: Christmas is probably the best time in the year to boost the highest revenue returns...

@btarunr

nice R9-290 from MSI. I've only now noticed you've got one... :D
Posted on Reply
#10
RCoon
Gaming Moderator
Serpent of Darkness said:
Please look at the following:



On a macro level, AMD already made revenue returns from vendors replenishing their stocks (AMD products relating to graphic cards). So goods sold was already a profit gain in the past for AMD. Now, currently, sales of AMD cards are probably not as demanding as they use to be. So those "vendors" are not going to see sales go up anymore because the value of AMD cards are still in high demand, and retain a decent value under the retail price for a new unit. Translation: People are still having demands for AMD Graphic Cards, and they can get a better deal if they bought 2nd-hand units from a Crypto-Pharmer, and AMD won't make additional revenue from those purchases. Btarunr, I guess being a "whistle-blower" that Crypto-pharming is super-serious bad, and it's turns straights into gays--is his way of pandering to a certain group that doesn't like AMD selling to many graphic cards to said crypto-pharmers. Coming from his last "QQ-post/rant" in the past about it, it raises the prices of AMD cards, and as a result, it gives NVidia the notion to go on a cocaine-fueled endeavour to slap a high price tag on an up-coming Graphic Card. I.e. GTX Titan-Z was selling for under around the $3,000.00 on Newegg.com. Point being made in the past, by Btarunr, was that Crypto-pharmers consumed more cards for hash-plowing power, and thus drove the prices up because demand was going up more than par expectations. Translation, Btarunr and others aren't happy when AMD Card Prices were going up, and they are stuck on a budget. So they couldn't purchase new AMD toys because they were counting their pennies... This seems down to Earth as a scenario.

Bottom line, Btarunr's first sentence said it all: "Graphic card vendors are bracing for a brutal spell for Q2 2014, in which they expect sales to sequentially drop by 30 to 40 percent." The rest is all bias rhetoric. This is typically normal before a new generation is about to be release. Pre-Maxwell and AMD R9-300 are possibly going to see high sales in Q3 and Q4 2014... Anybody who argues against this is redundantly ignorant: Christmas is probably the best time in the year to boost the highest revenue returns...

@btarunr

nice R9-290 from MSI. I've only now noticed you've got one... :D
I don't understand why you spelled farming wrong on purpose. That's all I got from that WoT.
Posted on Reply
#11
THE_EGG
I'm not surprised with poor numbers of graphics card shipments. There hasn't really been anything new released in this quarter that caters for the mass market (mass market relatively speaking that is). The 295x2 and TITAN Z are just too damn expensive for most people.

The Quim Reaper said:
Whilst I agree that Nvidia overcharges (always have done) for their GPU's, the software suite that comes with their cards is rather good, far superior to AMD, and this is from someone who has just swapped to Nvidia after nearly 8yrs of ATI/AMD use.

Stuff like Shadowplay is simply awesome, inbuilt driver support for GPU downsampling, much better in game Vsync compatibility, higher quality Anti-Aliasing modes and their OpenGL support and performance, especially in older games is still much better.

So yes, it's a premium price, but it's not for nothing....
Unfortunately for me, Shadowplay has never worked properly. It doesn't matter what I try it just never works the way it should. The audio always cuts in or out in recordings and is not in sync with the picture. I just record on MSI Afterburner and delete anything I don't need/want. Scaling is FAR better on AMD (at least in my experience with it). You also get Mantle support and better audio on some cards. But then you get G-sync support with Nvidia, CUDA and many other things. All this being said, I have had a more stable experience with Nvidia cards and certainly many less RMAs of Nvidia cards than AMD cards (I've had to RMA all 3 R9 280xs I had and have since sold them when I got them back from repair/replacement). Not wanting to start a war between AMD and Nvidia fanboys, just stating what I've experienced.
Posted on Reply
#12
bogami
To drop prices and sales will normalize it as it is when you're greedy...However, people who buy good are reasonably well informed and know what the correct value.
Manufacturer as nVidia GPU and individual manufacturers (ASUS, MSI, Gigabayte ...) wanted too much profit, and the results are visible. Ddrivers are not be able to arrange let alone announced deadlines for new products. HYA cheaper TITAN -Z By Max Clock version at $ 600 and all supplies will run out ..... greedy fuckers !
Posted on Reply
#13
Xzibit
The Quim Reaper said:
Whilst I agree that Nvidia overcharges (always have done) for their GPU's, the software suite that comes with their cards is rather good, far superior to AMD, and this is from someone who has just swapped to Nvidia after nearly 8yrs of ATI/AMD use.

Stuff like Shadowplay is simply awesome, inbuilt driver support for GPU downsampling, much better in game Vsync compatibility, higher quality Anti-Aliasing modes and their OpenGL support and performance, especially in older games is still much better.

So yes, it's a premium price, but it's not for nothing....
That doesn't make sense because it insinuates there is an additional cost to every card due to the software. If you buy more then one card you'll be paying for the software every time.

You can download the software without needing to purchase a card.
Posted on Reply
#14
THE_EGG
IMO software and the like should just be a selling point for a card. Not something that should be charged extra for.
Posted on Reply
#15
GreiverBlade
oh drat, i knew i should have wait, instead of buying a 290 at the price of a 750Ti on 2nd hand market, well ASICs miner are quite common in switzerland (mostly because of electricity) so i guess now that the phenomenon is getting a bit more "world wide" we should expect some nice price drop.

no news on GPU in the last 2+ yrs? eh? Hawaii is from end 2013 right ? we are already in 2015? daaaamn i shouldn't have sleep so much. (oh wait you just say they are still based on a old tech... well yep i rather see a new GPU with Photonics interconect instead of copper for the next gen ... wait what? nevermind i said nothing)


The Quim Reaper said:
Whilst I agree that Nvidia overcharges (always have done) for their GPU's, the software suite that comes with their cards is rather good, far superior to AMD, and this is from someone who has just swapped to Nvidia after nearly 8yrs of ATI/AMD use.

Stuff like Shadowplay is simply awesome, inbuilt driver support for GPU downsampling, much better in game Vsync compatibility, higher quality Anti-Aliasing modes and their OpenGL support and performance, especially in older games is still much better.

So yes, it's a premium price, but it's not for nothing....
well not true ... i rarely have drivers problem and i used a mix of nV and AMD cards lately, yet a R9 290 is not far behind a Titan or a 780 (okok not black not Ti but also they are not far behind the fully unlocked too ) and cost way less, yet imho that premium you said "not for nothing" in the end is "for nothing"
Posted on Reply
#16
erixx
Present games look really good. (GPU are basicly for gaming, right, or...?!)
Resolution and definition have reached very high levels (some push for 4K, but really less is enough for most.)
Extra gimmicks, like 3D, Blueray, etc, have proved to be failed shots.

So, in one word, we are SET. Money is going elsewhere, like house, traveling, dentists...

This is like computers. After everybody or every home has one or more, you should not wonder that sales decline.

And... they should have really filed lawsuites against iGPU in the beginning :):):)
Posted on Reply
#17
ZoneDymo
So much ignorance going on, but then, what is new right?
Posted on Reply
#18
buildzoid
Xzibit said:
That doesn't make sense because it insinuates there is an additional cost to every card due to the software. If you buy more then one card you'll be paying for the software every time.

You can download the software without needing to purchase a card.
Where do you think Nvidia gets the money to develop that software?
Posted on Reply
#19
RCoon
Gaming Moderator
buildzoid said:
Where do you think Nvidia gets the money to develop that software?
PhysX licensing or something? :laugh:

EDIT: Maybe Titan and Titan Black sales pay for NVidia's years worth of software R&D.
Posted on Reply
#20
buildzoid
RCoon said:
PhysX licensing or something? :laugh:

EDIT: Maybe Titan and Titan Black sales pay for NVidia's years worth of software R&D.
last I checked Nvidia pays developers to get them to use PhysX.
Posted on Reply
#21
RCoon
Gaming Moderator
buildzoid said:
last I checked Nvidia pays developers to get them to use PhysX.
Yeah I know, it was a joke
Posted on Reply
#22
techy1
why would someone upgraide their GPu if they have like old HD 5870 or GTX 470 - cuz everything runs maxed out (more or less) on 1080 @60 with those old things! but if you want to buy something new and special - like 4K @60 or maybe 1440 @120 - well then even a newest top cards in triple sli/crossfire configurations is to short for that !!! now I understand why UHD is called "4K"... cuz even a 4k $$$ is not enough for that system :D. anyway - if a monitor 1080@60 from 2009 (and market gives me no other reasonable options) then a GPU from 2009 is good as well!!
Posted on Reply
#23
john_
buildzoid said:
Where do you think Nvidia gets the money to develop that software?
Who cares? No one asked them to create that software. Not to mention that while they sell you the software, if you have a primary card from another manufacturer they forbid the use of the software that they just sold you.
Anyway extra software should be considered as an extra bonus bundle or something optional that you can buy later online. NOT as part in the cards price. If you go into a store to buy milk and only milk, you are not going to like it if the milk's price is 15% higher because it comes with "free" cookies.
Posted on Reply
#24
buildzoid
john_ said:
Who cares? No one asked them to create that software. Not to mention that while they sell you the software, if you have a primary card from another manufacturer they forbid the use of the software that they just sold you.
Anyway extra software should be considered as an extra bonus bundle or something optional that you can buy later online. NOT as part in the cards price. If you go into a store to buy milk and only milk, you are not going to like it if the milk's price is 15% higher because it comes with "free" cookies.
The development of the software is paid from GPU sales therefore regardless of whether you use the software or not the price gets added to the price of every GPU you buy.
Posted on Reply
#25
Prima.Vera
Oh goody! Look, I have a crocodile tear in my left eye... sob sob..
Good for them. Maybe they will go back to 2009 prices if they will have unsold cards...
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