Friday, June 29th 2018

Due to Reduced Demand, Graphics Cards Prices to Decline 20% in July - NVIDIA Postponing Next Gen Launch?

DigiTimes, citing "sources from the upstream supply chain", is reporting an expected decrease in graphics card pricing for July. This move comes as a way for suppliers to reduce the inventory previously piled in expectation of continued demand from cryptocurrency miners and gamers in general. It's the economic system at work, with its strengths and weaknesses: now that demand has waned, somewhat speculative price increases of yore are being axed by suppliers to spur demand. This also acts as a countermeasure to an eventual flow of graphics cards from ceasing-to-be miners to the second-hand market, which would further place a negative stress on retailers' products.

Alongside this expected 20% retail price drop for graphics cards, revenue estimates for major semiconductor manufacturer TSMC and its partners is being revised towards lower than previously-projected values, as demand for graphics and ASIC chips is further reduced. DigiTimes' sources say that the worldwide graphics card market now has an inventory of several million units that is being found hard to move (perhaps because the products are already ancient in the usual hardware tech timeframes), and that Nvidia has around a million GPUs still pending logistical distribution. Almost as an afterthought, DigiTimes also adds that NVIDIA has decided to postpone launch of their next-gen products (both 12 nm and then, forcibly, 7 nm) until supply returns to safe levels.
Source: Digi Times
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67 Comments on Due to Reduced Demand, Graphics Cards Prices to Decline 20% in July - NVIDIA Postponing Next Gen Launch?

#1
gigantor21
It'll be nice seeing more genuine deals, rather than retailers calling MSRP a discount...but I'm still just gonna wait for the next gen cards at this point.
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#2
Caring1
So what usually happens is upstream prices drop, retailers pocket the extra profit and consumers still pay the same ridiculously high prices.
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#3
Litzner
This is completely their own fault. Riding high on the crypto-currency wave they milked the 10XX series for as long as they could since they were selling, leaving their primary customer base outdated hardware that should have been replaced months ago. I for one have been wanting to replace my 970 for a long time now, but there is not way in hell I am going to do that with a over priced 10XX card. I think most people like me are waiting for the long over due new series of cards to come out.
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#4
btarunr
Editor & Senior Moderator
Maybe it's a way to clear the Pascal inventory before next-gen, through "hunger-marketing." Pascal cards are currently selling at near-launch prices (~2 year old launch prices). A 20% discount won't make them cheap enough to choose over next-gen.
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#5
Krzych
There is always a major price cut before new gen launches. Maxwell got that before Pascal, one day Nvidia said price cut and right away all shops had to lower the prices. That was a major drop, from what I remember 980 Ti was brought down to 980 price in my country, that was a good ~30% discount. 980 and 970 got smaller discounts and lower-end cards didn't get any, as this market is stagnant since forever.

If you don't want to wait like 6+ months until new cards launch and are properly available with variety of models to choose from (especially this), then this may be a good time buy new GPU. Price/perf of heavily discounted last gen card shouldn't be much different from new card at MSRP, especially that MSRP is not going to be great if there is no competition on the market.

Time is a very important aspect and has it's price too, at least if you value your time, how long can you wait if you are serious.
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#6
kastriot
Why not 50%? you milked and milked, now give us something back :)
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#7
Eric3988
Looks like we better hurry up and wait because that inventory is not going to move fast even with that price reduction. If only AMD could take advantage of the delay...
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#8
rtwjunkie
PC Gaming Enthusiast
Litzner said:
leaving their primary customer base outdated hardware that should have been replaced months ago.
Wow, you’ve really had a lot to drink at the Mandatory Upgrade Koolaid Trough, huh?

Outdated hardware? :rolleyes: Should have been replaced months ago? :kookoo:

What exactly is outdated? Games are just not that advanced where your GPU that is 2 years old is “outdated”. If you were rockin’ an 8800 GTS from 2006, or even a Fermi, I could understand your concern. But really?

Don’t be so dramatic, and don’t let yourself get sucked into the con they pull to separate you from your hard-earned money.
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#9
dirtyferret
but but but this runs contrary to Nvidia stating "Gamers come first for Nvidia. All activities around our GeForce products are for our core audience. We recommend our trading partners make arrangements to ensure that gamers’ needs are still met in the current climate. "
https://www.neowin.net/news/nvidia-wants-retailers-to-help-gamers-find-gpus-amid-cryptocurrency-craze

Why would a corporation simply choose profit over their "core audience"???:rolleyes:

rtwjunkie said:
. If you were rockin’ an 8800 GTS from 2006, or even a Fermi, I could understand your concern. But really?
I'm rocking the 640mb version of the card so I'm future proofed :D
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#10
TheinsanegamerN
If they want to get rid of supply, then they should drop the price on their now more then 2 year old GPUs. Ain't nobody going to pay launch MSRP for a 2 year old card that has a successor already being prepared for launch.
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#11
TheGuruStud
Eric3988 said:
Looks like we better hurry up and wait because that inventory is not going to move fast even with that price reduction. If only AMD could take advantage of the delay...
Good thing Samsung and Hynix lied through their teeth. We're going on 1.5 yrs of poor HBM production since it was promised.
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#12
Ahhzz
*sigh* I'm just waiting for a true "Future Proof" replacement for my Sapphire 290. I've not tried any of the newest games, mainly because none of them really strike mu fancy. But, for everything I've been playing, stuff like Bioshock and Black Desert, it still holds me up ok. I'm looking for that type of "Future Proofing" :)
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#13
Gasaraki
All these stupid articles about over supply and companies and people freakin out. It's likely everyone says, it's all the card manufacturer's fault BUT it's really easy to fix.

It's called supply and demand pricing. If the supply is too high and demand is low, you drop prices. I'm still seeing 1080s and 1080Ti's above MSRP. Why? It's been two years. If the card makers (ASUS, Gigabyte, MSI, EVGA, Zotac, etc) are going to be greedy then it's their own damn fault. You really think people won't buy 1080s and 1080Ti's if the price drops to $400 and $500? They will make less profit sure, but they will still be making money.
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#14
trparky
Gasaraki said:
They will make less profit sure, but they will still be making money.
A little money is better than no money at all. That's what these companies need to get through their thick neutronium lined skulls.
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#15
bug
Yeah, well, we've been stuck with the same cards for two years now. Whoever wanted to upgrade did so a long time ago. I expect at this point only those building new systems are buying.
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#16
trparky
bug said:
Whoever wanted to upgrade did so a long time ago.
Hey, speak for yourself. If I can score a 1080Ti at a decent price (like <$400) and not the bank account busting prices that we have now, I might just buy it.

I know... keep dreaming. :rolleyes:
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#17
bug
trparky said:
Hey, speak for yourself. If I can score a 1080Ti at a decent price (like <$400) and not the bank account busting prices that we have now, I might just buy it.
Can you?
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#18
trparky
Definitely not now, 1080Ti's are still close to $1000 state side. If they come down to less than $400 then yeah, I'll buy it.

Hey, one can dream. :rolleyes:
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#19
Ahhzz
I'm absolutely not spending more than $300 on a solid card, and definitely not one of these re-badged older cards with new stickers.
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#21
trparky
Loosenut said:
1080 Ti are available at the Nvidia store at MSRP $699 usd
WOW! Am I reading this right? They're actually in stock? A couple of months ago you couldn't get your hands on a card there at nVidia's store even if you prayed to your deity of choice.
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#22
ppn
1080Ti will be slower than 1160 (299$) pretty much the same way 780Ti (TITAN 6GB) is slower than 1060 6GB. Still going to buy 1080Ti at 559$ with discount.
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#23
Dr_b_
rtwjunkie said:
Wow, you’ve really had a lot to drink at the Mandatory Upgrade Koolaif Trough, huh?

Outdated hardware? :rolleyes: Should have been replaced months ago? :kookoo:

Don’t be so dramatic, and don’t let yourself get sucked into the con they pull to separate you from your hard-earned money.
Pascal is outdated, they have new arch likely ready to go, and possibly delaying its release due to inventory concerns. Real performance improvements, real power improvements ,real features improvements, these things are not a con.

rtwjunkie said:
What exactly is outdated? Games are just not that advanced where your GPU that is 2 years old is “outdated”. If you were rockin’ an 8800 GTS from 2006, or even a Fermi, I could understand your concern. But really?
Maybe he wants to run @4K or Widescreen res and get better frame rates. No card out now is doing great at that. If all you are saying is that you can get by with current generation hardware, then that's fine, but some people like to be running new tech, its called being an "enthusiast". Also it's not your money.
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#24
rtwjunkie
PC Gaming Enthusiast
Dr_b_ said:
Pascal is outdated, they have new arch likely ready to go, and possibly delaying its release due to inventory concerns. Real performance improvements, real power improvements ,real features improvements, these things are not a con.



Maybe he wants to run @4K or Widescreen res and get better frame rates. No card out now is doing great at that. If all you are saying is that you can get by with current generation hardware, then that's fine, but some people like to be running new tech, its called being an "enthusiast". Also it's not your money.
Perhaps you have not been paying attention, but current line far outdistances games. Hardware tech is so far beyond it is ridiculous....except for one area which you mentioned: 4K.

4K is a white whale. For constant 60fps or more (maybe even the hoped for 144) at maximum details it won’t happen for all games. Every generation many of us enthusiasts hope the next flagship can do that. So far, no card can do that. Nor do I expect any system single card to get there for awhile, because game tech only has to inch forward slightly to keep new games out of that grasp.

I’m an enthusiast too. I’m also a fully grown adult fast approaching retirement, so every dollar counts. This is why I can look at these things without drinking the “you must buy the very newest card all the time” koolaid.
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#25
trparky
rtwjunkie said:
I’m an enthusiast too.
Me too, but I also don't have a completely disposable income. I have to budget a lot of things. My last build was with a GTX1060, that's literally all that I could afford at the time (combined with the price of all the other parts in the build).

Yes, I'm not denying that I would love better performance. Can I afford it? Nope. So I have to learn to make due, much like you @rtwjunkie .
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