Wednesday, March 23rd 2022

NVIDIA: Gamers Spend $300 More on Ampere GPUs Than Previous Generations

NVIDIA at its Annual Investor Day announced that the company's coffers are in better shape than ever. And while the company has many baskets from which to pull proverbial profits, the company's gaming division remains its biggest source of income. On its presentation, NVIDIA clarified that gamers are spending on average $300 extra per desktop Ampere product compared to previous graphics product generations. That fact, the company says, has resulted in an average increase in product ASP (Average Selling Price) to the tune of 13% per year in the last five years.

Paired with the increase in graphics products' ASP (meaning NVIDIA brings in more money per sold graphics card) is an increase in the number of graphics cards shipped to customers - at a rate of 11% more graphics cards being sold annually. So NVIDIA is not only selling more expensive graphics cards; they're selling more of them as well. The company expects its financial results to keep steadily improving, even as more and more gamers join the fold. According to the company, the last five-year period saw an average of 50 million additional gamers entering the market per year - and there's no expectation of that figure slowing down.
While higher graphics card pricing is (clearly) good news for both NVIDIA and its investors, the same cannot be said for the consumers that are buying these graphics cards. After more than a year with a severe drought on the graphics card distribution channel and prices that saw a 300% cost increase over MSRP, it doesn't come as a surprise that gamers are paying more for Ampere (let's call it an Ampere tax) than for previous-generation products. However, it's highly unlikely that the average consumer would consider that as much of a boon as NVIDIA does.
Source: NVIDIA
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55 Comments on NVIDIA: Gamers Spend $300 More on Ampere GPUs Than Previous Generations

#51
20mmrain
harm9963I don't mind spending for MFSRP ,but not over , so my 1080Ti lives on
I'm in the same boat! I so badly want to upgrade, but my Skylake CPU and GTX 1070ti FTW still plays everything at Max Settings.
So really all Nvidia and AMD are accomplishing is stopping their base customers (like me) from buying new.

And that might be ok for right now while they are making money hand over fist because of mining. But one day, a better technology will come out for mining that will trump video cards.
At that point, will Nvidia and AMD have anyone left to fall back on? Possibly not! (A part of me hopes not to teach them a lesson)
Posted on Reply
#52
AusWolf
It's easy to blame scalpers, miners, or even nvidia itself for the high prices, but the article says it all: "Gamers spend $300 more..." The point is: if common people are happy to spend that money, then how is everybody else at fault?
Posted on Reply
#53
ThrashZone
Hi,
Doubt anyone was happy about spending more and if they were they are silly :laugh:

Except for gpu manufactures they were trilled people were overspending for gpu's
Posted on Reply
#54
TheoneandonlyMrK
AusWolfIt's easy to blame scalpers, miners, or even nvidia itself for the high prices, but the article says it all: "Gamers spend $300 more..." The point is: if common people are happy to spend that money, then how is everybody else at fault?
I mean it's Nvidia saying so , they wouldn't missrepresent would they :p

If they throw a stone it wouldn't distract me.
Posted on Reply
#55
AusWolf
ThrashZoneHi,
Doubt anyone was happy about spending more and if they were they are silly :laugh:

Except for gpu manufactures they were trilled people were overspending for gpu's
My point is: it doesn't matter how much people complain about the increased prices as long as they pay. ;) It's like complaining about politics from in front of the TV. It doesn't change anything.
TheoneandonlyMrKI mean it's Nvidia saying so , they wouldn't missrepresent would they :p

If they throw a stone it wouldn't distract me.
True.
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