| Stinky said: No, I indicated that the bells and whistles of a top-end GPU aren't conducive to a competitive console price. Even taking the unlikely markup you've described, $200 for GPU doesn't leave much budget for the rest of the system and profit, and I don't think anyone's hoping to ship a $599 console again. Nevertheless, your breakdown doesn't include the key component: the price of GDDR5. |
Of course it does. Look at the chart again:
$32.35 for 1.5GB of GDDR5 is a part of the $210 price for GTX580 kit. $56.77 for 2GB of GDDR5 is a part of the $189.35 price for HD6970 kit. The prices at which these components are sold already include AMD/NV's profit margins. Everything from this point involves only AIBs/retailers mark-ups. That's what you see in retail. In other words, when AMD sells HD6970 chip for $85, it costs them probably $30-40 to manufacture the chip. The profit margins by original manufacturers of these parts are already baked in. This is essentially a price list for parts you have to pay AMD/NV if you are a 3rd party like their AIBs/MS/Sony.
| 1337 Gamer said: To be short. Computer components are more expensive than you think to manufacture. And on top of manufacturing costs AMD wants to make a profit. MS and SONY and even Nintendo for that matter will not pay Retail price but they will pay well above the manufacturing price. |
The charts referenced do not list manufacturing prices. They list component/graphics card kit selling prices from AMD/NV after AMD/NV added on their profits. The manufacturing prices for GPU chips are well below their $85-120 selling prices. When NV sells EVGA GTX580 kit for $210 "List Price", Nvidia's 51% Gross Margin is already included in this quote to EVGA. What happens from $210 to $499 MSRP are mark-ups (for packaging costs, warranty costs/RMA, selling costs, marketing costs, technical support, transportation costs, etc.) and profits tacked on by AIBs and retailers like Newegg.
The GPU you are buying for $500 on Newegg in reality only costs NV/AMD $100-120 to manufacture all the parts, and then they tack on their 40-50% Gross Margins and sell it for $190-220 to their partners (EVGA, Sapphire, MSI, HIS, Asus, etc.) who sell the GPUs in retail channels. Think of MS/Sony as cutting the AIBs/retailers middle-men because MS/Sony aren't interested in making a profit selling these GPUs to consumers. Meaning, they can purchase a $350-500 GPU directly from AMD/NV for $180-250. Mid-range $200-250 GPUs probably for half of their retail prices, etc.
