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haxxiy on 27 February 2021
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JEMC said:
haxxiy said:

I doubt these companies have any interest in the chance of a supply shock. If prices fall too much, cryptos could be dragged down with it because of a lowered entry barrier, and the market is flooded with used parts. Good luck explaining to your shareholders why your shiny new product is selling at hundreds of dollars lower than it was forecasted to sell.

Why bother selling large die GPUs at gaming prices when you have the chance to make it into a lucrative market with server-like margins instead?

But that has nothing to do with Nvidia nor AMD. They produce the chips and sell them to their AIB partners with fixes prices that have been stablished in contracts. They're only making more money because they're selling more chips.

It's the likes of Asus, Gigabyte, MSI, etc that are inflating the prices of their cards and then there are also the stores raising their prices even more to reap the profits of this whole crypto bullsh*t. They're the ones that will see their profits fall like a rock when/if the current crypto crazy ends and, to be honest, I don't give a fuck if they have problems because of that.

I'm not talking about the current cards, I'm talking about upcoming hardware. The gaming GPU market is not very profitable compared to the prosumer one, let alone the CPU market. And now, more than ever, they can hold the market on their own.

Not that Nvidia and AMD would abandon it outright, mind, but I fully expect future cards to be increasingly worse in terms of price vs. performance compared to former generations. It's a golden opportunity to eventually charge $500-1000 for a ~ 200 mm2 chip like in the CPU space.

Of course, a good theory has to allow some sort of prediction, so there you go: the upcoming Radeon cards, much like the vanilla 3060, will have a noticeably worse price vs. performance ratio compared to previous offerings.