Sales of graphics cards hit lowest sales since a decade

Discussion in 'Frontpage news' started by Hilbert Hagedoorn, Nov 28, 2022.

  1. AuerX

    AuerX Ancient Guru

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    Nobody but a nutjob cheapens their brand when they are on top.
    It's hard to reverse an image, look at AMD.
     
  2. Agonist

    Agonist Ancient Guru

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    Prices suck yes.
    Some are cry babies too. Like buy a console then. $350 for a 6750xt. Come on. Thats not high. Seen brand new 6800xt for $550 and launch was $699. 5700xt was $299 in Sep before mining took off and release of RTX 3 series.
    RTX 2 series was even higher.

    And damn people cant count.
    6 series and 3 series are now 2 years old, not 3.
     
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  3. Ivrogne

    Ivrogne Master Guru

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  4. pegasus1

    pegasus1 Ancient Guru

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    Resellers have bumped up the prices of last gen cards, 6900xt and 6950xt are £200 more than just a couple of months ago.
    People cant afford a 4080 so are looking at top tier last gen, so the prices of those have risen.
     
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  5. XP-200

    XP-200 Ancient Guru

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    Oh dear, so sad, well moving on. Lol
     
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  6. Keitosha

    Keitosha Ancient Guru

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    Sometimes you can hear sentences in their corresponding voices, but this one generated an image in my mind (at slow matrix printing speed which was way cooler tbh). :D
     
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  7. Undying

    Undying Ancient Guru

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  8. BLEH!

    BLEH! Ancient Guru

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    They're just too expensive. I remember the highest-end card at the time I bought it (5970) cost me £450-500 from memory. 7970s were £300 each. My Fury cost me £450, and lasted 7 years. I've only just replaced that with a 2nd hand (yet to install) GTX 1080 founders edition which was under £200.
     
  9. H83

    H83 Ancient Guru

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    Maybe you are correct but gaming is still a significant part of their revenues and profits and help offset the cost of developing GPUs for professional/sever uses.

    I think the problem is that made such a killing during the mining craze that now they are having a difficult time explaining shareholders why they need to drop prices...
     
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  10. scoter man1

    scoter man1 Ancient Guru

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    Yeah... "Oh look, low demand, lets cut production!"
     
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  11. wantobe

    wantobe Member Guru

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    So if you were casually mining with your 3k series or your 6k series GPU (but nvidia outsold AMD what 10:1? so not as relevant) after nearly two years it would have paid off or even netted you a 2x profit from your GPU that you bought two years ago (unprecedented event) - that is if you sold your special coin at the right time. (If not well, keep on hodling bro LOL) And then, if you sold your GPU on used market after 2 years of reaping benefits you could still get what solid 80% of the price your paid 2 years ago! Which in perfect circumstances could have netted you a brand new spanking 4090 or 4080 with change! So what we have here is that NVIDIA wants your gains in their pockets to mitigate oversaturated markets downsides with their previous gen product. And my personal point of view is 4090 is still not a end game 4k GPU (considering the price) while say, 3080 is kind of end game'ish (considering the price) GPU for 1440p. Everything lower down is even more traumatised by scalpers practices over last couple of years.
     
  12. fantaskarsef

    fantaskarsef Ancient Guru

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    They don't have to explain anything to shareholders... they just have to make sure that the earnings / share are good. And when data center is up more than gaming is down, it's a win in the end, and nobody cares about the prices of gaming hardware.
    Sadly, this is the reality one has to consider. Don't look at it from a gamer's point of view, but a business person's. Then it's pretty easy to see how higher prices are here to stay.
     
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  13. barbacot

    barbacot Master Guru

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    Well, I made the pact with the devil - my wife's birthday is coming and she is an avid gamer still using a 1080Ti so I bought as a surprise a 4080 MSI Suprim X - I cried and my wallet cried along with my common sense but it is what it is.
     
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  14. Sempaii

    Sempaii Member Guru

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    Well atm here in Denmark the powerbills are up by 800% plus the food price has gone up to.! soo there is no room for any upgrades at all.!
     
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  15. H83

    H83 Ancient Guru

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    You have a certain point but things are not that easy as "games are not buying our cards, then let`s just sell them to professionals".

    Is the data center demand enough to gobble all the GPUs that gamers are not buying?

    If not, what`s the solution? Cut the wafer purchases? They can do that but i comes with certain (heavy) penalties that make their chips more expensive, hurting their (fat) margings in the end.

    And believe me when i say that shareholders are going to want some explaining on why their sales, revenues and margins are down.

    And they are also going to want to know why there`s an huge stock of older cards, stock that is losing values with each passing day that and that needs a very big write off...
     
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  16. AuerX

    AuerX Ancient Guru

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    800% up from what year?
     
  17. barbacot

    barbacot Master Guru

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    The market is moving in some kind of inertia right now. I am pretty sure that some big price cuts will come from both AMD/Nvidia. The question is when and if you can afford to wait.
     
  18. schmidtbag

    schmidtbag Ancient Guru

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    And some still say miners don't/didn't make up that big of a difference...
    Granted, it is a perfect storm: the mining bubble burst (which by itself decreased sales) and then after nearly 2 years, prices just started to trickle below MSRP, which nobody wants to pay for a product about to be superseded in a few months. So everyone is waiting out.

    Yes, this is very likely. These companies are practically bidding for a bigger slice of the factory's contract pie. Even in decreasing production to meet the lowered demand, the factories are still most likely fully booked.
    I think it's possible the RX 7000 series will be a little cheaper though, due to the chiplet design.

    How are you not seeing the problem here? For an additional $50, you could get a PS5 DE which would offer an overall better experience than the 6750XT, and the PS5 DE includes the rest of the system along with a controller. Consoles have always been the cheaper option; PCs are worth more because they're a lot more capable, and, you always need extra headroom for unoptimized code. But it wasn't always the case where a single component would cost more than a whole console and still be inferior. That says a lot, considering modern consoles aren't cheap.
    Yeah and that sold like crap because nobody was okay with the price. That why the 3000 series was marked down so much in comparison. The only problem was, 2 or 3 months later, GPU mining became crazy profitable.
     
    Last edited: Nov 28, 2022
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  19. H83

    H83 Ancient Guru

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    A store is already taking off 100€ from the 4080´s, time to bit the bullet?...:rolleyes::p
     
  20. fantaskarsef

    fantaskarsef Ancient Guru

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    Well first of all you are right, it's not that easy.

    Also, this is a problem that's actually somewhat only taking real effect in the years to come... 30/6k gen are already done for and 40/7k gen will probably suffer the same fate, see OP.
    And AMD as well as Nvidia have already sold their chips... so they are not as directly feeling the sales (or the lack off) than with AIBs.
    Nvidia has not made themselves more friends lately in the AIB range so I'll be curious to see how this works out... that said, they have a market share that does not let any AIB partner ignore them either. Or manufacturers of laptops.

    So do they gobble up GPUs that miners don't buy? No. But there'll be just less GPUs produced to match declining demand... in the future. Artificially inflating prices due to cut supply. While indeed, putting more of the chips into data center products could be a thing. Lower orders leading to lower wafer prices (if they can't really switch over), and higher margins again. Without helping a single gamer, for that matter.

    And if that doesn't make wafers cheaper (since the GPU makers are competing for the lowest node etc.), like you rightfully said, what makes you think that they won't simply make the customer pay for higher wafer prices? That's something you see all the time... why do you think everything's getting more expensive once energy goes up, e.g. like it does now? Because no production company pays for that... the customer always does.

    You are right, that there's shareholders asking questions (although I think we both agree that's more metaphorical than by the word). But on the other hand, what does it mean if "shareholders" or "stakeholders" are losing confidence? Lower stock values which is supposed to make a company do something against said lack of sales etc.

    Only that such a decline's already in the stock. Look at it, it's already way down past those unholy numbers of last year's huge profits. Troubles are probably already priced in to the largest extent... you are right that such a stock is losing value but that's actually already happened.

    Also, what one might forget, backtracking stock of old graphics cards is mainly the problem of any reseller who bought an AIB card, or AIB manufacturer's stock... the chipmakers do not have much stock left to take care about because they never had stock in abundance (like AMD's own cards aren't large in number and Nvidia's FE cards are usually sold out in a matter of hours). So business partners of AMD and Nvidia have to put the pressure onto the chip sellers first, this is an indirect thing. The wares that are losing value are not Nvidia's... they're Asus', Gigabyte's, MSI's, Newegg's, Amazon's, OCUK's... you name it.
     
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