AMD Lowers Prices for Radeon RX 5700 NAVI Cards, 349 USD and 399 for the XT USD

Discussion in 'Frontpage news' started by Hilbert Hagedoorn, Jul 5, 2019.

  1. Mesab67

    Mesab67 Master Guru

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    "AKA my overall point to the post was not to say it's guaranteed or discuss that fact, but rather state that AMD would be smart to never bait another company on prices, as they'd in the end bait their own fans/customers, or screw them over because the "bait" wasn't successful. Just wouldn't make even the smallest amount of sense from AMD, PR wise."

    None of us will know the pricing until release date (super series too). AMD did indicate pricing initially, and they also knew Nvidia's then (non super) pricing. Nvidia reacted by indicating pricing on their super series, to be released after AMD's official release. Until release we have potential headroom for final pricing on release date. It's this headroom/pre-release flexibility that's at play here (by both participants). Once AMD's reduced pricing is attached to physically available cards, then that round by AMD is over - they simply can't respond too soon to any changes Nvidia might make in playing with its own headroom, if available, until its re-configured series is released too.
    We can infer, to an extent, what's underneath this. While baiting might be too strong a word, both companies are clearly playing with profit margins, especially when tied (unusually) to two imminent product releases. Additionally, Nvidia, on the release of the super series, will have interacted with the buying public twice in a relatively short time (risk). AMD may be able to equally risk a second card in the not too distant future - before any new (proper) Nvidia refreshes.

    Important: until products are actually released all pricing is subject to change, hence the use of the word "indicate".
     
    Last edited: Jul 5, 2019
  2. user1

    user1 Ancient Guru

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    I would like to remind people, that amd like nvidia has to recover its R&D cost, inorder to be profitable(something amd has struggled with in recent times), they will set the price as high as they think they can in-order to recover those costs ASAP, perfectly normal to adjust pricing with changing market conditions

    I wouldn't say its about gouging , amd isn't really in the position to do that.
     
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  3. kings

    kings Member Guru

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    Some people actually think that the initial price of Navi cards was to troll Nvidia? When reading certain comments, leads me to believe that some people don´t have a clue on how to run a business!

    Yeah, AMD thought: "That's it, let's point out a higher price, for the hype to start dying a bit and make our cards less interesting ... that'll do the job. In the process, we will show everyone that we would charge more just because we want money, when in fact we can sell cheaper.

    Yes, this makes perfect sense, great plan from AMD!

    AMD has positioned the prices according to a certain competition, but when the competition responded with performance gains for the same price, AMD had to position their cards with lower prices. Simple as that!
     
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  4. Fox2232

    Fox2232 Ancient Guru

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    Because reference TBP does not equal performance under different cooling solutions. And custom cards from AIBs may have different limits.

    Would AMD change PCB for anniversary? Is there going to be something else different than vBIOS power limit? I expect that GPU will be more power efficient to clock higher without eating much more.
    I kind of question value outside of sentimental value.
     

  5. leszy

    leszy Master Guru

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    An interesting move from AMD. I think AMD deliberately gave an overpriced price to RX cards, because it was known that NVidia will traditionally attack with new models to counter new AMD cards. Because NVidia can not fight by lowering the price (big expensive TU104 chips give too little profit margin), it was possible to predict that NV will try to create rebranded chips that give better price / performance ratio. Only that this rebranding was aimed at competitors at different prices than those currently provided by AMD. I wonder what will happen in a few months, when as usual, with new drivers, the performance of RX cards will increase by 20 percent, and the price will drop by another 10 percent (with such a small chip, AMD can afford it).
     
  6. Aura89

    Aura89 Ancient Guru

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    Not sure where you're getting that they "indicated" anything. They stated, not indicated.

    Don't believe me? watch the E3 announcement of the products and stated prices

    Where you'll see things like:

    [​IMG]


    Again, no indication. Announcements. Stated their price. Stating ones products price is not indicating their price. Indicating ones products price would be something like "It'll be in the $400-500 dollar range", that's an indication. Stating ones exact MSRP price is not an indication, that's a statement. The company ofcourse has every right to change their own statements, before or after release, it doesn't make any difference to what they are allowed to do, but there is not "indicating" going on here

    As to the rest of your reply, again, AMD announced and stated their prices, these prices are for their released product, the fact that they (supposedly) are lowering these prices in response to nvidia is not even remotely evidence of AMD trying to do....anything to nvidia. AMD would much rather release their products at the originally stated prices, if they believe they could get away with it and it still offered value. Believe me, i can guarantee you that they are not happy about losing 12% of what they expected to get from these cards, let alone the fact that the 12% is a much, much larger percentage when it comes to how much percentage profit they are making.

    No matter what way you want to spin your comment, there would be absolutely no good from AMD to try and trick their own customers in hopes that they trick, fool, bait, whatever term you want to use, nvidia into reacting. All it's shown to AMDs customers, if this price decrease is true, that they could have originally priced it lower, but didn't, because they thought they could get away with it. Which is fine, they should look to get as much profit as possible, but most customers don't care about corporations or their profits they just want to get whatever they want for as cheap as they want and when they see a company could have given it to them cheaper, they get upset.

    There is no trickery here (if the prices are lowering), it is simply, as i guess i must state this again:

    AMD thought they'd be able to get more profit from their GPUs, nvidia showed that if they kept their prices at what they had they wouldn't sell well at all, and AMD decided (supposedly)to take less profit. it's that simple.
     
  7. Mesab67

    Mesab67 Master Guru

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    -->Until products are actually released to the public all pricing is subject to change, hence the use of the word "indicate". Until this happens there's 'flexibility' (a more neutral term), particularly when both companies are about to release competing products.
     
    Last edited: Jul 5, 2019
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  8. Aura89

    Aura89 Ancient Guru

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    You must realize they did just that right?

    RTX 2070 uses the TU106 $499
    RTX 2070 S uses the TU104 $499
    RTX 2080 uses the TU104 $699

    Or another way to put it, if the namings are messing things up

    Pre-super: top end TU106 card cost $499
    After-Super: New TU106 card costs $399, $100 reduction, for a very similar performance, many times beating the previous high-end TU106 card that was $499

    Pre-super: low end TU104 card cost $699
    After-Super: New TU104 card cost $499, $200 reduction, for similar, but typically slightly lower performance of the previous low-end TU104 card

    The real only difference(for the TU104) is that now there's two TU104 cards, a "low-end" RTX 2070 super, and a "high-end" RTX 2080 super (not counting the original 2080 as that appears to be phasing out)

    The only difference between a "slap a new sticker price on it" price decrease and what they did here is that they created new configurations of their chips (maybe due to yields? Who knows), set the frequencies differently, and named them all a step lower then they were before with a step lower pricing as well.

    Even after a product is released it's still flexible. The company can decide after a product is released to lower the prices and even refund the difference, if they so choose. They can even decide not to refund the difference, if they so choose.

    It literally makes no difference, and it's literally not the term used for "indicate".

    It seems more like you're making up ideas of what AMD may or may not be doing to justify what you are seeing in a positive manner, when it's literally this simple, again:

    AMD thought they'd be able to get more profit from their GPUs, nvidia showed that if they kept their prices at what they had they wouldn't sell well at all, and AMD decided (supposedly)to take less profit. it's that simple.

    I can't make it any more simple then that so i'll just stop replying to your comments and there's nothing to discuss. This is what happened, if you want to make up stories as to what happened to make it look like amd was "clever" or whatever it is you are doing, go right ahead.
     
    Last edited: Jul 5, 2019
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  9. 0blivious

    0blivious Ancient Guru

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    There sure is a lot of speculative arguing. I say this is good news and I really couldn't care less why the prices shifted.
     
  10. Aura89

    Aura89 Ancient Guru

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    There's facts, and then there's not-facts. I'm tired of not-facts being portrayed as facts, that's what happened to me.

    If you state comments like they are facts such as "This is what happened" or "This company did this" or etc. your comments by anyone and everyone, everywhere, should be challenged.

    I don't care if you're president of the united states, president of the world, president of the galaxy, or just some random joe-schmo that wants to dirty the water of factual information, you should be challenged if you portray opinions, as facts.

    Want to say windmills sound gives you cancer? You should be challenged.
     
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  11. __hollywood|meo

    __hollywood|meo Ancient Guru

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    i dunno, i think aura has only told me im wrong once :p maybe i should start using weaker arguments so he can chew me out too
     

  12. jwb1

    jwb1 Master Guru

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    Yeah, AMD didn't think nVidia would revise their products and price them competitively to match.
     
  13. fredgml7

    fredgml7 Active Member

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    I agree with you.

    Sincere questions:
    1 - Do you think AMD hadn't a clue about Nvidia's move (super)?
    2 - What would you do as AMD CEO (consider the fact you need to make money)?
     
  14. Aura89

    Aura89 Ancient Guru

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    I honestly do not know if AMD had a clue as to what was actually going to be done. I'm sure they expected a release either around this time or in the next couple of months, just from past history, and i'm sure they expected that nvidia would want to try and compete whatever way they could even if they didn't expect a release of graphics cards. From the looks of it though they did not expect nvidia's super series to be the price and performance they are, if the decrease in price turns out to be true.

    As to the 2nd question, it's hard to say. I'm not a CEO of any company. But if i wanted to make as much money as a reasonably could, i probably wouldn't have announced prices, so that way my company wouldn't have to lower its prices due to my competitor undercutting me. At least not a month before the products are released. But ultimately, i'd price, and continue to change prices dependent on the market, as long as its profitable to do so, with as much profit as i can.
     
    Last edited: Jul 5, 2019
  15. fredgml7

    fredgml7 Active Member

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    Fair enough.
    Those are hard decisions to make, and I believe AMD has less room for errors, at least not as much as Nvidia and Intel. So it's hard to judge.
     
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  16. Mesab67

    Mesab67 Master Guru

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    Aura89: it would do you well not to be so one-dimensional. Relentless and predictable reactionary posting, traits normally aligned with paid shills, won't sit well with the majority.
     

  17. Aura89

    Aura89 Ancient Guru

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    HA! I was just posting to someone else about this. Good job for proving my point lol
     
  18. CyberSparky

    CyberSparky Active Member

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    At least someone on here has some common sense, and the time to stomp out misinformation. Cheers to you Aura89.

    I literally started lmao when I saw the first page where someone was saying that AMD overpriced their cards to bait Nvidia, like seriously? What world of disillusion do you live in? What company does not want to turn maximum profit for their products? At least AMD was smart enough to lower prices to match the current performance level their products hold. I do hope we see some high end cards from AMD, as it may help Nvidia bring their prices down a bit, but I won't hold me breath. Maybe next time? ;)
     
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  19. kings

    kings Member Guru

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  20. UnrealGaming

    UnrealGaming Ancient Guru

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    Awesome to see the price drop. The prices of both Turing and Navi were ( and still are, somewhat ) high.
    What bothers me with these GPUs tho, is not even the lack of raytracing hardware, but the lack of, what seem to me, more fundamental new features like variable rate shading and mesh shading. Was totally expecting Navi would support that.
     
  21. SpajdrEX

    SpajdrEX AMD Vanguard

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    Prices still too high
     
  22. Lucifer

    Lucifer Master Guru

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    you got it wrong dude, amd HAVE to lower the price seeing the benchmarks of the supers. If nvidia didn't release the supers, I am sure amd would stick to original pricing.
    See what competitiveness brings to the market ? all in all, it's customer who wins.
     
    Last edited: Jul 6, 2019
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  23. Kaleid

    Kaleid Ancient Guru

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    Although they quite often do not go full price war, but simply keep it at levels in which both can make a profit.
     

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