GPU Prices Rise Again: What Does This Mean for Tech Fans?
Graphics cards are back in high demand, and it's causing concern | ENBLE
Graphics card sales are up, and it’s causing concern – ENBLE
Image: Jacob Roach / ENBLE
Great news for all the technology enthusiasts out there—GPUs are finally selling like hotcakes again! After the infamous GPU shortage, graphics cards were struggling to make their way into the hands of eager gamers. But according to a recent report by Jon Peddie Research, GPU shipments have seen a whopping 16.8% increase compared to last quarter. While this turnaround is promising, there’s a nagging worry about what it could mean for GPU prices. Hold on to your wallets, folks—we’re in for a wild ride!
Both AMD and Nvidia, the titans of the graphics card industry, emerged from the pandemic-induced slump with brand new ranges of GPUs. Nvidia boldly set the bar high by pricing their cards higher than ever before, and AMD quickly followed suit, with cards priced just low enough to be considered a value by comparison. As a result, the cost of building a new gaming PC has skyrocketed to unprecedented heights, leaving our bank accounts feeling a little deflated.
However, in the past year, both AMD and Nvidia have struggled to maintain these lofty prices. AMD slashed the prices of their RX 7900 XTX and RX 7900 XT, while Nvidia followed suit and reduced the prices of their RTX 4070 and RTX 4080. But there’s always an exception to the rule, and in this case, it’s the RTX 4090, which has seen a price increase due to certain political sanctions. Talk about your high-stakes gaming!
Now, with shipments on the rise again, there’s a real fear that Nvidia and AMD might reverse course and jack up those prices again. And trust me, fellow techies, this is problematic because most of the GPUs in this generation hit the shelves with price tags that were a tad too steep for the performance they offered. It’s like buying a racehorse for the price of a unicorn!
These exorbitant prices have been the driving force behind the recent price cuts. Take the RTX 4080, for instance. As you’ll see in our RTX 4080 review, it’s a fantastic GPU—if you can simply ignore the fact that it arrived on the scene costing $500 more than its predecessor (that’s $1,200 compared to $700 for the RTX 3080). AMD’s RX 7900 XTX, which directly competes with the RTX 4080, also played a major role in bringing those prices down. On their own, these cards are decent performers, but when you consider their price points, they start looking like technological trinkets.
Nevertheless, these cards managed to find buyers, but perhaps not at the rate Nvidia and AMD had anticipated. As Jon Peddie wrote in the report, “All through the last three quarters, add-in boards sold, not at normal volumes, and albeit with complaints about prices, but sold, nonetheless.” So, even though some gamers were grumbling about the costs, they still couldn’t resist a shiny new GPU. We’re a dedicated bunch, aren’t we?
But here’s another crucial piece of the puzzle that pretty much guarantees GPU prices won’t be taking a nosedive anytime soon. Word on the digital street is that Nvidia has apparently halted production of the RTX 4070 Ti and RTX 4080 to make way for a rumored Super refresh, rumored to be unveiled at CES 2024 in January. So, all those price cuts we’ve been witnessing lately were likely a clever strategy to clear the decks for these shiny new Super cards to enter the market at the same list prices. Sneaky, sneaky, Nvidia.
We’re all thrilled that GPU shipments are on the rise again, but this might come at a cost—the fear of prices creeping back up overall. The report highlights that desktop GPUs are the driving force behind this increase, with an impressive 37.4% rise compared to last quarter. It seems our beloved desktops are leading the charge in this price tug-of-war.
Now, let’s not jump to conclusions and assume graphics cards will suddenly start selling above their list prices. The main concern here is that the reduced prices we’ve been enjoying for the past few months may disappear, and GPUs will bounce back to those lofty list prices. However, it’s crucial to consider the longer historical context. The report indicates that despite the quarter’s increase in GPU shipments, they’re still down 5.1% compared to the same period last year.
Peddie sees this as more of a correction, stating, “This bounce back … is being overpraised when it largely reflects a cleaning out and straightening up of the distribution channel.” But hey, let’s not overlook Peddie’s apt warning about these reports: “The mistake is the constant search for sensationalism. It’s fatiguing.” Fair point, Peddie.
Alright, brace yourselves, dear readers, because the biggest risk we currently face is not GPUs suddenly selling for two or three times their worth, but rather the gradual disappearance of those much-needed pricing corrections. So, keep your eyes peeled, continuously monitor the situation, and be ready to snag a great deal while it lasts!
So, what are your thoughts on the rising GPU shipments and the potential impact on prices? Are you excited about the new Super refresh cards? Share your opinions in the comments below and let’s geek out together!
