Wednesday, August 23rd 2017
AMD On RX Vega Pricing Oddyssey - "Launch Price Ongoing; Stock is to Blame"
In the latest news surrounding the strange, foggy circumstances of AMD's RX Vega 64 pricing, company-man Gerald Youngblood told PCGamesN that the announced RX Vega's pricing wasn't a launch-only affair. Specifically, he said that "Our SEPs, and the price tag that we announced, is our full intention of where we would suggest the product be priced. Not just for launch, but ongoing." Gerald then went on to say that RX Vega's pricing woes can't be attributable to AMD, in that "First of all we just need to drive as much stock as we can, because inventory is really important in everybody being able to hit those prices. Then it's just working with our partners to enable it, but we don't set the price of their product. But we will drive, and do everything that we can, to get those prices to where we suggested when we launched them earlier."While the supply and demand equation is something we understand, and is the principal factor in increased pricing for almost every component that goes inside a desktop PC nowadays (there are price increases across the board for GPUs, SSDs, and DRAM memory as we speak), perhaps we shouldn't forget that retailers themselves have been saying that they were only able to hit AMD's MSRP of $499 for Vega 64 due to rebates offered by the company. It's true that AMD can't really control the pricing at which retailers sell - but they can control the price at which AMD themselves sell to retailers, through the mentioned rebates. This is the particular point of contention, for now, regarding the company's pricing policy, because it seems AMD are limiting availability of Vega 64 SKUs at $499 by only selling a certain number of RX Vega 64 GPUs with the included rebates that bring the acquisition pricing down enough for retailers to be able to charge MSRP. Now certainly, retailers are always looking towards maximizing their profits as well; however, this "rebate" issue wasn't approached before in other GPU launches, which lends some credence to the retailers' position.
Source:
PCGamesN
37 Comments on AMD On RX Vega Pricing Oddyssey - "Launch Price Ongoing; Stock is to Blame"
As for the "most people who should know better" i'm sure you can find them in those same threads. Hence my OG question.
AMD ---> AIB (Sapphire, Gigabyte etc) ---> Local Distributor ---> Retailer ---> You
Where do you think the markup is happening?
My bet is on local distributors and retailers.
eg.
AMD supply reference card to AIB for $380
AIB slaps a sticker and box on it and sells to Distributor for $420
Distributor then wants to make margin and knows demand will be high so they list at $550
The retailer also wants to make margin and knows demand will be high so they list at $650
The only idiot in this chain is you for buying it.
AMD have so little control of the eventual price. However, if they are actually supplying the reference cards for $600 to AIB's then the problem is aggravated.
The solution to all this, if AMD and AIB's are to be believed, and which smacks the disty and retailer on the wrist is if the AIB sells direct to the public for MSRP.
But even the cheapest VEGA thats listed now is 100€ more expensive then an aftermarket MSI GTX1080.
And then you have to think of the extra power consumption, and on par or worse performance.
the "Poor Volta" picture from a few months ago should now read "Poor Vega"
I waited for Vega for a few months. Now i'll be waiting a few more for to see what nvidia brings to the table in a few months.
I had to take the jump and order a contreversial gtx 1060 3gb instead of a RX 570 4Gb because there is no other choice in the market, and my gaming habit/budget don't justify paying 80-100 € more for the 6Gb one. What a shitty time for budget uppgrade.
If AMD is the one that caused the problem, retailers just don't sell and consumers don't buy, where is the problem?
Nobody is forced to sell, and nobody is forced to buy!
What a mess... an Oscar to the PR department for the spin!