Tuesday, February 21st 2023
Graphics Card Prices Doubled on Average Between 2020 and 2023: Mindfactory Data
Mindfactory.de is hardly the largest tech retailer out there, but it's renowned for putting out its sales figures in public that provide sharp market insights. The latest of these concerns graphics card average selling price (ASP). The store notes that graphics card ASPs have doubled in a span of just 3 years, which marks an unnatural deviation from inflation, and cannot adequately be explained by rising chip costs due to Moore's Law either buckling or losing relevance. While Intel is a firm believer in Moore's Law, and to a smaller extent so is AMD (which disaggregated its CPUs and GPUs to continue shipping cutting-edge products at lower costs); NVIDIA considers Moore's Law dead, and thinks it needs to keep bigger and bigger GPUs to offer generational performance uplifts.
The store notes that as on February 2020, the AMD Radeon graphics card ASP stood at 295.25€, with the store having made 442,870€ in sales. For NVIDIA GeForce graphics cards, the ASP figure stood at 426.59€, and total sales at 855,305€. As of Feb 2020, AMD lacked high-end products (this was before the RDNA2 comeback), and so the NVIDIA ASP is higher. Fast forward to February 2023, and we see a doubling in the ASPs. For AMD Radeon graphics cards, this stands at 600.03€, with €1.02 million in sales; and for NVIDIA GeForce, the ASP is at 825.20€, with €1.84 million in sales.
Source:
200cm17cm100kg (Reddit)
The store notes that as on February 2020, the AMD Radeon graphics card ASP stood at 295.25€, with the store having made 442,870€ in sales. For NVIDIA GeForce graphics cards, the ASP figure stood at 426.59€, and total sales at 855,305€. As of Feb 2020, AMD lacked high-end products (this was before the RDNA2 comeback), and so the NVIDIA ASP is higher. Fast forward to February 2023, and we see a doubling in the ASPs. For AMD Radeon graphics cards, this stands at 600.03€, with €1.02 million in sales; and for NVIDIA GeForce, the ASP is at 825.20€, with €1.84 million in sales.
52 Comments on Graphics Card Prices Doubled on Average Between 2020 and 2023: Mindfactory Data
The human mind is flawed to accept propaganda without context. People will complain about how bad the 6500XT is but if you bought one when 6600s were north of $550 for $215 you would be as happy as the overwhelming amount of positive user reviews on every etailer that sells them. So much that regardless of the narrative that card is more expensive today than when it launched.
I am a PC fan, I have been around Computers since I was 9 so it is a part of me. Today my only real interest is Gaming and I have always used AMD for GPUs since Nvidia burned me by gimping my GPU with a driver update and dropping SLI support (GTS 450 look it up) and I don't mean 2020. Intel is looking very tempting though. We need to buy more to force AMD and Nvidia to lower their prices. The issue is if either company drops their prices by 15 to 20% that they will not be able to keep up with demand. "Anecdote data, the Minecraft kids are now getting Fortnite PCs. Fortunately their parents for the most part will look at price and buy the AMD card because it is cheaper and has more VRAM."
I will tell you a story about propaganda. In Grade 9 I made the basketball team. That year was the first year of Air Jordans. The mind and Saturday afternoon NCAA basketball commercials made me dream about those shoes. I was able to convince my Mother to take me to the store to get some shoes for the Opening Game.
We went to BATA shoes, as soon as we entered the store I saw them. I hurried over to where the shoes were on display and when my Mom arrived she looked at the price (It was 3 000s) and said that was not happening. Crestfallen, she could see that I was and said "Lets look around the store to see if there is any other shoe that you could use". We walked around the store and she came onto some Air Jordan facsimiles from Bata. Instead of I swoosh going up this had another swoosh going down and was made of canvas for $39.99. I was broodish silent the whole way home and was not satisfied (She just did not understand).
When I went to school the next day it was generally forgotten about until it was time for the Game and we were in the Change Room. Feeling like a rabbit among Wolves I sheepishly reached in my bag and pulled out my shoes. When I had the confidence to raise my eyes exactly 9 other players on the team had the exact same shoe as me. The 2 players that had Air Jordans actually became the ball boys by the end of the season.
People remember the time of $500 top end fermis and think it was always that way. It wasnt, that was a knock on effect from the Great Recession. To think, if they had simply flooded the market with upcharged RX 6000 series back in 2020 and early 2021 they would have made an absolute killing, since you couldnt get anything.
The AMD line always smelled a little bit. If they wanted to keep up prices why would you restrict so much supply that your market share evaporates in less then a year? Handing your competitor the market on a silver platter did not work out well in 2016 and it isnt working well now either. I still think much of their "oh we restricted supply" argument is cope for their inability to get product out the door. In 2022 it's absolutely the reason why prices didnt fully come back to earth, but they seem to have had a REALLY hard time selling much of anything during the Great Lockdowns.
Of course, AMD's behaviour to AI now is the same attitude they had with rDNA, so......thank god for intel?
As is the cause, fewer mid and low end cards.
And all round way higher prices.
For once only a fool would debate mindfactories findings.
Stuff is dearer.
But so are beans milk and eggs sooooo.
Yeah no miners to blame either
Maybe nvidia didn't get the memo mining died :laugh: More dollars than sense ;)
If you upgrade each year, then yes the costs are getting out of hand, but if you skip a generation then it doesn't hurt as much.
pre covid to covid peak was about 400%
I see that $1500 price tag on the 4090 with the wrong type of cooler and chuckle. Nope. When it's at $1k or less with a pre-installed wb, I will pull the trigger. As long as people are okay with these insane prices and keep forking over cash it just sends a clear message to the retailer & manufacturer to keep on cranking the prices up more.
At least the 7900XT in Australia is a lot cheaper than the 6800XT was selling for due to the crypto scum, but still stupidly priced. I just got a second hand MSI Gaming Trio X 6800XT for half the price of the 7900XT and couldn't be happier. I will wait for RDNA3 refresh or consider a 4080 if it gets a $300US price cut.
inflation only works one way, up. the prices never come down again, companies will kill baby seals if they have to not to let that happen.
A slide in GPU prices faces resistance from many fronts. Investment markets have become extremely intolerant of real or perceived weakness. Dips in revenue or profitability are no longer expected events to be weathered, but red flags to trigger a sell. The consumer graphics market looks to be more-or-less sated in the low and midrange, so the manufacturers are looking to keep revenue numbers up by elevating ASPs since volume isn't doing the trick. Then there's the shift in the large-scale computing landscape. Even outside of crypto, there are many computing sectors that have learned to take advantage of the parallelism inherent in graphics processors. Ten years ago, consumer-bound products were the largest slice of the revenue pie by a good margin. Now there's all sorts of "industrial" clients willing to buy chips cut from the same silicon at a much higher margin. If you're Nvidia, who are you going to care about? AMD doesn't have the same presence in that market, but they're more than willing to ride the pricing wave that NV creates.
Anyway, TL;DR, graphics prices probably won't come down any time soon (upward price pressure is nearly always stronger than downward), but that doesn't mean they can't.
I guess if you sell milk and there is a million producers and hundreds of companies you can't do that, but that is also not relevant for this forum or this topic.