Monday, January 20th 2025
AMD's Radeon RX 9070 Launch Faces Pricing Hurdles
AMD's upcoming Radeon RX 9070 series graphics cards have hit an unexpected roadblock, according to recent reports from PC Games Hardware. Despite physical units already reaching select retailers, the launch appears to be delayed due to ongoing pricing negotiations. Industry insider and forum moderator "pokerclock," known for accurate predictions about NVIDIA's GeForce RTX 50 series, reveals that AMD's initial pricing strategy has created tension with retail partners. While boxes bearing the RX 9070 branding have been spotted in retail channels, disagreements over costs have prevented an official release. The core issue stems from AMD's aggressive pricing approach for both the RX 9070 and RX 9070 XT models. Retailers have pushed back against what they consider excessive wholesale costs, forcing AMD to reconsider its strategy.
The company now faces the complex task of potentially reducing prices while compensating retailers who have already purchased inventory at higher rates. Sources suggest AMD may offer marketing funds or cashback incentives to bridge the price gap, though negotiations have reportedly stalled. For example, we recently reported on the AMD Radeon RX 9070 XT AIB model costing around $549. However, NVIDIA has announced its GeForce RTX 5070 at the same $549 price point, with potentially equal or higher raster, ray tracing, and AI capabilities across the board. For AMD to make the value case, the company would need to undercut NVIDIA's pricing. Until that is resolved, retailers aren't allowed to place RDNA 4 GPUs in general sale yet.
Sources:
PC Games Hardware, PCGH Forum, via VideoCardz
The company now faces the complex task of potentially reducing prices while compensating retailers who have already purchased inventory at higher rates. Sources suggest AMD may offer marketing funds or cashback incentives to bridge the price gap, though negotiations have reportedly stalled. For example, we recently reported on the AMD Radeon RX 9070 XT AIB model costing around $549. However, NVIDIA has announced its GeForce RTX 5070 at the same $549 price point, with potentially equal or higher raster, ray tracing, and AI capabilities across the board. For AMD to make the value case, the company would need to undercut NVIDIA's pricing. Until that is resolved, retailers aren't allowed to place RDNA 4 GPUs in general sale yet.
175 Comments on AMD's Radeon RX 9070 Launch Faces Pricing Hurdles
Making the cards is expensive and profit margins suck. There's a world of difference between using those nodes for Epyc and using them for Radeon. I'm not sure selling RX 9070 XT cards for 500 dollars will make AMDs investors and high ups particularly happy.
9070 = 5070 @ $549
9070XT = 5070Ti @ $749
This rumor makes it seem the 9070XT lines up with the vanilla 5070. Why change the name if it doesn’t line up? If they do line up, $749 as a ceiling is quite high already. What prices was AMD thinking for the 5070 and 5070Ti? If like last series, there’s only a $50 difference. Were these the original RDNA4 prices ($549 and $749)?
Intel launching at the 350~400 dollar mark will put pressure on the RX 9700 already (Say, a B780).
Meanwhile, MLID posted video with performance leak (think of it as rumor):
Besides, the figures below clearly show why 529 euros with VAT is ridiculous proposition. The cards should be and will be more expensive as 9070 XT trades blows with RDNA3 XTX in some games and it is consistently better or equal to 7900XT.
On that logic, it's not outlandish to assume that we could get similar performance at a lower price this time around.
It's absolutely bizarre that people throw around any numbers without ever justifying it.
You need a lot of patience.
I see some weird clickbaits on the german pcgameshardware.de website a lot recently. I'm not sure if those stuff are just written to generate clicks. Especially for those other topics about amazon deals or the lego competition brick topics. Honestly I'm not sure if these claims are valid or not.
Does not actually matter that it will (maybe) beat RX 7900 XTX in few games. AMD is trying to win marketshare from Nvidia, not from itself.
Of course, the prices of RX 7900 XT(X) will then start falling but that's a tax you have to pay for gaining market share.
Still, even lower prices of previous gen hardware could win AMD some market share. Getting RX 7800 XT for around 420 € is not a bad deal. Nvidia will have RTX 5060 around 450-500€ price.
AMD should price RX 9070 XT at RTX 5070's price, maybe a tiny bit above.
Bottom line is mid range cards still cost 550, which is double what you paid in Early 2020.
Meanwhile the 5070 only has 4.35% increase in shaders from 4070.
The market is dead for the moment.
- better architecture
- more wafers from TSMC, probably at (much) better prices than what AMD can negotiate
- 9 times more sales
- brand loyalty and brand recognition from a big part of that 90% market share that Nvidia enjoys today
- favorable tech coverage
- (much) higher profit margins
- 15 times higher market cap
I have said many times in the past that AMD can't fight Nvidia directly. They will lose. Badly.
Let's hope that the new cards will get positive reviews from tech press and consumers, or things will get even uglier in the future.
RDNA3 was overpriced and people didn't buy it because you're greedy shits. Therefore your marketshare tanked.
If you want to recover marketshare then you need to swallow your greed, and your pride, and ensure that whatever you launch is cheap enough to attract buyers. If that means you have to make a loss on each GPU you sell then that is what you damn well do. And if you aren't willing to pay that idiot tax for your past greed, then you'd better be happy with your marketshare continuing to tank.
Your partners are not obligated to sell your product. Consumers are not obligated to buy it. If you want it to succeed, subsidise the shit out of it. This really isn't rocket science.
They should have just sold as low as possible to get it out, instead of waiting for Nvidia.
That was dumb. If you give people the choice of A of B for the same price, they are going to go with what they know.