AMD Comfortable with Current GPU Pricing, No Cuts in Sight

[btarunr]

A little later this week, NVIDIA will release two of its front-line GPUs that are compliant with the latest industry standards, notably Microsoft DirectX 11. This brings competition to AMD's high-end Radeon HD 5800 series and Radeon HD 5970 graphics cards, or does it? Competition often tends to have a pro-consumer effect out of price-wars. Sources indicate that AMD is not inclined to cut prices of its products after NVIDIA's launch of GeForce GTX 400 series. A few factors we think could prevent a price-war:

• AMD could have a fair idea about how GeForce GTX 400 series GPUs compete with its GPUs, and given that their estimated performance levels and estimated target prices (estimated US $499 for GTX 480 and $349 for GTX 470), the performance/price equation for AMD's Radeon HD 5800 series GPUs iron out, with HD 5870 at around $400, HD 5850 at around $325, and HD 5830 at $240, barring HD 5970, which is being priced at a premium for its premium performance levels.
• Although NVIDIA and its partners officially launch their GeForce GTX 400 series products on the 26th of March, market availability, backed by sizable inventories could just take some time, allowing AMD to maintain its prices.
• AMD is introducing newer variants of its HD 5800 series GPUs, namely HD 5870 Eyefinity6 2GB, and allowing AIB partners to come up with 2 GB models of Radeon HD 5800 series cards.

View at TechPowerUp Main Site

 

[qubit]

No cuts? Don't you believe it. There's more competition, so the price will change, whatever the initial prices are.

 

[afw]

A definite blow for people who've been waiting for prices to drop ...

EDIT : I remember people saying the 480 would cost $550-$600 (manufacturing cost due to chip size ) ... so if they are actually launching them @ $499 and $349 they are probably selling them at a loss ... so the chances of nVidia reducing the prices in the future is also very remote ... And as the article says ... if the FERMI performance isnt great there is no reason for ATi to drop prices ... No competition = No price drops = Unhappy customers ...

 

[Lionheart]

I dont believe this one bit, they will lower prices those greedy poofs!

 

[shevanel]

it all depends on the benchmarks.

for $100+ more than a 5870, the 480 better give more than lol 10%.. for $0 I can overclock my 5870 and get 15%.

so yes, it all depends on the actual performance of the new Nv cards vs the 6 month old ATI cards.

 

[toyo]

I'm one of those that put $ to $ in the piggy-bank, waiting for them prices to go down. However, my 4850 seems OK for now. I think of skipping this entire gen of GPU/CPUs... Well, maybe if Bioware would put out some amazing RPG that won't work at 1680x1050 on my 4850, then I'll buy something.
But AMD, you sons o' bitc**s... put the 5850 on the cheepo level, please. 200$ will just do.

 

[Zubasa]

I'm one of those that put $ to $ in the piggy-bank, waiting for them prices to go down. However, my 4850 seems OK for now. I think of skipping this entire gen of GPU/CPUs... Well, maybe if Bioware would put out some amazing RPG that won't work at 1680x1050 on my 4850, then I'll buy something.
But AMD, you sons o' bitc**s... put the 5850 on the cheepo level, please. 200$ will just do.

Wait for the 5830 to come down in price, grab one and be done with it.
$200 for a 5850 won't come any time soon, not before the GTX 460 or something like that.

 

[MatTheCat]

I reckoned as much as this a week ago, so decided just to buy my 5850 then. So unlike most of you, I am quite pleased that the price isn't coming down anytime soon.

Come Nov 2010 and the release of mainstream GT4xx cards, and then I think the 5xxx series could start to lower in price.

 

[Bjorn_Of_Iceland]

No price drops for them indeed.. ATI's graphics cards doesnt have any direct competition.

 

[Hayder_Master]

yea it's right for now until they see nvidia cards have better performance

 

[FordGT90Concept]

AMD must be pretty confident that NVIDIA's Fermi GPUs are nothing to get excited over. There's nothing to say AMD won't go back on their word long after the launch, however.

 

[toyo]

Well, that's what I payed (200$) for my Asus 4850, maybe a month or two after it came out. And it was damn good. So I thought maybe the 5850 will get to the same price point, with nVidia's help. I'd wait to November alright, I waited this long already. But now I, too, feel that only the 5830 will come close to that price point.
Or maybe nVidia will come up with something good, I pretty much forgot about them since my 6600 GT. That would certainly be something to remember.

 

[Bundy]

I think its simply down to supply and demand. Nvidia will not have enough finished product available to pressure ATI margins for a few months yet. It's a bit unrealistic expecting price cuts now.

 

[gumpty]

Yep, I will be pleasantly surprised if ATI drop the prices, but if the rumours of Fermi's performance are true, then I don't see it happening.
ATI plays the value-for-money game, so unless Nvidia's cards come close to them in that regard then price-drops are unlikely. People are getting smarter when it comes to purchasing graphics cards too, so if a 20% price premium for a GPU that only gives 10% extra gaming wasn't bad enough, if it chews more power and is noisier too ... well ... people will still buy it, but they will be in the minority.

We'll all find out tomorrow though!

 

[KainXS]

Nvidia is in a similar boat as AMD at the 58XX launch where there was only about 20,000 58XX cards at launch, Nvidia only has 50,000 GTX4XX cards at launch, so AMD dosen't really have to do anything, but nvidia actually has more cards than AMD had at launch.

http://www.brightsideofnews.com/new...ble-in-higher-volume-than-radeon-hd-5800.aspx

 

[Zubasa]

Nvidia is in a similar boat as AMD at the 58XX launch where there was only about 20,000 58XX cards at launch, Nvidia only has 50,000 GTX4XX cards at launch, so AMD dosen't really have to do anything, but nvidia actually has more cards than AMD had at launch.

http://www.brightsideofnews.com/new...ble-in-higher-volume-than-radeon-hd-5800.aspx

We would have expected at lease 100,000 cards after 6 months, I guess Fermi's die size is the problem again.

 

[assaulter_99]

Meh I don't and didn't think amd would cut prices straight away. This only shows you are worried and tbh, they don't have a reason yet. They'll probably wait a couple of months, see what the community thinks and reacts to NV new product line. If sales tank for amd, then they'll consider it. So honestly, we are far from that. Just see for yourself, how many months did the gtx 295 keep its higher price tag when the 5870 hit the market?

 

[Yellow&Nerdy?]

Somehow I'm not surprised at all, although I did hope for atleast minor price cuts. Nvidias new cards won't be a direct threat because they don't necessarily outperform ATI cards in the terms of price/performance/power consumtion & heat, and Nvidia won't be able to get real mass availability for atleast a month or so. Let's not forget that ATI has already sold 2+ million DX11 cards, while Nvidia hasn't sold anything. I do believe that there will eventually be price cuts, but not very soon.

 

[KainXS]

I think the last minute change to drop a sm to increase yields caused them to not use the 512 parts they had, I would rather they used them and made it like russian roulette lol.

 

[Semi-Lobster]

I don't see why they just don't at the very least drop it back to the original launch MSRP, with production becoming more efficient over time, It would make sense to bring the 5870 back to to the launch MSRP of $380, the 5850 back to $290, 5830 for $200 etc. etc.

 

[Sasqui]

Unless NV can pull a rabbit out of thier hat, prices will change only slightly until AMD comes out with a 5890 or 6xxx series.

There is the possibility of a "price war" - but that would depend on demand and market conditions. Both NV and AMD would be happier to leave the prices where they are

 

[assaulter_99]

I don't see why they just don't at the very least drop it back to the original launch MSRP, with production becoming more efficient over time, It would make sense to bring the 5870 back to to the launch MSRP of $380, the 5850 back to $290, 5830 for $200 etc. etc.

As long as you can reap the benefits, you don't give sh*t lol. Put it that way, amd were in an abyss, its the first time in ages they can at least sit back and cash in easy, so they are milking every $$$ they can get from it. Anyways, we don't know if its the retailers or amd cashing more money btw. Aint too clear. But you've got your explanation!

 

[crow1001]

ATi have a six month lead on NV, they have cards out for all segments of the market. NV are coming with hot and hungry cards that are supposedly not much better than ATI's currrent top end cards. Availability will be very limited as well going by ATI's supply from TSMC with a decent process, NV supply with their well documented process problems will be even worse. They have no reason to drop prices, because we all know the 470/80 will be way over priced on initial release, ATI have all bases are covered.

 

[Tatty_Two]

Why would ATi cut prices if they don't "have" to? Let's say as an example, the HD5870 is 10% slower than the opposition but 15% cheaper then they would not cut their margins, thats exactly why at times in the past they have sold more units but made less profit.... of course the same can be said of the green side but with them it's usually the opposite way around as in one of their products may be 10% faster but is priced 20% more expensively.

However, if the opposition is 20% faster but the HD5870 is only 15% cheaper than I would still guess that prices will drop..... I can only guess that ATi have some solid insider information that is tangible on both price and performance for the opposition, if they havent then they might just lose out.

 

[AlienIsGOD]

AAARGH..... It looks like I will be getting a 5770 instead of a 5800 series. I just cant afford the 5800's with my kid and all. But the 5700 series is good performance and I will definitely pick one up next Wed.