Radeon HD 7970 Price Cuts Not Any Time Soon: Report

[btarunr]

A lot of prospective buyers of new generation GPUs were counting on the US $499 launch price of NVIDIA GeForce GTX 680 to result in reactionary price-cuts in the red camp, particularly with the $549 Radeon HD 7970. NVIDIA's GPU is faster, more efficient, and under normal circumstances, should leave AMD with no other option, but to cut prices of HD 7970 to stay competitive. However, that hasn't happened, and according to a HardwareCanucks report, will not happen any time soon.

NVIDIA's GeForce GTX 680 launch wasn't just on paper, there was market-availability on launch-day, although like every other new GPU launch, stocks have been quite limited. Before this launch, AMD and its partners managed to replenish inventories of Radeon HD 7970, making it generally available, while not budging from its ~$549 price. Sources told HardwareCanucks and this situation won't change unless NVIDIA has a more full-fledged lineup of new-generation GPUs against AMD's, or unless the availability of GeForce GTX 680 drastically improves.

AMD can't cut prices of HD 7970 without disturbing prices of its other HD 7000 SKUs, namely HD 7950, HD 7870, and HD 7850. The company is able to command relatively high prices for these SKUs, because they offer relatively high performance in their market segments. Until NVIDIA has new products to compete with these three SKUs, it makes sense for AMD to overlook, and even sacrifice the competitiveness of one SKU, the HD 7970. Besides, with AMD AIB partners out with a bouquet of non-reference design products based on the HD 7970 without charging too high premiums, AMD has a chance of attracting buyers awaiting availability of GTX 680 away from it.

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[Delta6326]

Dang I was hoping for price cuts.

 

[MxPhenom 216]

Now its going to propell people to get the GTX680 over the 7970 even more, if they were contemplating between them.

 

[N3M3515]

The truth indeed.
AMD has no reason to lower 7970 price, GTX680 is vapor ware right now.....way to go nvidia...
Now 2 more months for availability and for the GTX 660, 670 launch....

 

[BigMack70]

I just sucked it up and paid the price premium since I don't feel like selling the 7970 I got at launch... will have spent $1200 for an XFX DD BE and MSI Lightning 7970. 20% price premium over the 680s but overclocked (@1200 MHz) the performance should be very competitive.

I wish I had been more patient... could have saved some cash, but couldn't wait anymore past Jan. for the new card

Price/performance ratios are never good on the top end GPUs anyways... the 7870 and eventual 660ti are where all the great deals are gonna be.

 

[n-ster]

This is another reason why I'm not going to be going the 7XXX route

This makes the 6XXX series still very viable

 

[btarunr]

Every personal attack kills one of those. Have a constructive, objective debate.

 

[Dent1]

Now its going to propell people to get the GTX680 over the 7970 even more, if they were contemplating between them.

I agree. Only 3% performance difference between the cards - according to TPU review - They are the same speed. But the GTX 680 is $30 cheaper, so grabs the your attention.

But then again, if you are spending $500+ I doubt you'll care about another $30. So you'll probably still go with the 7970, if ATI was your brand of choice.

 

[AKlass]

AMD has something under there sleeves... either a victory driver, or they are hiding that it unlocks into a 7990

 

[ZoneDymo]

Well thats what you get when Nvidia puts their card up for just 50 bucks less and not lets say 100 or 150 bucks less (which they could easily do seeing as teh GTX680 was meant to be the lowest of the high performance cards) but nope, more money to be made this way.

 

[Darkleoco]

Well thats what you get when Nvidia puts their card up for just 50 bucks less and not lets say 100 or 150 bucks less (which they could easily do seeing as teh GTX680 was meant to be the lowest of the high performance cards) but nope, more money to be made this way.

The GTX 680 is being released as the highest single GPU card of "this generation" though it is not maximising the performance of Kepler.

Also I would be much happier with 3GB of vram on the 7970 over the minimal difference in performance between the 7970 and 680.

 

[TRWOV]

Now its going to propell people to get the GTX680 over the 7970 even more, if they were contemplating between them.

The thing is that availability of the GTX680 isn't widespread yet. What good is to have a $50 cheaper option if there isn't stock of it? AMD is betting on people getting impatient and going for a 7970/7950

 

[Casecutter]

Now its going to propell people to get the GTX680 over the 7970 even more, if they were contemplating between them.

As long a GTX680 aren't on shelves like now or just piddle in it really isn't any threat to a 7970. Face it it easier to get a 7970 for $550 than any GTX680 anypoint soon.

While GTX680 wasn't all that much faster on any true "demanding titles" at 2650x, nor was it that much better in true efficiency while actually gaming ~3% for 5% Fps in those same demanding titles. Cards at this price still struggle @2560x to maintain 40-60 Fps that's where it really matters. Will it will curtail some AMD 7970 sales IdK, hardly those who want AMD solution got theirs months ago, while those aspiring Nvidia will wait... It not a price thing it a deliverable thing.

(which they could easily do seeing as teh GTX680

The chip is one thing but you need to factor in the new components and PCB cost to hire that "Clock Speed Nanny". I haven't heard what those peice add to production cost, while give 2Gb on 256-Bit they made consessions to hold cost.

 

[erocker]

7970's must be selling just fine at the current price-point. If sales start to drop, AMD knows what to do. Once 680's actually start to flood the market, AMD may rethink their pricing.

 

[jihadjoe]

The thing is that availability of the GTX680 isn't widespread yet. What good is to have a $50 cheaper option if there isn't stock of it? AMD is betting on people getting impatient and going for a 7970/7950

This is exactly what people meant when they said that it's TSMC manufacturing that's actually causing high GPU prices.

Since TSMC can only manufacture so many 28nm wafers, and those wafers have to be divided between Pitcairn, Tahiti and Little Kepler, supply is effectively limited. Nvidia could sell Kepler for $300 and still be profitable (the die is smaller than the $250 at launch GF114, after all), but their maximum sales numbers would ultimately be limited by TSMC production.

In this regard, it's makes much more sense to price GK104 at $500, because even at that price they will sell out anyway. Or conversely even if they priced GK104 at $300 they wouldn't sell a single card more, because TSMC production is max'd out either way. It's an economics error much like the DDR3 debacle (oversupply = rock bottom prices), except this time things the other way around.

There just is no way a GPU price war can happen unless Nvidia can find a way to produce Kepler in large quantities (probably why their CEO was poking at Intel to accept more companies to their fabs).

 

[ensabrenoir]

Amd......the lovable underdog.....the peoples company........ Are we awake now? Business is business

 

[dir_d]

AMD wont lower the price because the card out preforms the 680 in compute and has more VRAM. The 7970 is overall the better card but the 680 is the best gaming card.

 

[phanbuey]

AMD wont lower the price because the card out preforms the 680 in compute and has more VRAM. The 7970 is overall the better card but the 680 is the best gaming card.

Yeah but the market at the moment doesn't really care about compute or Vram, those are fringe users. Basically the 7970 is slower and more expensive. It seems like they are castrating their own sales.

Not to mention the NV card *seems* cheaper to produce, so I bet NV has some room to play with

This is exactly what people meant when they said that it's TSMC manufacturing that's actually causing high GPU prices.

Since TSMC can only manufacture so many 28nm wafers, and those wafers have to be divided between Pitcairn, Tahiti and Little Kepler, supply is effectively limited. Nvidia could sell Kepler for $300 and still be profitable (the die is smaller than the $250 at launch GF114, after all), but their maximum sales numbers would ultimately be limited by TSMC production.

In this regard, it's makes much more sense to price GK104 at $500, because even at that price they will sell out anyway. Or conversely even if they priced GK104 at $300 they wouldn't sell a single card more, because TSMC production is max'd out either way. It's an economics error much like the DDR3 debacle (oversupply = rock bottom prices), except this time things the other way around.

There just is no way a GPU price war can happen unless Nvidia can find a way to produce Kepler in large quantities (probably why their CEO was poking at Intel to accept more companies to their fabs).

What you are missing from this analysis is that TSMC fills orders just like any other factory - by demand. If the demand is 80% for Kepler, 20% for AMD offerings, their production will adjust to match. There are currently 7970 in stock, so chances are retailers arent placing large orders for it, which means AMD is no longer demanding as many 7970 wafers = more production to kepler.

Nvidia could sell Kepler for $300 and still be profitable (the die is smaller than the $250 at launch GF114, after all), but their maximum sales numbers would ultimately be limited by TSMC production.

This statement is not 100% true. It is true now, because there is a time lag between the initial batch and the subsequent shipments to meet demand. But if that price was $300, the backorder list would be much much bigger, and TSMC's production lines would all be getting fresh "Kepler" stickers put on them.

 

[vega22]

yay!!!

lets kill teh kittehS!!!

anyway, so price fixing cocks in price fixing shocker?

why am i not surprised, nv release a midranged card for high end money and amd dont do price cuts.

money grabbing bastards.

 

[m1dg3t]

Doesn't surprise me at all TBH, they (ATi) were first with 28nm tech and they are using 3Gb Vram & 384bit bus. Thing's which add to overall card $$$ and i'm 99% sure will make the 7 series a more viable product for long term usage (some people like myself buy a card and use it for 3+ years) as software emerge's/mature's to take advantage of the hardware.

They need to recoup some of that R&D $$$ and i expect to see cut's in May/June. It really irk's me that ATi doesn't put much effort into marketing their product's because IMHO they made a huge leap with the 7 series and most people look right past them and straight to Nvidia.

It actually make's Nvidia look worse IMHO because they cheaped out on VRAM and cut back their bus to 256bit, nevermind the other shady tactic's employed to make this core look good. The only reason the GTX680 is $499 is to reduce the sting from the massive faceslap to their customer's, sorry to say Gotta give prop's to Nvidias COO/CEO & marketing dept as they really know how to make something out of nothing

Either way i'm skipping this gen unless i see 7970/680 @ $300 - $350, the price gouging from both side's need's to stop

 

[swirl09]

Not to mention the fact the 680, not on sale a week, and the prices have gone up. So no, you really won't see the 7900 price drop for awhile sadly.

I think it's pretty cheeky of nV, they put out a card which was originally not meant for the single gpu flagship position in that very slot because they could. That's not the part I have a problem with, they did make a great card and it performs at the high end, makes perfect business sense to do so. My issue is that they weren't satisfied enough with that measure and now because of demand they are pushing the price up even more, they're making a killing already :/

Wouldn't be surprised if it was all very deliberate, the launch mrsp featured heavily in every review, now that all major sites have the reviews out, price creeps up.

 

[m1dg3t]

Wouldn't be surprised if it was all very deliberate, the launch mrsp featured heavily in every review, now that all major sites have the reviews out, price creeps up.

Yup! That's why i keep mentioning their marketing & business mgmt dept they realy, REALLY do know how to make something out of nothing

 

[phanbuey]

Not to mention the fact the 680, not on sale a week, and the prices have gone up. So no, you really won't see the 7900 price drop for awhile sadly.

I think it's pretty cheeky of nV, they put out a card which was originally not meant for the single gpu flagship position in that very slot because they could. That's not the part I have a problem with, they did make a great card and it performs at the high end, makes perfect business sense to do so. My issue is that they weren't satisfied enough with that measure and now because of demand they are pushing the price up even more, they're making a killing already :/

Wouldn't be surprised if it was all very deliberate, the launch mrsp featured heavily in every review, now that all major sites have the reviews out, price creeps up.

Nvidia does not set prices at that level - board partners do. The same thing happened with the 5850. The price per chip stays the same from NV to the board partners, but due to demand they jack up their prices to the outlets. Nvidia doesn't see a $ extra from that 680 that PNY decided to sell for $550 unless they start jacking up the price that they sell the actual GPU for, which is not the case.

 

[Yo_Wattup]

And people say AMD are the good guys... Intel is competing against itself and they still have great priced cpus. Yet they are the evil ones.

 

[Inceptor]

I agree. Only 3% performance difference between the cards - according to TPU review - They are the same speed. But the GTX 680 is $30 cheaper, so grabs the your attention.

But then again, if you are spending $500+ I doubt you'll care about another $30. So you'll probably still go with the 7970, if ATI was your brand of choice.

That's probably true. But I can also see another reason; so far the 680 is only available with reference boards sporting the usual 'leaf blower' turbine cooler. The people willing to spend more money usually want better cooling, and the 7970s have better cooling solutions, allowing overclocking without excessive fan noise -- that also factors into the equation -- especially with such a small performance difference at stock.