AMD On RX Vega Pricing Oddyssey - "Launch Price Ongoing; Stock is to Blame"

[fullinfusion]

Where I live it's major price gouging I know the difference between a dollar and an American dollar and the price is based off the US dollar. I was in the city last week and stopped at a major chain and I asked a guy why the fuck is it so expensive!

He turned around and told me that it's because off the difference between the Canadian and the US dollar and import fees blah blah blah. I told him he was full of shit because I export weekly into the u.s. And I know what the markets doing.

I did however agree with him on the exchange rate difference but that was all.

He kind of rolled his eyes didn't know what the hell he was even speaking about and he was one of the head managers and I just straight right told him he's price gouging and this company should be ashamed of themselves but who am I to judge how one company operates over another.

And excuse my language but where are all the fucking mining only cards that the manufacturers promised to produce? Not the gaming cards but The mining cards?

 

[Hood]

All these pricing schemes, shortages, bundles, delays, HBM excuses - is anyone else thinking that AMD has a turd on their hands and knows it? And these latest pricing revelations point to a straight AMD cash grab from fanboys before they drop to around $300 as the market will dictate.

 

[Xzibit]

I'm just curious how many of these people complaining actually want to buy one to use or are they angry they cant buy this so called "turd" and turn it around for profit themselves and if thats the basis of their anger.

 

[Th3pwn3r]

I'm just curious how many of these people complaining actually want to buy one to use or are they angry they cant buy this so called "turd" and turn it around for profit themselves and if thats the basis of their anger.

I don't really see too many people complaining. I see more people talking about stupid pricing and laughing at AMD more than anything. Most people who have been following Vega know better than to buy one of the 64s, the 56 looks far better which most people have been saying since the first reviews came out.

 

[Xzibit]

I don't really see too many people complaining. I see more people talking about stupid pricing and laughing at AMD more than anything. Most people who have been following Vega know better than to buy one of the 64s, the 56 looks far better which most people have been saying since the first reviews came out.

I think we see different things then. I see a plenty of people on this subject spanning several threads complaining about availability @ a certain price point.

As for the "most people who should know better" i'm sure you can find them in those same threads. Hence my OG question.

 

[Kanan]

Honestly I have to say I trust the sellers more on this than AMD. Fact is, Vega is ultra expensive to build. It's a big GPU (~485mm², bigger than GP102 or 1080 Ti / Titan XP) and on top of this it has an expensive interposer and HBM2. The problem with HBM2 is also that it's payed by AMD, and then delivered to the AIB to be used on the cards - of course for the cheapest price possible. With GDDR5(X) this isn't true, because AMD just takes care of the GPU and not additionally interposer + HBM2 memory on the same package. Fact is, all this makes Vega much more a 600$+ card than a 500$+ card, imo. It makes no sense to sell it at 500, because Vega is simply way too expensive to build. Remember Fiji (Fury X)? It was priced at 650$ and even then, AMD didn't make much money on it per package sold. The same HBM/Interposer/GPU package and problems. So how are they supposed to make money with it at 500$ now? I bet it's not good for making any money at all at 500$, or worse - making loss for each GPU sold. I hope RTG is able to get some improvements through drivers, game patches and better performance in future games in general - because this situation, is just bad atm.

 

[Nephilim666]

So this is the supply chain:

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.

 

[Th3pwn3r]

So this is the supply chain:

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.

What if AMD and the distributor are BOTH marking it up

 

[Lox]

I will say that there is that end retailers (atleast some here in europe) are going crazy with the prices as one of the first posts allready mentioned.
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.

 

[Hood]

AMD is using the perceived success of Ryzen to feed the Vega hype train. This generates sales to AMD fans at high prices, despite vanilla performance and barbecue pit temps. Vega will not cause any greens to switch camps, quite the opposite - AMD fans who waited patiently for Vega are now buying Nvidia cards. Search for "Vega 64" on Newegg and your results are 3 or 4 stand-alone cards (all ~ $700, all blower cards), and dozens of bundles ($1100 - $2200) with Ryzen CPUs/motherboards/freesync monitors, using the "rare" Vega cards as bait to sell all the other stuff.

 

[dyonoctis]

Le comptoir du hardware also said that Vega and RX 500 should soon massively get shippied to retailers, as part as a quake bundle in the hope to see price get to normal. But's it's apparently more a "maybe" than a sure thing.
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.

 

[wow&wow]

AMD's intention to let sellers make more money in certain quantity, then getting greedy as a human nature?

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!

 

[Fluffmeister]

Yields must really suck after apparently delaying the launch just to build up the stock for gamers that waited for last years performance.

What a mess... an Oscar to the PR department for the spin!