PC Gaming Hardware Market Set to Recover From Supply Problems: JPR

[btarunr]

Jon Peddie Research (JPR), the industry's research and consulting firm for graphics and multimedia, has released its newest gaming market study regarding the PC Gaming Hardware Market, which consists of personal computers, upgrades, and peripherals used for gaming. The PC Gaming Hardware market both flourished and suffered during the past year. It flourished financially, however not in a way most would hope. Because of supply problems, a large portion of the consumer spend did not make it back to manufacturers, with an abnormal amount going to resellers who charged inordinately high prices for PC components.

This phenomenon leads to how it suffered. Gamers with average budgets could not always get what they needed, and new entrants sometimes put off, or even worse, abandoned the platform or hobby adoption. New entrants are very important to the long-term health of any gaming platform. A stark warning to hardware companies in the PC Gaming space that long-term growth is dependent on having products available and priced within reach of mass-market consumers. Also, a warning that total dependency on imported products and Just-In-Time inventory systems can be a weakness during market anomalies like the COVID pandemic.



But help is on the way. "PC Gaming Hardware companies are reviewing their Just-in-Time strategies and beginning to adopt Just-in-Case inventory levels. As a result, we expect inventory and sales of High-End products to grow dramatically in the coming years. Additionally, Ultrawide and 4K+ displays are now available at big box stores and online for historically low prices. This helps drive CPU and GPU demand, full builds, and accessory sales to gamers," says Ted Pollak, Senior Analyst Game Tech Industry.

Jon Peddie, President of JPR, added, "Pent-up demand resulting from anomalously high prices will be satisfied in the coming years. High-End graphics cards (Add-In Boards) maintain MSRP well and can be sold as Mid-Range products for years after production. This may encourage manufacturers to aggressively stock High-End inventory levels to prevent what we saw happen since COVID-19 lockdowns were initiated."

Pricing and Availability
The Worldwide PC Gaming Hardware Market report series by Jon Peddie Research which covers 33 countries, notebooks, desktops, DIY, and accessories, comes in three versions: Entry-Level, Mid-Range, and High-End, with a subscription price of $27,500 including a global summary. Subscribers receive all reports twice a year. Reports are also available by segment at $8,250 per issuance.

View at TechPowerUp Main Site

 

[InVasMani]

I'd argue it's less the covid pandemic and more the cryptocurrency epidemic. The reality is covid only contributed to the root issue that was already taking place and growing worse over time.

 

[AnarchoPrimitiv]

I'd like to upgrade my 5700xt to a 6800/6800XT once RDNA3 is released, that'd be affordable

 

[defaultluser]

I'd argue it's less the covid pandemic and more the cryptocurrency epidemic. The reality is covid only contributed to the root issue that was already taking place and growing worse over time.

Well, if Etherium goes proof-of-stake by the end of the year, we can expect a momentary drop in new mining PC demand (at least a year for them to find the next profitable coin)

The current GPU owners may end-up selling a large portion (to fund more ETH stake)

 

[neatfeatguy]

Just a couple random thoughts rattling around my head....

Big wigs are starting to have some kick back from mining groups in China maybe?
Miners are reneging on bulk purchases so now Nvidia (and possibly AMD) and AIB distributors have more inventory to get out to the actual retail community?

 

[dirtyferret]

Miners are buying up all the graphic cards creating a demand that supply can't handle resulting in record prices (and profit).
Nvidia & AMD response; F!@# the PC gamers, look at these prices & profits! We need to look out for our stock price & shareholders first!

Miners stop purchasing graphic cards and begin to flood the market with used video cards.
Nvidia & AMD response; We have always been committed to the PC gaming community as they are the heart and soul of our company. Please don't let our stock price drop!

 

[TheinsanegamerN]

I'd argue it's less the covid pandemic and more the cryptocurrency epidemic. The reality is covid only contributed to the root issue that was already taking place and growing worse over time.

It's both. Computer parts are far fromt he only thing in short supply, and things like lumber and aluminum cans are in no way related to computers.

The shutdown and constraints of supply lines take months to show up and months more to straighten out. We all knew that serious distruptiosn would occur when the whole world panic stopped for months on end.

 

[InhaleOblivion]

I'd like to upgrade my 5700xt to a 6800/6800XT once RDNA3 is released, that'd be affordable

You and me both. I refuse to pay more than MSRP. Never have, never will.

 

[eidairaman1]

I hope mining gets killed

 

[InVasMani]

They will just come up ways to better legitimize it despite the damage already heavily inflicted by it over a short period of time.

 

[defaultluser]

They will just come up ways to better legitimize it despite the damage already heavily inflicted by it over a short period of time.

Well hopefully proof-of-stake transition will make these GPU rushes seasonal?

I would hope most Eth miners would like to sell a number of their cards for more initial stake (there is currently no coin as onsistently profitable, so they might be tempted to dump hardware!)

we will see if this produces a cycle for all future alt-coins (become big, then go proof-of-stake)