CPU and GPU Availability and Pricing Update: April 2021

EdmondRC

Posts: 104   +81
The shortages are likely the primary cause and the miners are inflating the prices. Bottom line is that if supply = demand then MSRP and perhaps even occasional sales like we have had in the past would be the norm. With the chip shortages and increased demand a perfect storm has occurred. The miners are driving up the prices because they believe they'll see a return on their investment so paying 2.5 - 3X for the GPU is not as big of a deal to them, whether or not that actually materializes in the real world. And of course, scalpers then see opportunity as well so demand goes up even more as scalpers are trying to get the cards at retail to resell them to miners. Until the chip shortage ends, it will not get much better.
 

Theinsanegamer

Posts: 2,399   +3,482
The shortages are likely the primary cause and the miners are inflating the prices. Bottom line is that if supply = demand then MSRP and perhaps even occasional sales like we have had in the past would be the norm. With the chip shortages and increased demand a perfect storm has occurred. The miners are driving up the prices because they believe they'll see a return on their investment so paying 2.5 - 3X for the GPU is not as big of a deal to them, whether or not that actually materializes in the real world. And of course, scalpers then see opportunity as well so demand goes up even more as scalpers are trying to get the cards at retail to resell them to miners. Until the chip shortage ends, it will not get much better.
Mining has always been a convenient scapegoat. The limits of 7nm production and all the different factors changed by the last year's politics were going to throw monkey wrenches into the works sooner or later.

Of course with nothing else to do I can understand people not being able to get their new toy being kinda pissed.
 

QuantumPhysics

Posts: 4,734   +5,144
The shortages are caused by just two things: Scalpers and Miners.

The miners buy these cards in large numbers. Now that SLI is dead, there ain't nobody wasting cash on multiple RTX GPU with the exception of miners. To a lesser extent, professional Youtubbers do, but they are an insignificant amount of buyers.

Scalpers know that both the gamer market and miners want cards, and they know that although the gamer market can't/won't afford the scalper's price, they can more than likely get that price from the miners who believe their crypto gains are worth it.

The Scalpers are the worst aspect of the GPU shortage, but the real culprit is the manufacturer who already knows their cards are being scalped and won't ship directly to individual buyers until the demand goes down.

I am so thankful to my local Microcenter manager who let me buy two 3090FTW3 when the store limit is 1. We have a personal relationship and I assured him I wouldn't be scalping with them. That MSRP of $1799 ($1955 with tax) seemed high then, but when you compare that price to the present, it's still a bargain.

My Microcenter got several 3070, 3080 and 3090 cards in recently and they sold out in just an hour or so.

I feel really bad for any entry-PC gamers because short of buying a prebuilt HP or Alienware, you ain't getting jack.
 

Achaios

Posts: 110   +326
The shortages are likely the primary cause and the miners are inflating the prices. Bottom line is that if supply = demand then MSRP and perhaps even occasional sales like we have had in the past would be the norm. With the chip shortages and increased demand a perfect storm has occurred. The miners are driving up the prices because they believe they'll see a return on their investment so paying 2.5 - 3X for the GPU is not as big of a deal to them, whether or not that actually materializes in the real world. And of course, scalpers then see opportunity as well so demand goes up even more as scalpers are trying to get the cards at retail to resell them to miners. Until the chip shortage ends, it will not get much better.

I too agree that Miners are 99% responsible for the historical upsetting of the GPU market and the historically high GPU prices.

The other 1% is supply issues, which are really minor as the CPU market has returned to normal, and infamous Evil Corps such as Mafia Scalpers international (TM) trying hard to make as many bucks as possible from the consumers.
 
If the distributors are bundling products for new GPUs, then they are violating basic antitrust laws against that practice. You should have your sources who say the distributors are bundling GPUs with harder to move products contact the DOJ antitrust division. It may not do much now, but hopefully it can get the ball rolling and prevent the practice in the future.
 

NightAntilli

Posts: 558   +661
The shortages are caused by just two things: Scalpers and Miners.

The miners buy these cards in large numbers. Now that SLI is dead, there ain't nobody wasting cash on multiple RTX GPU with the exception of miners. To a lesser extent, professional Youtubbers do, but they are an insignificant amount of buyers.

Scalpers know that both the gamer market and miners want cards, and they know that although the gamer market can't/won't afford the scalper's price, they can more than likely get that price from the miners who believe their crypto gains are worth it.

The Scalpers are the worst aspect of the GPU shortage, but the real culprit is the manufacturer who already knows their cards are being scalped and won't ship directly to individual buyers until the demand goes down.

I am so thankful to my local Microcenter manager who let me buy two 3090FTW3 when the store limit is 1. We have a personal relationship and I assured him I wouldn't be scalping with them. That MSRP of $1799 ($1955 with tax) seemed high then, but when you compare that price to the present, it's still a bargain.

My Microcenter got several 3070, 3080 and 3090 cards in recently and they sold out in just an hour or so.

I feel really bad for any entry-PC gamers because short of buying a prebuilt HP or Alienware, you ain't getting jack.
If it really is miners, explain the console shortages. Because no one is buying an Xbox Series X or PS5 to mine with it.
As for scalping, that only works when there is a supply constraint.
 

Neatfeatguy

Posts: 259   +353
Newegg "shuffle" is $hitty. Why the hell do I want to spend an extra $200-400 on a GPU + MB combo?

Forced to buy a MB (or some other piece of hardware) when you're only in need of a GPU is shitty. Sure, you can choose not to put your name in the hat for a chance to win an opportunity to purchase the GPU + other item, but you don't have to.....it is your choice.

However, it sucks when they offer what appears to be 10 different GPUs, yet 8 of them are tied to a stuid f'ing combo purchase. You want a chance for a GPU, that Newegg knows everyone is after, so they shove it up everyone's *** by forcing you to buy it in a combo....and you can't return the unwanted item, if you don't want it, for a refund. Only way to obtain a refund is to return all items from the combo.

I can stomach the roughly $700 cost of a 3070 they're selling, but when you click on the GPU in the shuffle and it's only offered with a MB combo and the price is now $1000+......what a joke. Newegg, you can shove all that crap up your asses....allupinyourass.
 

Theinsanegamer

Posts: 2,399   +3,482
I too agree that Miners are 99% responsible for the historical upsetting of the GPU market and the historically high GPU prices.

The other 1% is supply issues, which are really minor as the CPU market has returned to normal, and infamous Evil Corps such as Mafia Scalpers international (TM) trying hard to make as many bucks as possible from the consumers.
I dont recall products being constantly out of stock, with elevated prices, and general unavailability of higher end products as "normal".

Miners are also not buying consoles, yet those are constantly out of stock, nor are they buying car infotainment systems or ECUs, yet those are also short of suppy.

There is a serious supply problem, its not just the miners.
The shortages are caused by just two things: Scalpers and Miners.
I present to you: what happens when you dont read the article.
 

Stark

Posts: 174   +164
Well...
The AIB Raising Prices, is the same as when DRAM prices hit an all-time high from 2 USD $ to 8 USD $ some 2 years back, but resulted in significantly higher price in retail. Bottom line any excuse to mark up the price is used and such increase is never in ratio to the original hike.

The bundling issue is not with hardware but in any industry with distributor, even the producer/original manufactures bundle less in demand products with higher in demand products. I can name 10 different unrelated products especially in FMCG sector which have this shady tactics. Demand and supply my ***. Not only this, distributors try to bribe retailers with "gifts" (a new 65-inch Plasma anyone) to stock up their particular promoted product only. So nothing new there.

Other than that miners are just another group of customers creating demand, I may despise them, but my claim on a consumer product is not higher than theirs.

The problem is lack of competition. All these issues are somewhat mitigated with competition and better market supply.

Luckily I brought my 2060 Super as it was released and speaking truthfully I will not even upgrade till a hardware failure forces me to do so and even then if the prices are not normalized then I will settle for lower mid-range cause everything is significantly overpriced.
 

Theinsanegamer

Posts: 2,399   +3,482
Well...
The AIB Raising Prices, is the same as when DRAM prices hit an all-time high from 2 USD $ to 8 USD $ some 2 years back, but resulted in significantly higher price in retail. Bottom line any excuse to mark up the price is used and such increase is never in ratio to the original hike.

The bundling issue is not with hardware but in any industry with distributor, even the producer/original manufactures bundle less in demand products with higher in demand products. I can name 10 different unrelated products especially in FMCG sector which have this shady tactics. Demand and supply my ***. Not only this, distributors try to bribe retailers with "gifts" (a new 65-inch Plasma anyone) to stock up their particular promoted product only. So nothing new there.

Other than that miners are just another group of customers creating demand, I may despise them, but my claim on a consumer product is not higher than theirs.

The problem is lack of competition. All these issues are somewhat mitigated with competition and better market supply.

Luckily I brought my 2060 Super as it was released and speaking truthfully I will not even upgrade till a hardware failure forces me to do so and even then if the prices are not normalized then I will settle for lower mid-range cause everything is significantly overpriced.
Sadly it's a massively expensive infastructure focused industry to get into. GloFo even with their billions of investment couldnt keep up, and samsung is second fiddle to TSMC. Need I say more about Intel's issues lately?

The chinese fabs might be the only possibility of lower prices, but those are likely built on stolen tech and will be limited by what TSMC puts out plus another 5-6 years. And even then they are still limited by the EUV tech the americans can produce for said foundries.
 

imdarkbreeze

Posts: 74   +67
Oh. Nice.
You, and people like you and your buddy store manager are also part of the problem
Because of buying TWO cards? Yeah, that's REALLY disrupting the market. Under more normal circumstances, EVERY person who wants two graphics cards, regardless of what tier they are, would easily be able to obtain them.

Supply issues are 100% due to manufacturing shortcomings and MASS purchasers, not some lone individual who happened to buy two cards for actual usage.
 

Neatfeatguy

Posts: 259   +353
Because of buying TWO cards? Yeah, that's REALLY disrupting the market. Under more normal circumstances, EVERY person who wants two graphics cards, regardless of what tier they are, would easily be able to obtain them.

Supply issues are 100% due to manufacturing shortcomings and MASS purchasers, not some lone individual who happened to buy two cards for actual usage.

These people may not be part of the bigger problem, but they are a problem for everyone else that's waiting in line to get one GPU, but now they can't because buddy-buddy manager person held back items for his friends/family instead of allowing everyone in line a fair chance.

It is a problem, but not one that's going to impact the overall lack of product for the masses....just a problem for those few that get screwed out of their chance due to twats that pull this crap.

Then again, QP probably already had a 3090 that he used to game his way to the manager's heart to allow him to get a second one. QP can't go without posting in almost every post he makes about how awesome his 3090 makes his life. For all I know, it probably makes his car go faster and paint dry faster for him.
 

shark975

Posts: 17   +13
I would say you're ignoring another factor, the rush of covid stimulus money into the economy through various means. Think of just the last 1.9 trillion bill (remember there was 2.9 trillion before that), that was more than all the tesla stock and all the bitcoin in existence. Flowing into the economy, jacking prices and inflation through the roof. A few areas you can see this big time are housing and cars. I see 1300 sq ft new construction in my rural area going for 227k. Literally a few years ago 227k would have bought a large mcmansion around here. Every house sells almost the instant it hits the market. Been looking for a truck too, situation is almost similar. Hard to find any trucks and it seems like forget getting big incentives or a discount off MSRP. Used trucks are selling near their MSRP when they were new 5 years ago.

I think the MAJOR factor in GPU rises is pretty clearly coin mining BS. Miners are literally losing money by NOT snatching up cards at MSRP. That said Covid/Democrat stimulus inflation is a (smaller) factor as well. Price on everything is skyrocketing, all collectibles as well, you cant get any PS5/Xbox, etc.
 

envirovore

Posts: 151   +349
TechSpot Elite
Because of buying TWO cards? Yeah, that's REALLY disrupting the market. Under more normal circumstances, EVERY person who wants two graphics cards, regardless of what tier they are, would easily be able to obtain them.

Supply issues are 100% due to manufacturing shortcomings and MASS purchasers, not some lone individual who happened to buy two cards for actual usage.

That's two cards for him when policy dictates one.
He is the reason someone else there that day didn't get their card (and are probably still waiting to get one).

Now is one person doing this a huge issue? No.
No doubt he's not the only one that this policy has been bent for in stores though.
Enough to cause 1000's to not get the product they want? Doubtful.

Doesn't change that it's a scumbag thing to do, and then admit to, when it's well known there's a high demand, nor the fact that people doing this are part of the problem as well.

 

Neatfeatguy

Posts: 259   +353
I would say you're ignoring another factor, the rush of covid stimulus money into the economy through various means. Think of just the last 1.9 trillion bill (remember there was 2.9 trillion before that), that was more than all the tesla stock and all the bitcoin in existence. Flowing into the economy, jacking prices and inflation through the roof. A few areas you can see this big time are housing and cars. I see 1300 sq ft new construction in my rural area going for 227k. Literally a few years ago 227k would have bought a large mcmansion around here. Every house sells almost the instant it hits the market. Been looking for a truck too, situation is almost similar. Hard to find any trucks and it seems like forget getting big incentives or a discount off MSRP. Used trucks are selling near their MSRP when they were new 5 years ago.

I think the MAJOR factor in GPU rises is pretty clearly coin mining BS. Miners are literally losing money by NOT snatching up cards at MSRP. That said Covid/Democrat stimulus inflation is a (smaller) factor as well. Price on everything is skyrocketing, all collectibles as well, you cant get any PS5/Xbox, etc.
Don't forget that wood prices are up due the government locking things down and telling people not to go anywhere. So people stop footing bills into the economy for things such as going to the movies, shopping at stores (clothing and such things) and other entertainment aspects they used to do. Now they have time because they're at home since the government told them they weren't essential and not important enough to let work....they turn their time, energy and money to personal home projects/improvements.

* 2 - 4x8 sheets of plywood (almost $100 for the 2 sheets of plywood)
* 10 - 8ft 2x4 boards (nearly $75 for 10 2x4 boards) Home Depot last weekend
* I spent around another $40 for 32ft of chain, a box 3" long screws, box of lag bolts and enough washers for the bolts.

Around $230 after taxes just to put up some hanging shelves in the garage that the wife's been bugging me to do for the past few years.

My step-dad put up some of these in his garage about 2 years prior and he said it only cost him around $150 for everything. If he only spent $150, that's a 50% markup on wood from 2 years ago.

Townhouses in my neighborhood, they originally sold for $150K+, depending on overall model and additions. They have a square footage of 1250-1600, depending on model. The housing crash back in 2008 caused townhouses to plummet down to around $90K and it wasn't until about 5 years ago that the property value returned to the original sale price. Now these units are selling for $230K+ within days after going on the market.

Wife wants us to sell, thinks we can get around $250 since we have a top line model, new flooring we had recently put in, new cabinets and such.....but she doesn't realize that finding a house she likes, they are now overpriced by a ton. Houses that were in the $300K range 4-5 years ago are now in the $500K range. Our mortgage payment would go up by 50% easily if we moved and that would be even after putting a $100k down payment on a house.

Everything right now is so f'ing blown out of proportion cost wise that it sucks. It's not going to be that the economy won't recover, but soon it's going to be a bubble burst and things will come crashing back down. The economy cannot keep this pace for an extended period of time without it snapping back like a rubber band.
 

NoLifeDGenerate

Posts: 22   +8
If the manufacturers gave a ****, they'd make MSRP guaranteed like Xbox/PS5. Piss on demand. The stores/distributors shouldn't be playing with the prices to the ridiculous extent they are.