Nvidia is asking graphics card retailers to prioritize gamers over miners

[midian182]

We know that demand from cryptocurrency miners is a huge factor behind the incredibly high graphics card prices we see right now. In an attempt to combat this phenomenon, Nvidia is asking its retail partners to limit the maximum number of GPU sales to two per person.

In our feature ‘Why building a gaming PC right now is a bad idea, Part 2: Insane graphics card prices,’ we explain that the surging profitability of cryptocurrencies, which are still being mined in record numbers despite the recent crash, is likely the biggest contributing factor to the sudden hike in GPU pricing.

Many cards are currenly on sale at more than double their MSRP. The GTX 1060 6GB, for example, has an average asking price of $530, up from $250, while the GTX 1070 is a whopping $890, almost two and half times more than its $380 MSRP. Moreover, some online retailers are trying to take advantage of the mining craze by selling graphics card bundles—again, at a much higher MSRP. Newegg is selling six GTX 1080 Founders Edition cards for $6699.

	MSRP	April 2017	Nov 2017	Current (1/15/18)
GeForce GTX 1050 Ti	$140	$150	$160	$190
GeForce GTX 1060 3GB	$200	$220	$235	$410
GeForce GTX 1060 6GB	$250	$280	$310	$530
GeForce GTX 1070	$380	$420	$470	$890
GeForce GTX 1080	$500	$560	$590	$940
GeForce GTX 1080 Ti	$700	$755	$740	$1200
Radeon RX 560	$100	N/A	$130	$140
Radeon RX 570	$170	$190	$250	$540
Radeon RX 580 8GB	$230	$260	$310	$660
Radeon RX Vega 56	$400	N/A	$450	$670**
Radeon RX Vega 64	$500	N/A	$505	$800**

** Out of Stock

In a comment to German-language site ComputerBase.de, Nvidia stressed that it isn’t happy about the situation, and that the company values its target market of gamers above all others.

For NVIDIA, gamers come first. All activities related to our GeForce product line are targeted at our main audience. To ensure that GeForce gamers continue to have good GeForce graphics card availability in the current situation, we recommend that our trading partners make the appropriate arrangements to meet gamers’ needs as usual.

Selling no more than two graphics cards per order isn’t something that Nvidia can force on retailers; it’s only a suggestion. But the company is also trying to prioritize gamers by selling GPUs directly from its website.

While selling the cards higher than the suggested retail price might sound like good business for Nvidia, it knows that gamers are its core market—and a loyal one at that. Remember, Nvidia and AMD don’t own the semiconductor manufacturing plants that produce their GPUs, which are running at near or total capacity as it is, and they can’t just ramp up production in the short term.

Exactly how much of an effect Nvidia’s actions will have on GPU prices remains to be seen, as it will be down to the retailers to implement the changes. Still, at least it’s trying to do something.

Permalink to story.

https://www.techspot.com/news/72854-nvidia-asking-graphics-card-retailers-prioritize-gamers-over.html

 

[captaincranky]

Yeah but, wouldn't you imagine that retailers are in their glory, charging as much as they can get for these products, without the typical price pressure brought on by competition? Do you think Newegg is going to turn down, "free money", because they've, suddenly grown a conscience. To be fair though, they still seem to be on point, by keeping their price gouging just a bit less than their competitors.

See, a lot of people have tried to explain to me how, "supply and demand economics", isn't the same as, "price gouging". I must really be dense, since I still can't tell the difference. After all, part of the DDR-4 price skyrocketing, was brought on by manufacturers intentionally ramping DOWN production of it. (Obviously IIRC).

Since DDR-5 is "in the wind", so to speak, the price of DDR-4 may never go down, it will simply become a, "replacement part", and the price could stay right where it is. After which, the market price pressure will shift to the new parts.

Without a doubt, there is such a thing as a "tech junkie", and once someone is hooked, be it gaming or heroine, they'll spend as much as they have to, in support of their habit.

 

[davislane1]

Won't work. EVGA has had the 2 per customer limit for ages now. If you don't buy within a few hours of a card becoming available (power supplies now too), you're going to have to wait for the next batch.

 

[Uncle Al]

Just vote with your wallet ..... it always turns the tide ....

 

[ET3D]

After all, part of the DDR-4 price skyrocketing, was brought on by manufacturers intentionally ramping DOWN production of it. (Obviously IIRC).

IIRC the case is not that the ramped down production, just that they colluded to ramp it up more slowly than they could.

Just vote with your wallet ..... it always turns the tide ....

When there's just one party to vote for, voting doesn't do much good. What I mean is, if there are no cards on the market because miners gobble them up, saying 'I'll vote with my wallet and won't buy' is silly.

 

[yRaz]

Why don't you just increase GPU production to keep up with demand?

 

[cuerdc]

If/when crypto crashes will we see prices on cards crash also...

 

[Fobus]

A bit of joke really, if you go to their own website, it says out of stock for the vast majority of models...

 

[noel24]

Communism is coming back! I grew up in one, I would know. Why don't they just ramp up the production at TSMC? Cryptocurrencies crash? No way! Cryptocurrencies will never die. After the fall of subprime mortgages, it's a perfect next best tool for speculation.

 

[hahahanoobs]

Why don't you just increase GPU production to keep up with demand?

Kinda hard to keep up when miners are renting Boeing 747's to transport their cards...
These miners are not effing around. At all.
Come one man think. You can only produce so much at a time.

 

[hahahanoobs]

Just vote with your wallet ..... it always turns the tide ....

Wow....
How is this nVIDIA's fault? Have you even read the title? nVIDIA is trying to help us (gamers), and you're still flinging poo?
Wow....

 

[yRaz]

Kinda hard to keep up when miners are renting Boeing 747's to transport their cards...
These miners are not effing around. At all.
Come one man think. You can only produce so much at a time.

Got a source for that? Anyway, I'm a minor and I hate the GPU prices and shortage.

They need to increase production not tell people what to do with their products.

 

[Valis]

If/when crypto crashes will we see prices on cards crash also...

The secondhand market will probably then be flooded with dirt-cheap graphics cards

 

[Eddo22]

You can't increase production when your facility(s) is/are already working at 100%.

 

[senketsu]

From the article:
"Remember, Nvidia and AMD don’t own the semiconductor manufacturing plants that produce their GPUs, which are running at near or total capacity as it is, and they can’t just ramp up production in the short term.

 

[yRaz]

From the article:
"Remember, Nvidia and AMD don’t own the semiconductor manufacturing plants that produce their GPUs, which are running at near or total capacity as it is, and they can’t just ramp up production in the short term.

As an American it is my right to selectively choose what facts I think are real

*Screams and eats laundry detergent*

 

[captaincranky]

Wow....
How is this nVIDIA's fault? Have you even read the title? nVIDIA is trying to help us (gamers), and you're still flinging poo?
Wow....

No, Nvidia released a press statement saying, "they were trying to help us". To actually help, they would need their own fabs, and gamers would have to register to support their habit. In the same fashion they would have to register at methadone clinic, to support their heroine habit.

We have an opioid crisis here in the US. Part of that issue stems from people doctor shopping, and receiving multiple prescriptions for the same drug.

With video card purchases, while it would slow miners down if they had to shop for cards two at a time, it certainly wouldn't stop them.

They only thing that would stop them, is a "video card registry", after the fashion of a "prescription registry", whereby, all VGA purchases are maintained at a central location, and cross indexed for abuses.

EDIT: And you know what they say, "desperate times require desperate measures".

 

[Prosercunus]

I am doing fine with my GTX 970.

 

[hahahanoobs]

Got a source for that? Anyway, I'm a minor and I hate the GPU prices and shortage.

They need to increase production not tell people what to do with their products.

Why are you interested in tech if you don't know the basics?

 

[yRaz]

Why are you interested in tech if you don't know the basics?

I was talking about the 747's, I want a source for that.

And about knowing the basics? Well I moved up from Tide pods to blowing rails of Ajax bleach, so, please excuse me.

 

[captaincranky]

I....[ ]....And about knowing the basics? Well I moved up from Tide pods to blowing rails of Ajax bleach, so, please excuse me.

I think we should all join our voices in praise, admiration, and song, of your newly discovered path to pleasure and euphoria, my consciousness expanded immortal liege!

The next time you indulge yourself on the path to Nirvana, my Prince, I'll hope against hope you'll break me off a line or two!

 

[HonestTony]

I sold my GTX1080 last week for $750. And this week I have 2 GTX1070 6 Gigs memory cards each selling for $700! I'm firm with that price and in no rush if it sells or not. If they don't sell, I can always build a rig with dual 1070's for gaming on Steam!

 

[QuantumPhysics]

A 1080Ti costs more than a Titan Xp right now.

 

[captaincranky]

IIRC the case is not that the ramped down production, just that they colluded to ramp it up more slowly than they could...[ ]....

I actually thought that Samsung and others, as you say, "colluded", by shifting their emphasis to growing memory for SSDs. The article is somewhere in the Techspot archives. The net result is pretty much the same by both our accounts, and I really did just toss my post up, without a whole hell of a lot of research...

 

[yRaz]

The next time you indulge yourself on the path to Nirvana, my Prince, I'll hope against hope you'll break me off a line or two!

I have several rooms setup around my palace for just that purpose. A loyal servant such as yourself may indulge anytime without asking. And as a further reward for your loyalty you can help yourself to my various, uh, conjugal prisoners of questionable age. I also have a fine selection of goats in any gender recognized by the state of California if that's more your style!