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Nvidia reportedly raises GPU prices by 10-15% as manufacturing costs surge — tariffs and TSMC price hikes filter down to retailers (www.tomshardware.com)

submitted 2 weeks ago by [email protected] to c/[email protected]

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[–] [email protected] 20 points 2 weeks ago* (last edited 2 weeks ago) (1 children)

Translation:

We know the newest low end cards are a terrible upgrade(it's probably downgrade for many), so they wont sell and we want to make up the loss on our artificially bloated prices by increasing them even more.

I really wish Intel would move faster, so they and AMD can start competing for proper consumer GPUs. Because nvidia has clearly made up their mind that the AI market is the way forwards and it almost seems like they're trying to kill off their video game department by increasing prices and decreasing quality each generation.

[–] [email protected] 4 points 2 weeks ago* (last edited 2 weeks ago)

Unfortunately, it's quite difficult for AMD and Intel to make any big difference in the short term.

On the Intel GPU side, bluntly, they are far behind in tech, so they have to mitigate that with more aggressive pricing.

Don't believe me? Look at the process node they use and the die size of their chips, now look at the performance and power efficiency they get compared to similar node/die size Radeon or Geforce cards. That means Intel has to spend a lot more on manufacturing but can't charge anywhere near as much. In other words, they have to use more raw materials to make the same performance.

Intel doesn't make money from their GPUs yet. They literally don't want to sell too many cards because they generally lose money on each one sold. That's why their launch was a paper launch. They're spending right now to build expertise and expertise before doing a bigger push later.

On the AMD side, there's some good news in that their latest generation is pretty great and has massively outsold their previous generations.

The bad news is that even if AMD has doubled sales or whatever, they were already such a small part of the overall pie that Nvidia (85%+ of the market) shitting the bed isn't something AMD can suddenly fix.

It'd be like if all carmakers except Mazda shat the bed, Mazda can't suddenly expand and fix the market. They could increase it a bit, probably, but filling the orders that the VW or Toyota group usually do? Impossible.

Also, whenever there's excess demand for CPUs, AMD would prefer to service that market. It's far higher margin.