A few days past, it came to light that both NVIDIA and AMD were planning to reduce the pricing for their ‘Ampere‘ and ‘RDNA 2′ GPUs. However, even such reductions have not led to a decrease in the pre-existing inventory that both giants have piled up.
Round 2 Of Price Cuts
Mydrivers reports that NVIDIA and AMD seemingly have decided to further lower the prices for their GPUs. All AIB partners are ready to take required measures. Basically, the stock didn’t clear out as expected because in many regions the pricing is still going through the roof.
According to the latest news from Taiwan Economic Daily, the industry’s destocking is not as good as expected. Graphics card manufacturers will start a new wave of price cuts from September, mainly NVIDIA and AMD products, and the price cuts will far exceed the previous efforts, which can be better to alleviate cost pressures.
A Final Attempt To Sell Off Last Gen
A couple of days back, news surfaced that GPUs are now currently at 90% of their original MSRP. You can read more about this here. However, even this does not suffice.
Even Jensen Huang had his say on the current situation. He pointed out that the current issue is international pricing. The US and China may see price cuts, however, this does not always transfer to other countries.
The More, The Better?
This situation will only get worse for NVIDIA because currently their next-gen GPUs are in production. Team green will have to bear some losses in order to provide gamers with the next-gen adernalin they need and desire. Of course, even from a ‘business’ perspective, the current price tag for Ampere is not going to last very long.
A Possible Solution
NVIDIA may only announce the $800+ Lovelace GPUs this year (4080?, 4090, 4090Ti). So the $800–2000 territory can be taken over by Lovelace, coincidentally fulfilling the demands of the hype train. The sub $800 category may be full of Ampere GPUs such as the 3090 Ti, providing those on a budget a bang for the buck deal.
- $800-$2000 Price Range = Lovelace (RTX 4000)
- <$800 Price Range = Ampere (RTX 3000)
What this does is it effectively brings forth the new generation while making sure NVIDIA doesn’t run into any ‘massive’ losses.