Soldato
- Joined
- 19 Oct 2008
- Posts
- 6,065
GTX980 is far cheaper to manufacturer than 780Ti though, smaller die, smaller memory bus, less cooling/power requirements. I suppose you could say NVidia are just reaping the rewards for R&D improvements but they have probably made insanely good profits out of it.
I think nVidia profits from PC graphics cards was down last quarter before the arrival of the Titan X (think that arrived towards end). And yes, money made on R&D improvements has to have some reward especially if it's ahead of the competition.
It's a bit like houses. If two houses are next to each other and the second one is nicer but actually cost the builder less to build than the first for whatever reason, would it be higher priced than the first, the same, or lower? I reckon as it;s a nicer house it would be priced higher regardless of how much it cost to build - as people will want the better house over the other.
Not sure if great analogy

But all free markets are supply and demand driven.
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