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Why are GPUs so expensive?

people need to realise the majority should never be able to afford top end products in a capitalist world. they shouldn't even be able to afford mid-end.

if you look at cars - most people are driving low or low to mid end. most are driving second hand. hardly anyone is buying bugattis.

do people complain they cannot afford a bugatti?


Comparison with luxury goods isn’t valid, this is mass produced consumer electronics not a McLaren F1
Thread beginning to smell like rich snobbery, i can afford this so why should poorer people be able to afford it too. That's all I'm picking up on here.
 
I am expecting the 3070 FE's to cost £400-£500. Crazy amount, but I think their research will probably show that it is a new sweet spot for maximum profits.

Well I picked up my 1080Ti for £580 just a tad after it was launched in July 2017, so that could line up just right.

I know the 1080Ti was the only card genuinely worth the cash if you watch that video I posted it's the only one to significantly justify the hike in price for the performance in comparison. The only reason it was so powerful was due to AMD releasing a trailer announcing their next launch was TWICE THE POWER so NVidia launched the 1080Ti with twice the power only to later find the AMD launch card couldn't actually live up to the claim. Hence the later increase in price and then the demand from miners causing yet another increase.
 
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I just looked at a review of the Titan RTX.

So, why aren't all these e-ballers running the $2500 cards? They are faster than the 2080Ti, but I guess they just have to "get what they can afford."

..couldn't possibly be that the performance increase isn't worth the money?

No, the only reason someone doesn't buy a Titan RTX is because their broke @$$ "can't afford it."

Right?
 
I just looked at a review of the Titan RTX.

So, why aren't all these e-ballers running the $2500 cards? They are faster than the 2080Ti, but I guess they just have to "get what they can afford."

..couldn't possibly be that the performance increase isn't worth the money?

No, the only reason someone doesn't buy a Titan RTX is because their broke @$$ "can't afford it."

Right?
Not worth the money, just like the 2080 Ti ain’t worth the money either. 2-3 times the cost for 30% extra performance. Got to be having a laugh. Only card worth buying right now is the 2070S and even that should have been £399 for Black Friday sales imo.
 
Well I picked up my 1080Ti for £580 just a tad after it was launched in July 2017, so that could line up just right.

I know the 1080Ti was the only card genuinely worth the cash if you watch that video I posted it's the only one to significantly justify the hike in price for the performance in comparison. The only reason it was so powerful was due to AMD releasing a trailer announcing their next launch was TWICE THE POWER so NVidia launched the 1080Ti with twice the power only to later find the AMD launch card couldn't actually live up to the claim. Hence the later increase in price and then the demand from miners causing yet another increase.

Yea, that was a good price for that card in 2017. Now Nvidia want double that or more for their 2080Ti. It’s a joke. I don’t care for the car analogy being made, not everything can be simply compared like that. If we go down that lane soon the Titan series will be sold by Gibbo for ONLY £9999! Then 3080Ti for ONLY £4999. Want a 3080? ONLY £2999! Oh and best price for performance 3070, ONLY £1999!!!
 
https://en.wikipedia.org/wiki/Price_elasticity_of_demand

Nvidia are just working out how to maximise profits. If demand was to go down or there was more competition, price would come down. Their profit margins are plenty big, they can lower prices a lot and still make a profit, but it would be a less profit overall. They will continue to do what they think will make them maximum profits. They still have plenty market share and unless AMD start to eat into that, the status quo will continue.

My prediction is prices will not go up with the 3000 series, but they won't go down by much either unfortunately. I am expecting the 3070 FE's to cost £400-£500. Crazy amount, but I think their research will probably show that it is a new sweet spot for maximum profits.


The most sensible post in this thread.

AMD and Nvidia try to maximize profits and the market sets the acceptable price points.
 
The most sensible post in this thread.

AMD and Nvidia try to maximize profits and the market sets the acceptable price points.
It might be sensible, but does not mean I have to like it :p

Also I am glad you finally agree with me that Nvidia have huge margins currently ;)
 
They don't have huge margins, as I have proven to you several times before with hard evidence.
https://ycharts.com/companies/NVDA/profit_margin

Merely, Nvidia has healthy financials and reaches industry standard margin goals.
That does not break down what profit margins are on their RTX cards. Look at how the percentage change so much from quarter to quarter, does the price of RTX cards change like that? You are showing me financials for the whole company. Now I have not looked into their other endeavours, but any other weak performing sections of the company could have an impact on those figures. Way too many factors influence those numbers.
 
That does not break down what profit margins are on their RTX cards. Look at how the percentage change so much from quarter to quarter, does the price of RTX cards change like that? You are showing me financials for the whole company. Now I have not looked into their other endeavours, but any other weak performing sections of the company could have an impact on those figures. Way too many factors influence those numbers.


The gaming GPUs have much lower margins than their HPC and professional products. E.g., the Titan Volta sold for 12K a pop. So yes, product margins on RTX cards will be even lower.
Moreover, GPUs represent about 85% of Nvidia revenue, so the effects of other products is small, and any effect there is would be to increase profit margins.
 
The gaming GPUs have much lower margins than their HPC and professional products. E.g., the Titan Volta sold for 12K a pop. So yes, product margins on RTX cards will be even lower.
Moreover, GPUs represent about 85% of Nvidia revenue, so the effects of other products is small, and any effect there is would be to increase profit margins.
Lol. You really like to paint a picture don’t you D.P?

Not going to bother continuing this conversation as clearly as always it shows you will go to any lengths to make nvidia look good. Waste of my time, just like it is bothering debunking 4K8K’s posts. He does not learn or relent and carries right on :p

I am sure people reading this will have more sense than to believe your narrative which is that nvidia have very small profit margins on RTX cards. Poor Nvidia, they run on such low margins that if AMD were to reduce prices Nvidia would go out of business before long :(:p
 
Thread beginning to smell like rich snobbery, i can afford this so why should poorer people be able to afford it too. That's all I'm picking up on here.

Well how else do you expect a thread where people are saying that luxury goods are too expensive to go?

Just nobody was called out on it before.

If you can't afford it don't buy it. That's the problem with this generation they want everything now.

Leased cars, fancy homes, top end gpus, etc.

There is a guy in my street living with parents who is driving a £50k car. I can gaurantee you in 10 years time he will be complaining about not being able to afford a home and waiting for his parents to die.

People need to live within their means and make sensible purchases. It's not as of gpus are even that expensive. I mean I have mates who spend £600 on a golf club. He plays golf 200 times a year. If you are a gamer spending £430 on a 2070 super to game on 200 times a year is also nothing.

If anything gamers have had it easy with all the competition. I can't believe my cpu only cost £190. I have never seen a chip this good at this price point brand new and I owned the 2500k.

GPU's are still good value for money if you buy sensibly. Like I said before just game at 1080p and get a 1660 super.

It's all the people who have bought 1440p and higher that are complaining. They just need to sell up if that can't afford a 2070.
 
Thread beginning to smell like rich snobbery, i can afford this so why should poorer people be able to afford it too. That's all I'm picking up on here.
Thread is also beggining to smell like a ********* convention! So much crying over people who 'dare I say' work hard and buy what they have worked hard for. People I work with buy new cars, bigger houses, etc etc. I tend to buy hardware and go to the pub at the weekend quite a lot.
 
Thread is also beggining to smell like a ********* convention! So much crying over people who 'dare I say' work hard and buy what they have worked hard for. People I work with buy new cars, bigger houses, etc etc. I tend to buy hardware and go to the pub at the weekend quite a lot.
If people want to buy the (overpriced IMO) high end GPUs it's up to them.. just his post saying most "shouldn't even be able to afford mid-end" stuff seems a bit much and comes across as if talking down to people with less money. Cars are completely different, don't see how a comparison can be made. I don't have anything else to say so I'll just leave it at that.
 
https://en.wikipedia.org/wiki/Price_elasticity_of_demand

Nvidia are just working out how to maximise profits. If demand was to go down or there was more competition, price would come down. Their profit margins are plenty big, they can lower prices a lot and still make a profit, but it would be a less profit overall. They will continue to do what they think will make them maximum profits. They still have plenty market share and unless AMD start to eat into that, the status quo will continue.

My prediction is prices will not go up with the 3000 series, but they won't go down by much either unfortunately. I am expecting the 3070 FE's to cost £400-£500. Crazy amount, but I think their research will probably show that it is a new sweet spot for maximum profits.

Your logic has one flaw. AMD competes atm, yet people still buying overpriced Nvidia products.
AIB RX5700 can be bought new for £250 and RX5700XT for £299. Yet there are people in this very forum the last 7 days, trying to justify why bought inferior cards from Nvidia. Like the GTX1660S instead of a 5700. Both cards at same price point yet 5700 is 50% faster. Few years back everyone would be laughing, now they avoid the discussion like the plague.

RX570 is still been outsold by more expensive inferior products for years also.

So has nothing to do with competition or AMD.
 
Thread beginning to smell like rich snobbery, i can afford this so why should poorer people be able to afford it too. That's all I'm picking up on here.

When the "Ray Tracing" apologisers run out of arguments on a recent discussion, when I criticized the practice that companies like DICE culled the standard reflections on BF5 to make RT reflections look better (posting DICE own words also), many in here ended up with the answer "you are toxic because you cannot afford a RTX2080Ti".

That says it all. Cannot make a logic argument in this forum, which is becoming like WCCFTECH. Some times I wonder if handful of people are getting paid by Nvidia tbh, because their arguments are illogical as a consumer, but not if they are shills.
 
If people want to buy the (overpriced IMO) high end GPUs it's up to them.. just his post saying most "shouldn't even be able to afford mid-end" stuff seems a bit much and comes across as if talking down to people with less money. Cars are completely different, don't see how a comparison can be made. I don't have anything else to say so I'll just leave it at that.
To be honest, I don't personally care what anyone runs. There was a time when my two girls were young, I couldn't afford the top end and had to make do with low/middle stuff and was just as happy gaming. If people choose to buy a Titan, fair play, if people choose to buy a second hand HD 480, fair play. All that matters to me is that people enjoy their gaming time and with whatever they choose to use.

I must admit I find it harsh when people have a go at others who choose this or that. I do cringe reading some posts and the bottom line is, we all game and I doff my cap (if I was wearing one) to those that are happy with their hardware.
 
If people want to buy the (overpriced IMO) high end GPUs it's up to them.. just his post saying most "shouldn't even be able to afford mid-end" stuff seems a bit much and comes across as if talking down to people with less money. Cars are completely different, don't see how a comparison can be made. I don't have anything else to say so I'll just leave it at that.

Assuming that people who don't buy an expensive part "just can't afford it" seems rather ignorant to me. If it's an attempt to to talk down to people with less money, refusal to buy an expensive component is not enough information to conclude *why* someone didn't buy said part.

As I asked before: why don't all these e-ballers have Titan RTX's? is it because they "can't afford" the Titan RTX? I don't know the breakdown but I doubt there are zero 2080TI owners who lack the funds to buy the $2500 card. I bet that there is a portion of 2080Ti owners who have the money but simply don't think the small performance increase is worth the $2500.

Some of the "you just can't afford it" attitude could just as well be projection, where someone overextended themselves to attain what they believe to be a status symbol and get defensive when people suggest they are unimpressed with the status symbol they strained so hard to acquire.

 
4K displays (which have been around for ages now) demand current top end GPUs because Nvidia have basically engineered it that way. If a 2070 performed at the same rate as say 2080Ti with the later going much faster than it does today I don’t think we’d be having this argument.

You could argue that you shouldn’t use 4k then and tbh a few years ago I would see that PoV, but what’s effectively happened over the past few years is unjustifiable price inflation due to **** poor perf gains. They got away with it because people and journalism allows them to get away with it by not call it out.

The in escapable facts are price/perf generationally was terrible with the 2000 series, and we were sold RTX to compensate for the gap but also asked to cough up a price inflation to keep match Nvidia’s profit aspirations. Nvidia basically shifted everything up one tier in terms of pricing whilst giving next to nothing in return. Some people tolerate that, others are forced into it due to the need to upgrade or replace but how do you defend that as a consumer it’s really not good for anyone other than shareholders.
 
Not worth the money, just like the 2080 Ti ain’t worth the money either. 2-3 times the cost for 30% extra performance. Got to be having a laugh. Only card worth buying right now is the 2070S and even that should have been £399 for Black Friday sales imo.

What's wrong with them being "Not worth the money"?

I can't think of any product that doesn't have a luxury version that's affordable to an average person. Even something simple like a biro, there's an expensive Parker that's not worth the money. Expensive jeans, trainers etc. Every product sector has a rip off high end that only the rich buy. Even something trivial like Christmas crackers, that's high end versions with expensive toys that make no sense for ordinary people to buy.

Nvidia aren't a charity, what's wrong with releasing some stupidly high end products that makes no sense to ordinary people like me? I don't see what the problem is.

The problem I have with Nvidia is the low end. The 1660 is kind of entry level and it's a lot of money for an entry level product.

The 2080ti could be £10,000 for all I care. They just need to release more products to fill the gaps. Perhaps start the 1660 at £129.99 and then maybe have the next card up priced at £179.99 etc and eventually you end up at the high end £10,000 model.
 
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