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What would you regard to be fair current gen prices?

Only seems good value because of lack of competition and also the fact tiers below barely moved the needle in improving price for performance.
It seems good because they compare it to 3090 also. An overpriced card that was a poor choice for gaming. Comparing it to 3080, there isn't much difference between 4080 and 4090.

Add on top the need to have the best in terms of CPU in order to actually get that performance and a decent power supply (so overall, more expensive system), and the allure of 4090 fades some more.

What 4090 did was consolidate a price level that was considered not long ago outrageous. Apply the same strategy with 5xxx and the green team is on a win.

GG Nvidia, you've played your cards right. :)
 
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Get real, if any manufacturing business ran on these sorts of margins they'd been gone in under a year! It might be what you'd like, but it's a million miles from reality.

According to this website the manufacturing sector net profit margin seems to be around the 6-10% range, with 10% seeming to be a good year if you look back a few years.


I think @Calin Banc was being generous in his margin estimates for cards.
 
According to this website the manufacturing sector net profit margin seems to be around the 6-10% range, with 10% seeming to be a good year if you look back a few years.


I think @Calin Banc was being generous in his margin estimates for cards.
That's refering to net profits in the business, not margins on sold items, but in order to generate profits of 6-10% you're going to need margins to be significantly higher. Remember, with today's interest rates companies could just put their money in the bank and earn ~4-5%. If they have no costs that's all profit, but they do have costs (hue costs in some cases), and they'll need to generate margins of ~30-50% to cover them. Profit is what's left at the end, but you measure profits for the business, not for the products.

Edit: I should clarify. They have a line for Gross Margin at the top. You'll see that historically for this sector they run around 30-40%, but the net profit (the bottom line) tends to run around 6-10%.
 
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That's refering to net profits in the business, not margins on sold items, but in order to generate profits of 6-10% you're going to need margins to be significantly higher. Remember, with today's interest rates companies could just put their money in the bank and earn ~4-5%. If they have no costs that's all profit, but they do have costs (hue costs in some cases), and they'll need to generate margins of ~30-50% to cover them. Profit is what's left at the end, but you measure profits for the business, not for the products.

Edit: I should clarify. They have a line for Gross Margin at the top. You'll see that historically for this sector they run around 30-40%, but the net profit (the bottom line) tends to run around 6-10%.
Pretty sure the chap who mentioned margins was including everything and was referring to net profits.
 
Pretty sure the chap who mentioned margins was including everything and was referring to net profits.
He said they should make 5-15% on low end and 20-30% for high end, e.g. referring to the margin on a product, not a profit for the business.

But anyway, I don't want to fight about it! People must understand that the function of a business is to make money, it's not a crime. A well-run business will make as much money as it can whilst keeping customers happy and satisfied. You could argue, and I would agree with you, that the GPU people have pushed things too far and are now straying into the realms of unhappy and unsatisfied customers because of perceived poor value and/or too high pricing. If this is the case we will see a correction in the form of reduced selling prices and/or significant performance improvements to justify the higher cost in new products, however if they continue to grow the sales despite the existing OcUK sentiment then prices won't change.
 
He said they should make 5-15% on low end and 20-30% for high end, e.g. referring to the margin on a product, not a profit for the business.

But anyway, I don't want to fight about it! People must understand that the function of a business is to make money, it's not a crime. A well-run business will make as much money as it can whilst keeping customers happy and satisfied. You could argue, and I would agree with you, that the GPU people have pushed things too far and are now straying into the realms of unhappy and unsatisfied customers because of perceived poor value and/or too high pricing. If this is the case we will see a correction in the form of reduced selling prices and/or significant performance improvements to justify the higher cost in new products, however if they continue to grow the sales despite the existing OcUK sentiment then prices won't change.
I said profit explicitly for the simple reason to leave out possible costs.
 
It's concerning the prices are holding so high months after release. I'm starting to think we'll have to wait for the mid gen refresh cards, which will take the silly prices and might drop the current cards down.

Agreed, I would have bet anyone 6 months ago we would see a 4080 at £999 by summer. I think there is an element here that they took such a battering in PR terms over the prices they aren't willing to let those margins go without a fight, I also seem to remember much of the rationale was to price the 4000 series above 3000 as there was so much stock to get through on last gen, they must surely have achieved that by now?
 
On the bright side, at least Crossfire and Sli has gone so we can't get properly rinsed. I do kinda miss it though ... it felt like a proper gamers rig when i had two R9 390's kicking out a racket and a bunch of heat ... happy days.
 
Agreed, I would have bet anyone 6 months ago we would see a 4080 at £999 by summer. I think there is an element here that they took such a battering in PR terms over the prices they aren't willing to let those margins go without a fight, I also seem to remember much of the rationale was to price the 4000 series above 3000 as there was so much stock to get through on last gen, they must surely have achieved that by now?

For the high end cards certainly, you don't see any 3080s or 3090s anymore, and very few 3070s. Plenty of 3060s to get rid of still though but releasing the 4060s has already made them obsolete.
 
4090 - £999
4080 - £799
4070Ti - £599
4070 - £449
4060Ti - £299
4060 - £199

I expect AMD's cards to slot in between Nvidia's:

7900XTX - £899
7900XT - £699
7600 - £179
 
I think "fair" prices are somewhere around 10-15% below what they are currently selling for. This would place a mid-range card (e.g. RTX4070) somewhere around the £500-550 mark. Considering that it's distant siblings (the RTX2070 for example) were retailing around £450-500 a few years ago this is a not-unrealistic current price given present levels of inflation.
The 4070 is not the same level of card a 2070 was though, the 4070 offers just 50% performance of a 4090 while the 2070 offered 68% the performance of a 2080ti. if you look at a card that offered 50% of a 2080ti back then it was the GTX1660 super at around 200 quid.
 
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