GPU price inflation over the last decade

[DarkBahamut]

The problem with inflation for computer components is that the prices are very dependant on the market conditions in the moment. Prices do trend upwards over the long term, but you do get ebbs and flows. Like some part comes out at an unexpected low price and it then gets used as a benchmark for what everything should cost going forward. Personally, I don't think current RRPs are outwith what I'd expect. Of course the street pricing (and halo products) are a law upto themselves, but the RRP for the normal high end parts is reasonable to me.

It feels like you always see comments of people thinking high end cards should still be £400 for some reason. I remember paying £400 for a GPU (Geforce 8800 GTX) and £450 for a CPU (Athlon X2 4400+ - Not even the top model!) some 15+ years ago. I'm not sure why people expect high end parts to still be those prices today!

 

[Quartz]

A key factor is that there's no competition on price. Demand exceeds supply so suppliers can charge what they think the market will bear. I have high hopes of the next few years: with Intel entering the fray the supply problems should vanish and we should see prices trending downwards.

 

[Aretak]

Smaller nm sizes are costing more and more to produce. 28nm was the cut off point. Up until 28nm, the higher price of each new wafer was off-set by the higher yield of chips that can be sold per wafer. That's not the case anymore. The price has to go up beyond inflation.

Nvidia's gross margin has gone up and up and up over the past decade, with the last quarter being the highest in company history. That's margin, not revenue. The idea that they're just pricing things higher in line with increased costs is corporate bootlicking at its finest. They're making far more on every sale of a 3080 Ti than they did on a 780 Ti. And hey, that's capitalism for you and that's why these companies exist, but the fact that people like you and the guy below you try to play this off as poor little corporations simply struggling to get by is vomit-inducing. At least be honest about the system you love and defend.

 

[Oblivion007]

A key factor is that there's no competition on price. Demand exceeds supply so suppliers can charge what they think the market will bear. I have high hopes of the next few years: with Intel entering the fray the supply problems should vanish and we should see prices trending downwards.

I hope so. However, Intel aren't exactly known for their competitive pricing given how they rinsed customers over the last decade or so when they had no competition. I do agree that any competition is good for market conditions though.

 

[jaybee]

Gone are the days where you could put together a decent enough gaming base unit for £700. That might buy you just a mid spec GPU now if you can find one.

 

[Joxeon]

At the time it was still cutting edge technology in terms of GPU manufacturing and also the best picked silicon. So for example why weren't they charging £1000 for a GTX580, £700 for a GTX570 and £500 for a GTX560 back then?

I think people were more sensible a few years ago and would refuse to pay it but now it seems this newer generation that were brought up with a silver spoon has entered the space and can't bare to miss out no matter the cost.

 

[KompuKare]

A key factor is that there's no competition on price. Demand exceeds supply so suppliers can charge what they think the market will bear. I have high hopes of the next few years: with Intel entering the fray the supply problems should vanish and we should see prices trending downwards.

Since Intel are using TSMC, how is the supply going to increase?

Yes, they might have increased their TSMC orders but they still have to compete with the consoles, phone SoCs and so on.

As for process prices having gone up. Well, yes they have and the last node to offer any substantial increase in transistors/$ was 28nm, but at the same time margins have gone through the roof. Nvidia's margins are now at almost 70% and they are totally fabless. (Intel are in the mid 50% and AMD in the mid 40%.)

In fact, since costs to design have gone up hugely I'd say high volumes are actually needed. So priced to sell. Well, except consoles are using up such a large amount of TSMC's capacity.

 

[CuriousTomCat]

I wonder if mankind will ever learn to vote with their wallet and refuse to buy these overpriced GPUs?

At the moment, Nvidia obviously think you're very happy with the pricing.

I remember when people voted with their wallets against poll tax. People don't vote for change these days.

 

[ASMB]

If Intel production of a gpu takes away from Nvidia and AMD the ability to book production of a gpu at TSMC, then no it isn't go to increase gpu production. However, we can hope that Intel production is on top of what Nvidia and AMD have booked, with luck we could get over supply and a price war

 

[harmattan]

We're playing this game are we?



between £587 and £633 today apparently (depending which calculator used), which is basically what I paid for my 6800 11 months ago

£330 was insanely expensive compared to the US MSRP. I paid $450 for my 1900xtx back in 2006, and pound:dollar was around 1.9 at the time. That card should have cost more like £240. The UK purchasing parity is bad now, but geez, are these the prices you guys used to have to pay back then?

But yeah, prices nowadays are absolutely bananas, even with cost inflation considered.

 

[CuriousTomCat]

You guys are talking about £330 GPUs like they were a bargain in 2006 etc. I paid £99.99 for a Radeon 5770 in 2011. I never bought overpriced GPUs back then and I'm not going to start now.

 

[Haggisman]

You guys are talking about £330 GPUs like they were a bargain in 2006 etc. I paid £99.99 for a Radeon 5770 in 2011. I never bought overpriced GPUs back then and I'm not going to start now.

£330 is the ex. VAT price

Yeah, that card was absolutely overpriced, no excuses here... What can I say, I was young, stupid, and had a student loan burning a hole in my bank account

 

[pagepack]

Between 2001 and 2009 I updated my gpu every year, all top tier cards. Ati were really pushing Nvidia, as AMD are now. Only without the insane prices. I look at the prices now and wince. I can afford, but can't stomach being bent over for even a mid range card.

 

[arknor]

Yep, nowadays PC gaming is a bloody rip off no matter what people say.

It''s insane that gaming was cheaper when it was niche..
anything to do with gaming has a big idiot tax on it now, yet were told capitalism should mean things get cheaper as demand increases...... when in reality they see they can just milk more profit margins out of people

30jun 2015
MSI GeForce GTX 980Ti £599.99 (thats release month)
look how NVDA profit margin changed as prices went insane, 2015/2016 is the last time GPUs were anywhere near reasonable

Thats Net profit btw.......

yea all their revenue isn't from GPU's but still it's clear that they decided to up the profit margin the company makes.

seems to be a trend with most companies

 

[_Cereal_]

It''s insane that gaming was cheaper when it was niche..
anything to do with gaming has a big idiot tax on it now, yet were told capitalism should mean things get cheaper as demand increases...... when in reality they see they can just milk more profit margins out of people

30jun 2015
MSI GeForce GTX 980Ti £599.99 (thats release month)
look how NVDA profit margin changed as prices went insane, 2015/2016 is the last time GPUs were anywhere near reasonable

Thats Net profit btw.......

yea all their revenue isn't from GPU's but still it's clear that they decided to up the profit margin the company makes.

seems to be a trend with most companies

You are spot on yet you see even on this very thread people with all kinds of Mental Gymnastics trying to justify it, meanwhile Nvidia had financially their best year ever and their profit margins are stupidly high.
fanboys will be fanboys I guess.

 

[Calin Banc]

It''s insane that gaming was cheaper when it was niche..
anything to do with gaming has a big idiot tax on it now, yet were told capitalism should mean things get cheaper as demand increases...... when in reality they see they can just milk more profit margins out of people

30jun 2015
MSI GeForce GTX 980Ti £599.99 (thats release month)
look how NVDA profit margin changed as prices went insane, 2015/2016 is the last time GPUs were anywhere near reasonable

Thats Net profit btw.......

yea all their revenue isn't from GPU's but still it's clear that they decided to up the profit margin the company makes.

seems to be a trend with most companies

A lot of this insanity comes from crypto. Some GPUs are more productive than others, but depending on their price, as long as a GPU can bring in money, it will be bought, so ramping up productions means nothing. Just more GPUs for the miners.

Sure, there are some people that will pay a lot which are not primary miners (but can mine on the side, so don't really care about buying prices), some that are complaining but still buying, some that just don't care and plenty who will just wait or move to consoles (in time).

yet were told capitalism should mean things get cheaper as demand increases

Only up to some point. Where there is more demand that offer, price will go up - and scalpers appear. This can be offset somewhat if people would just not pay the "rip off tax", but hey... everyone does what he/she wants with their money!

 

[AiiR]

I bought my Vega 56 for £300 in 2018 and thought I overpaid..

I could now flog it for over £500 according to sold listings

 

[Secret_Window]

The best value gpus I bought over the years were:

Sapphire ATI Radeon 9800 Pro 128MB - £149
BFG NVIDIA GeForce 8800 GTS OC2 - £219
GIGABYTE HD 7950 WindForce 3X OC - £239
GIGABYTE GTX 970 G1 Gaming - £274

 

[NZXT30]

I hope so. However, Intel aren't exactly known for their competitive pricing given how they rinsed customers over the last decade or so when they had no competition. I do agree that any competition is good for market conditions though.

It took AMD one round of dominance to become the new Intel with overpriced CPUs. There are no good or bad corporations. Only profit matters and how strong the competition is.

 

[Calin Banc]

It took AMD one round of dominance to become the new Intel with overpriced CPUs. There are no good or bad corporations. Only profit matters and how strong the competition is.

Yup, funny enough, people find excuses for that as well.