RDNA 3 rumours Q3/4 2022

varkanoid · 31 Oct 2022 at 12:02

stooeh said:
I'm sure there are plenty of other products out there with massive price gulfs dictated by brand power alone, I don't see what the big deal is here?

Just stepped in to see the latest chat in here and seems to be a Lidl Tomato Ketchup v Heinz Tomato Ketchup discussion at the moment.

Darujhistan · 31 Oct 2022 at 12:04

TNA said:
You already got given an answer by me and others, but you keep asking the same question over and over again

So what's the answser as to why AMD should price a very competitve product 40% cheaper?

Also what do you think happens to AMD sales when AMD lower prices by 40%, and NV lowers their prices in response to a similair level?

Hmmm, I wonder what happens to AMD sales....

People are just blinded by their desires to have cheaper GPU's that they can't see reality.

:cry:

Haggisman · 31 Oct 2022 at 12:06

I'm going to guess that even if Nvidia decided to set their MSRP at £5k, certain posters would still be accusing AMD of "giving their cards away" if they priced them at less than £4,950 :cry:

Darujhistan · 31 Oct 2022 at 12:07

I predict this, you won't be having your dreams come true with AMD giving away their cards so you can all buy NV cheaper. That's not how the real world works and would be terrible strategy on AMD's part.

Joxeon · 31 Oct 2022 at 12:11

Darujhistan said:
So what's the answser as to why AMD should price a very competitve product 40% cheaper?

Because they actually want people to buy their product.

Nexus18 · 31 Oct 2022 at 12:17

Good timing this discussion, seems other people get it too....

inb4 "nvidians", "mindshare" etc. :cry:

Haggisman · 31 Oct 2022 at 12:18

I mean it's pretty simple really - most people have a set budget for a GPU, so there are 4 possible permutations:

If AMD and Nvidia are both above that budget, no GPU gets bought.
If AMD are below budget and Nvidia are above budget, AMD GPU gets bought.
If AMD are above budget and Nvidia are below budget, Nvidia GPU gets bought.
if AMD and Nvidia are both below budget, the best option gets bought (unless AMD pull it out of the bag with RT and some kind of DLSS 3.0 competitor then this is Nvidia).

Only 1 permutation leads to a sale for AMD.

KompuKare · 31 Oct 2022 at 12:23

This thread is sure moving at a huge speed now!

Since 5nm isn't capacity constrained, I really do hope AMD come in with a truly aggressive price.

The only real constraint is that while any fancy packing being used may make the cards cheaper to produce compared to monolithic dies, TSMC & their packaging may not have sufficient capacity for huge quantities.

And that's before we consider the margins-at-all-costs stockmarket who still don't seem to have got the memo that we are almost in a global recession. Plus they have forgotten that while margins are nice, profit is margin times volume:

1,000 units at 65% margin
1,000,000 units 35%

the 2nd could easily make far more profit.

Darujhistan · 31 Oct 2022 at 12:24

Joxeon said:
Because they actually want people to buy their product.

So throw profit margin away, that makes great business sense! The naivete on display on this discussion is incredible!

:cry:

TNA · 31 Oct 2022 at 12:24

Haggisman said:
I mean it's pretty simple really - most people have a set budget for a GPU, so there are 4 possible permutations:

If AMD and Nvidia are both above that budget, no GPU gets bought.

If AMD are below budget and Nvidia are above budget, AMD GPU gets bought.

If AMD are above budget and Nvidia are below budget, Nvidia GPU gets bought.

if AMD and Nvidia are both below budget, the best option gets bought (unless AMD pull it out of the bag with RT and some kind of DLSS 3.0 competitor then this is Nvidia).

Only 1 permutation leads to a sale for AMD.

Yea but…

Darujhistan said:
Why should AMD sell 40% cheaper than NV?

Haggisman · 31 Oct 2022 at 12:25

Darujhistan said:
So throw profit margin away, that makes great business sense! The naivete on display on this discussion is incredible!

Darujhistan said:
Yeah they're really struggling for $$$$.

Frenzy · 31 Oct 2022 at 12:27

Going by their cpu pricing, I doubt they are going to make it significantly cheaper than nv

Darujhistan · 31 Oct 2022 at 12:30

So much hopium in this thread it's crazy.

:cry:

Darujhistan · 31 Oct 2022 at 12:31

KompuKare said:
This thread is sure moving at a huge speed now!

Since 5nm isn't capacity constrained, I really do hope AMD come in with a truly aggressive price.

The only real constraint is that while any fancy packing being used may make the cards cheaper to produce compared to monolithic dies, TSMC & their packaging may not have sufficient capacity for huge quantities.

And that's before we consider the margins-at-all-costs stockmarket who still don't seem to have got the memo that we are almost in a global recession. Plus they have forgotten that while margins are nice, profit is margin times volume:

1,000 units at 65% margin

1,000,000 units 35%

the 2nd could easily make far more profit.

Why don't NV do that then?

DanF · 31 Oct 2022 at 12:31

similar happened in the phone space as well, think it was Apple which yonked the prices up first then everyone else just followed wanting some of that sweet profit, now all the top end phones are basically around the £1k mark

Darujhistan · 31 Oct 2022 at 12:33

DanF said:
similar happened in the phone space as well, think it was Apple which yonked the prices up first then everyone else just followed wanting some of that sweet profit, now all the top end phones are basically around the £1k mark

That's just corporate reality. A lot of people in here don't want to accept that though.

Darujhistan · 31 Oct 2022 at 12:35

Haggisman said:
I mean it's pretty simple really - most people have a set budget for a GPU, so there are 4 possible permutations:

If AMD and Nvidia are both above that budget, no GPU gets bought.

If AMD are below budget and Nvidia are above budget, AMD GPU gets bought.

If AMD are above budget and Nvidia are below budget, Nvidia GPU gets bought.

if AMD and Nvidia are both below budget, the best option gets bought (unless AMD pull it out of the bag with RT and some kind of DLSS 3.0 competitor then this is Nvidia).

Only 1 permutation leads to a sale for AMD.

So why give your product away at a 40% discount, thanks for making my argument for me!

Haggisman · 31 Oct 2022 at 12:36

Darujhistan said:
Why don't NV do that then?

Because they have the better* product and they know people will buy them.

Why would someone buy an AMD card over an Nvidia card if they both cost the same, but the Nvidia card is significantly better/more feature rich?

Darujhistan said:
So why give your product away at a 40% discount, thanks for making my argument for me!

* some people's opinions on this may differ, but they objectively have better RT performance and more advanced upscaling tech

NZXT30 · 31 Oct 2022 at 12:37

Darujhistan said:
So what's the answser as to why AMD should price a very competitve product 40% cheaper?

Also what do you think happens to AMD sales when AMD lower prices by 40%, and NV lowers their prices in response to a similair level?

Hmmm, I wonder what happens to AMD sales....

People are just blinded by their desires to have cheaper GPU's that they can't see reality.

What other option does AMD have if nobody buys their GPUs? Their CPUs have been propping them up but sales seem to have dried up lately.

If they don't get some new revenue soon their earnings reports are going to be brutal and their stock will get smashed.

Darujhistan · 31 Oct 2022 at 12:37

Haggisman said:
Because they have the better* product and they know people will buy them.

Why would someone buy an AMD card over an Nvidia card if they both cost the same, but the Nvidia card is significantly better/more feature rich?

* some people's opinions on this may differ, but they objectively have better RT performance and more advanced upscaling tech

Not enough to make AMD give a 40% discount, outside of these forums 95% of gamers won't know what RT and upscaling are...