See point above - why should they price relative to a few years ago when it's clear the market has moved on and customers will pay a higher price?
(I'm not happy about this, just outlining the reality of it
)
Also, supply constraint is a thing! Why should they take lower profits when they know they can sell a lower volume of consumer GPUs at a high price/profit, and use the silicon capacity in servers for an even higher margin? (Fourth response down
here).
Their sales share is now at 10% and its quite clear their tactics are not working. That is their lowest sales share in the whole history of ATI and AMD. In the markets they sell they have way too much unsold inventory,which means they need to change tact.
If they continue trying to offer general worse products,with their only advantage being moar VRAM, then their share will be soon will be even less. With OEMs,no wonder they don't want AMD when:
1.)They keep delaying their products to see what Nvidia is offering.So zero time to market advantage for AMD over Nvidia.
2.)Charge almost the same amount as Nvidia,so hardly any cost advantage.
3.)Have not enough supply,so Nvidia ends up cheaper because of bulk discounts. You can get an RTX4070 Super for RX7800XT at system integrators for the same price!
4.)They are behind in software features and implementation of those features in games.
AMD are the budget brand relative to Nvidia. The same as their CPUs,until Zen3 came along where they beat Intel in most areas.
Nvidia spends far more than AMD,so this is how they have gotten to the position of dictating the market.If AMD wants to charge Nvidia prices,they need to spend Nvidia money on their graphics division.
As their sales share plummets,it also means their overall share of the PC market will start to get worse and worse. Why? All the people already on AMD cards will shift increasingly to Nvidia.
This will eventually impact their console business. One of the reasons Sony and MS went with AMD,was because of ease of development with AMD having 30% to 40% of the PC gaming market historically.
But if 90% or more of the discrete market is Nvidia,it increasingly makes sense for them to consider Nvidia. Nvidia is also apparently making it's own ARM based SOC,which is their version of Strix Halo. They are also directly partnering with Mediatek,so their tech will also come to phones and tablets.
Even if hardware costs will be worse,the fact is it will be much cheaper to develop for all the console market,part of the phone market and 90% of the PC gaming market. Software costs in games are the major part of the cost of development now.