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A quote for energy I received today.
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The price of graphics cards will continue to tank and will stay low for at least 2 years - Here's why
- Thread starter lovelyhead
- Start date
A quote for energy I received today.
No money after energy rises.
When a large proportion of the population are deciding between heating or eating, buying a GPU costing hundreds or even thousands won't even enter their heads. Things are going to be bad for the next couple of years. Nvidia, AMD, their partners and retailers will be desperate to shift stock.
the heating or eating will be the poorest 30-40% of the country who likely couldn''t afford to PC game anyway.
yet can afford scratch cards, cigarettes, booze and takeaways
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Who do you think buys the most GPU's? You just need to look at the Steam charts to see that it is low to mid range GPU's that are the best sellers. The people that buy them are looking for the best bang for buck. Those people will be feeling the pain of the energy rises, food rises, fuel rises etc and will not be buying GPU's.
Energy isn't the only reason, but yup, it is already hitting demand, though not just GPUs, pretty much everything is falling or staying stable (despite inflation). RAM prices are supposed to continue to fall Q3 and Q4 and I expect other hardware to do the same. Sooner or later, they'll just cut supply though, orders are already being postponed, or cancelled.
Soldato
Flagship cards only account for a small % of the userbase.
Those 'poorest' people buy low / mid range cards and game on it happily they aren't chasing the smallest % increase of performance or tweaking things. Look at the steam charts the most used GPU across steam users is a 1060
So you are saying poor people would be ok if they only paid for heating and eating and stopped paying for frivolous things like the little (to them) luxuries in life?
Good old Victorian values. Quit complaining, you have a bed in a hovel and get paid a pittance for working 18 hours a day 7 days a week. I mean you don’t even have spare time to do anything else with your worthless life anyway. Get back to work you freeloading wretch.
Soldato
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- 21 Apr 2007
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its going to take time for pricing to reduce imho
you have to remember its the absolute last thing vendors want to do and they are going to try every possible trick imaginable to avoid it
you have to remember its the absolute last thing vendors want to do and they are going to try every possible trick imaginable to avoid it
Soldato
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- 13 Mar 2006
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Rubbing the scratch cards for warmth, burning cigarettes for warmth, drinking booze to not feel the cold, buying 40xx series to warm the house...
@BigBANGtheory I agree with you. But prices will tank regardless. Shareholders won't be happy with low sales volumes.
Octopus.
Luckily I had another option with them and got to renew at 40p / KWh (7.5p / KWh between 12:30am and 4:30am) on the Octopus Go tariff.
Soldato
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- 22 Nov 2018
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That's not how it works. Prices won't tank. People will just buy lower tiers if they're struggling. 4050Ti instead of 4060Ti.
Top brand names in supermarkets aren't tanking. People are simply buying more from the value ranges instead. Same thing.
Top brand names in supermarkets aren't tanking. People are simply buying more from the value ranges instead. Same thing.
The amount of people even considering buying a GPU is about to fall of a cliff at anywhere near the price they are currently retailing for. Spending £300 on a low end GPU will be laughable in about 6 - 12 months. A GPU is a pure luxury item that uses a fair chunk of electric which is basically un-affordable now and can't be compared to food. We are about to enter a recession that will be worse than any other in living memory.
Soldato
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The reason a low end GPU cost £300 is because of pandemic/mining/shortage/shipping costs.
That's coming to an end (apart from high shipping) so prices are returning to normal. Before the pandemic, the low end cost about £150 for a RX 580. Those prices will be back to normal. Not because of energy prices though. It was always inevitable prices will drop because it's happened after EVERY mining craze.
It certainly is and they try every trick in and out of the book.
While most politicians and central banks would will move mountains to avoid a property price crash. or similar asset price crashes.
A crash back to more sane GPU prices? Doubt it will register. Central bankers can get very worried about deflation in principle but there's far too much inflation around for that to be a major factor.
GPU manufacturers will just have to get used to lower margins. Nvidia margins are anyhow crazily high, so they at least can afford it.
So you agree that prices are going to tank then, you just don't agree on the reason why.
Do you agree that if the economy was doing well and people had a decent amount of discretionary spending then GPU prices would probably stay at similar levels to now and would not reduce in price?
Soldato
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- 22 Nov 2018
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No I don't agree. In 2018 when the last mining craze ended, GPU prices returned to normal (or "tanked" as you call it). I don't remember problems with the economy back then and energy prices were normal.
Sales volumes were probably pretty good back in 2018 once prices reduced. I think this time prices will fall and sales will be low too. That will be mainly because the cost of living is out of control. Do you agree with that?