The price of graphics cards will continue to tank and will stay low for at least 2 years - Here's why

gpuerrilla · 16 Aug 2022 at 16:16

chaparral said:
Many People still have loads of money as are local house prices are going through the roof

Err I wouldn't bet on that mate! Prices have already started falling.

Jay85 · 16 Aug 2022 at 16:40

Troezar said:
Many people are borrowing money they will have a hard time paying back That's part of what has caused this problem, irresponsible lending and a bidding war pushing up prices. They don't have money they have debt, that doesn't even include the huge credit card debt, car payment debt and lack of savings. I've been saying it for years, there's going to be a reckoning for those who've overstretched themselves.

This! I know a mate who had a 40k credit card debt cos they spend what they can't afford to fulfill a life style to keep up appearances. Because of this, it gave him no end of problems when it came to his mortgage renewal and his dad had to bail him out in the end. It's mind boggling how you can rack up so much debt...

arknor · 16 Aug 2022 at 17:22

Jay85 said:
This! I know a mate who had a 40k credit card debt cos they spend what they can't afford to fulfill a life style to keep up appearances. Because of this, it gave him no end of problems when it came to his mortgage renewal and his dad had to bail him out in the end. It's mind boggling how you can rack up so much debt...

It's mind boggling that people care about keeping up any appearances.

it's all brain washing and manipulation by adverts influencing behaviour, do most people even care what car you drive etc or whether you wear a gucci belt

gonna buy some 3090ti and rip the chips out to make a belt buckle and some jewllery or something during the next mining craze :S

bemaniac · 16 Aug 2022 at 17:24

arknor said:
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

You will be paying £600/m for heating next year. You regardless of status will lose your lifestyle. You are 50/50 going to have to sell your pc for food and heat even if you own your house and are a posh tit.

I too am expecting to suddenly lose my house, my hundreds a week of disposable income and have to sell my gaming stuff to prolong home ownership and I'm pretty damn well off in Surrey.

arknor · 16 Aug 2022 at 17:26

bemaniac said:
You will be paying £600/m for heating next year. You regardless of status will lose your lifestyle. You are 50/50 going to have to sell your pc for food and heat even if you own your house and are a posh tit.

I've got thermal vests and happily sit in a 10c room anyway. I embrace the cold, why do people need a constant 20c? your body acclimatises.

even in the winter I'll just wear a Tshirt under my coat outside, sure you feel freezing for the first 10 minutes but then your body starts burning fat or whatever to keep you warm

lovelyhead · 16 Aug 2022 at 18:38

arknor said:
I've got thermal vests and happily sit in a 10c room anyway. I embrace the cold, why do people need a constant 20c? your body acclimatises.

even in the winter I'll just wear a Tshirt under my coat outside, sure you feel freezing for the first 10 minutes but then your body starts burning fat or whatever to keep you warm

You are a hard man though. Most people aren't as hard as you.

CuriousTomCat · 16 Aug 2022 at 19:11

lovelyhead said:
You are a hard man though. Most people aren't as hard as you.

Common sense comes into it as well. Some people wear a t shirt with the heating on in the winter. I wear a jumper and a fleace with the heating much much lower. I'm just as warm as them.

lovelyhead · 16 Aug 2022 at 21:45

Auxilione is predicting that electricity will cost 87p per KWh by April 2023.

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So 3 hours of gaming a day on a 500w PC will cost about £40 a month.

Two 15 minute showers a day will cost £110 a month.

Using a tumble dryer for an hour a day will cost £122.55 a month.

Plus add on all your other energy usage.

AMD and Nvidia will no doubt have their halo products priced high but their mid range will have to be very cheap if they want to turn a profit this generation in this economic climate.

Joe Jones · 16 Aug 2022 at 22:32

...and coming back to topic...

https://videocardz.com/newz/nvidia-geforce-rtx-30-gpus-to-see-even-lower-prices-by-the-end-of-august

There is also reports that nVidia are re-starting production of 3080 12gb (GA102 that didn't meet 3090 cut) again due to 3rd party requests and will push the price down to shift stock.

Grim5 · 16 Aug 2022 at 22:54

Nvidia is actually cutting its price it sells wafers to AIBs that's why it's gross margin is down 20% this quarter.

But Nvidias cuts are quite small relative to AIB cuts on some cards. Like EVGA cut its 3090ti retail price by 1 thousand dollars and that was only possible because it cut its own margins, Nvidia would be making nothing and giving away wafers for free if that 1 thousand was just from them

Nvidias margins are now in the low 40% and I can't see their shareholders accepting any lower than that given historical levels so any further cuts we see in GPU prices from here on out is likely all on the AIB cutting their price not Nvidia doing more cuts

JediFragger · 16 Aug 2022 at 23:06

Just imagine the poor ******** who bought the Ti for £2k

BigBANGtheory · 18 Aug 2022 at 08:31

Troezar said:
Many people are borrowing money they will have a hard time paying back That's part of what has caused this problem, irresponsible lending and a bidding war pushing up prices. They don't have money they have debt, that doesn't even include the huge credit card debt, car payment debt and lack of savings. I've been saying it for years, there's going to be a reckoning for those who've overstretched themselves.

I don't disagree but I would add that there is also an interesting but often overlooked side effect to inflation. That is overtime the true value of debt can decrease assuming of course your income rises over time which it generally does if you measure it for longer periods.

My opinion therefore is that there is good debt and there is bad debt. Lending money and spending that on bad debt leads to problems.

dave1983 · 18 Aug 2022 at 08:48

i was considering selling off my 5700xt but prices are still high IMO, who's going to buy a 3070ti at £500+ once the 4000 series come out at around the same price. And most people like myself will want a card that produces lower wattage at peak mines around 200watts

The issue i have is how do i price my card? standard 5700XT is anywhere in a region of £150 - £200. But mines had the 5700 mod to overclock to an XT and has a water block. 5700 series are notorious for getting hot so went the water-cooled route to keep the junction temp low.

BigBANGtheory · 18 Aug 2022 at 08:51

Grim5 said:
Nvidia is actually cutting its price it sells wafers to AIBs that's why it's gross margin is down 20% this quarter.

But Nvidias cuts are quite small relative to AIB cuts on some cards. Like EVGA cut its 3090ti retail price by 1 thousand dollars and that was only possible because it cut its own margins, Nvidia would be making nothing and giving away wafers for free if that 1 thousand was just from them

Nvidias margins are now in the low 40% and I can't see their shareholders accepting any lower than that given historical levels so any further cuts we see in GPU prices from here on out is likely all on the AIB cutting their price not Nvidia doing more cuts

So here is where I see the problem... those 40% margins are not more evenly distributed across the sku's.

Now you could quite legitimately say 'that is to be expected' after all why wouldn't you seek a higher margin on products that sell lower volume and gain from up lift in performance being sought by demanding PC gamers. All of that is fine...

That is not what we get though, what we see is Nvidia and AIBs segment and produce products with a ludicrously high margin which is also used to raise the base prices of the lower end. Also what we are very likely to see imho for the 40series is the same crap they pulled with Turing where in order to get a substantial generational increase in performance you have to buy into that high margin sku catalog.

So as a consumer I don't mind paying more for something over and above the production costs, I do have a problem going from 40% to 200% margin in order to get a decent uplift in performance from a black box graphics accelerator.

I agree the margin issue extends to AIBs its not solely with Nvidia, in which case stop using 'those AIBs' they can't abstract themselves from responsibility either.

Troezar · 18 Aug 2022 at 13:04

BigBANGtheory said:
I don't disagree but I would add that there is also an interesting but often overlooked side effect to inflation. That is overtime the true value of debt can decrease assuming of course your income rises over time which it generally does if you measure it for longer periods.

My opinion therefore is that there is good debt and there is bad debt. Lending money and spending that on bad debt leads to problems.

Yes as long as your debt is at a fixed rate. Inflation will effectively reduce my mortgage assuming i get pay rises. Other people on variable rates will be well and truly in it.

Frenzy · 18 Aug 2022 at 13:36

JediFragger said:
Just imagine the poor ******** who bought the Ti for £2k

I find it hilarious, I hope they feel bad for making such silly purchases. For development or content creation that's fair enough, but a guy who just plays games? buwahaha, muppets. Of course if you are wealthy and money is of no real concern then it's just a choice they've made and won't really affect them.

CuriousTomCat · 19 Aug 2022 at 21:35

Anybody who's happy to spend 2k on a GPU for gaming would have been just as happy to use it for a down payment on a jacuzzi or some other frivolous ostentatious purchase.

It's the people who paid a huge markup for a 6600 or a 3050 or a 3060 or a 3060ti who I feel sorry for.

uscool · 19 Aug 2022 at 21:43

I dont why would you feel sorry dont think they were forced ? could say they helped with fueling it find another hobby while waiting ? or sign up for FE alerts I did

arknor · 20 Aug 2022 at 00:24

seems like a lot of cards are going on the members market with very little interest recently.

also so on hotukdeals people in the comments saying hold the line and don't buy

Zarax · 20 Aug 2022 at 06:50

I am one of those holding... I was gunning for a RX 6700XT and initially I was just waiting for MSRP.
Then I just realised something... Is there anything that I would truly need the card for? So far the answer has been no and even 100€ under MSRP it's still a hard no.

Will this change with the next gen? I have no idea, what will likely push me to upgrade is some kind of hardware failure, which is getting likely as my current PC is approaching the 10 year mark (HDD and GPU aside).