I just don't see this streaming for gaming getting much traction. The internet infrastructure is just not good enough and some of the most popular games are eSports which benefit from less latency. Sounds like an attempt to sell games as a service, which arguably they are already with many of them requiring an internet connection.
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When the Gpu's prices will go down ?
- Thread starter sys6em
- Start date
Soldato
Then they are losing out on profit. What kind of shareholder supports that?
Soldato
But they are not losjg profit - retail isnt important to them
im expecting amd next gen cards to be a lot better once they have worked out the kinks in chiplet gpu with this gen
Soldato
Agreed, any sort of competitive game, latency is king, literally fractions of a second count.
Yep, if something costs you $10 to make and ship and you can sell 10 for $50 or 100 for $20 it's pretty obvious which you should pick to maximise profit - it sometimes feels like nvidia thinks basic laws of supply and demand don't apply to them, though I'm sure they justify it as some upselling strategy or increasing long term consumer price expectations (which I don't think a single company should be able to pull off in a functional market tbh, feels monopolistic), or something
They should be worried about killing (or at least harming) their own market long term by pricing so high, some people will be priced out of PC gaming and just not come back
Caporegime
Because the stock market is now primarily driven by speculation on margin increase YoY. This is why when Apple one year still made record margins and profits,the margins were less than speculated and their shares fell. It is also the reason why companies making record profits,try and squeeze pay and offshore jobs. The whole stock market is speculative Ponzi Scheme. It's why we had the dot-com bubble and the subprime crisis. Governments are not doing enough to reign in this rampant speculation - in the end the taxpayer always foots the bill when the bust happens.
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It would be simple to fix. Ban management objectives based on stock prices and stock options as payment, see how policies change.
Soldato
Makes sense, but how crazy is it that the promise of a higher margin/profit trumps the actual making of profit. Idiots deserve to lose.
Caporegime
Just look at subprime? The subprime loans were called that because they were given to high risk group people who had a high risk of defaulting on loan repayments. Then they repackaged the debt into multiple speculative packages,etc and went surprised panda when the people defaulted.
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It is the same reason why Japanese companies got to where they were in the 1980s and why Chinese companies are on the rise. They were willing to prioritise revenue over profit margins. As a result many companies in the West are happy to give up lower margin revenue and profits worldwide even if it means less customers to amortise costs over which means they need to jack prices up even more. All this has done,is enable space for competition from the rest of the world to fill the gap and they can amortise costs over a bigger audience,so can get away with lower margins.
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Associate
That is precisely why they make more than one model though.
Let me be clear, I detest Nvidia but if they manage to keep selling their top end cards at ridiculous prices then at a business level they weren't wrong to do so. It's only if sales get obliterated we can clearly say they messed up but as far as I'm aware they're still selling even if relatively poorly now. I refuse to support these prices without matching circumstances (supply chain being blown up by lockdowns etc) so I won't be upgrading unless I've got no other choice but my actions don't matter to anyone other than me and with assuming current circumstances don't change (let's be optimistic) I still have a sinking feeling people will support these sky high prices on the next set of releases.
thats better
You also have to account for future sales. It's no good to offer people a product so good they won't need to upgrade again for many more years because that means you'll go bankrupt from the collapse in revenue.
Soldato
At the right price, many gamers would upgrade relatively frequently, at least every 2nd generation. Performance improvement will always generate sales as its in demand by the games that are being made and the advancement in monitor tech and things like VR.
An £800 GPU every two years, sold used for half its new price after this time, costs £17 per month.
Buy new for £800, sell for £400, every two years. That should be enough to keep future GPUs in demand.
Also have to account for the mountain of previous gen still relevant cards which they can't afford to cut the price on too much or else their stock will fall off the cliff.
I am of the opinion that retail do matter to them but again, long term keeping prices much higher will be much more profitable to them. Being almost a monopoly they can do that and still earn loads over time. If someone's old 1060 dies they'll have to buy something like 4060. Much better margins for Nvidia with current prices and loads faster GPUs for much more - to cover the ones that have more money. All of them with just better profit margins than before. Thinking about just current 40 generation is very short term - they can easily absorb such losses for better future.
This is what happens in monopoly really, where competition isn't that active anymore. And that's in big part what consumers created for themselves by sticking to one brand no matter what.
One word - brand. Sometimes it's an that's needed, irrelevant of anything else.
Indeed. The Apple iSheep. The Nvidia nSheep.
