From Techradar today:
"Another interesting revelation from Jon Peddie is that the analyst firm reckons Nvidia’s RTX graphics cards represent two-thirds of its gaming revenue. Note that this is revenue, not units sold, so it isn’t the case that Nvidia is selling a massive amount of these cards – but it is making a massive amount of money off them."
So GPUs are so expensive because Nvidia wants the maximum profit margin (higher than ever before) in this series and calculates they can do so.
I have been saying that for a while now. Last time I said it D.P. magically appeared (as he does when anyone says anything negative about nvidia) and tried to use some graphs to suggest otherwise, that is until I set him straight and he magically disappeared again. Lol
They can't survive on cards which are expensive, but sell less though. GPU sales have been falling all year apparently. They need to maintain market share otherwise it's a downward slope in to obscurity, which only gets worse with each generation.
Nvidia has a problem now. Where do they go from here?
What problem is that? Making a lot of profit per GPU sold?
All they have to do is put pricing back to the same level as pascal and suddenly everyone will be cheering for them again. They would still be making good profit, probably less than half as much per gpu sold, but they would make up the total profits by selling a lot more GPU’s overall.
I mean it is quite clever really. Release RTX, price it very high and make it seem super premium for essentially beta testing their product. Then release the next gen ones which actually have decent RT performance and charge less and people will throw their money at you!
That’s my layman theory anyways
