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The GPU market is built on a broken foundation

The GPU market is built on a broken foundation

More than a month after their exposure I think it can be said that Nvidia It was disappointed. between the company’s The least performed out of 40 series, which is probably one of the worst releases in NVIDIA’s recent memory. But the worst part is watching history repeat itself.

Looking back over the past few weeks, I remembered an article . The disadvantage is that I bought it In August of that year, or NVIDIA announced the Geforce 40 series for more than two years. Many readers correctly point out that my impact on the crypto market on future prices is wrong, but I think my basic reasoning is reasonable. When I did this, I bought the 3070 because I felt like Nvidia’s new GPU would cost more than their 30 series peers, and finding new cards at a reasonable price is nearly impossible. I’m right: it’s hard to find 40 series cards at launch.

Here we are starting the new GPU generation two years later and we will do it again. If you’re just a normal person looking to upgrade your gaming PC, it’s not only impossible to find a 50-series GPU anywhere, but it’s also a much higher price per model than Nvidia’s suggested price. There was no pandemic this time, so what was given?

NVIDIA RTX 5090NVIDIA RTX 5090

Devindra Hardawar for Engadget

The problem is that trends in common periods set precedents. Since 2020, some people are willing to pay for the purchase of a new Nvidia card at the time of release. The difference now is that NVIDIA’s partners decide to take the money themselves instead of giving the opportunity to cast cattle a profit from this behavior. The end result is that now, companies’ GPUs are as high as the market’s tolerance, and they continue to continue to price as long as supply is limited.

It’s time for us to admit that the core business model of the GPU industry has been broken. For beginners, AIBS (or additional board partners), such as Asus, Gigabyte, XFX, and Zotac, most of the GPUs can be purchased from Nvidia and AMD. In the past, this model has led to differences between cards in the same tier. For example, during a medium-sized period, you can spend more time buying a GEFORCE 8800 GT with 1GB VRAM, rather than the 512GB specified by NVIDIA. But those days are gone forever.

Modern AIB GPUs can have a slight overclocking or extra fan, but they are fundamentally the same products. Whether you buy a 5070 directly from NVIDIA or one of the partners, it’s still a 5070. At best, if you choose a model with overclocking or other cooling, your performance differences are small, but the price may vary widely between different AIBs, even in a company’s lineup.

Digital foundry Say the best Recent DF Direct Episode. “The AIB model seems to be a lot of cards, like some weird middlemen who are purely present, can extract more value from consumers and does not provide effective differentiation for price increases.”

Just watch . according to price starts at $749. However, the retailer’s website tells a different story. if you for example, there is no 5070 TI listed, and the price is $749. The most affordable price is $799, and the other ownership prices are above $830. There is even a $920 list. Needless to say, the value proposition of 5070 Ti is very different as of $900.

A brief introduction The Trump administration’s recent tariffs on NVIDIA’s new 50-series GPU price swelling China’s imports would be a reasonable explanation if the costs of these cards rose only 10%.

NVIDIA seems not interested in solving the problem in a meaningful way. By far the best solution it offers is This gives unspecified U.S. customers the opportunity to purchase 5090 or 5080 directly from the company. As long as they provide the company’s performance, AMD’s new type Pressure will be put on NVIDIA to more aggressively price the 5070 and 5070 TI, but it remains to be seen whether AMD will manage to keep stock at stock and recommended retail prices.

Pricing for this generation of GPUs will eventually normalize, but unless there is a fundamental change in how the industry does business, you can bet that all of this will happen again. Just because the industry has been doing things this way does not mean we should work as usual, especially when the status quo of each launch cycle gets worse.

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