AMD Claims They Baited Nvidia with Fake GPU Prices
Mike Sanders / 3 years ago
With the release of the RX 5700 (XT) graphics cards, AMD has arguably one of the most attractive GPUs currently on the market. At least in terms of market price point. Following the official reveal at E3, however, AMD announced prices for the graphics card that were summarily dropped. The announcement being made literally just prior to launch.
AMD Claim They Baited Nvidia Over GPU Prices
In the report, Scott Herkelman of AMD has claimed that the company deliberately announced higher than planned prices in an effort to throw off Nvidia. Specifically, with their upcoming ‘Super’ release.
“[We] made the appropriate move not only to deposition their Super series, but also to log jam their 2060 and 2070. Because we knew that they’re having slower success, and we wanted to do a double Jebait.
We started modeling different competitive scenarios, their [Nvidia’s] die size is quite big, and we knew what they could probably afford in terms of margins and pricing and what they were currently pricing their products at.
We know that they have a tremendous burden on their gross margins. Because their die-size is big and so we just gameplayed SEPs.”
If true, it was rather well played by AMD as they clearly made Nvidia respond with a relatively comparative pricing structure. A factor perhaps clearly evident now amid claims of low Nvidia ‘Super’ stock issues and retail price increases.
What Do We Think?
It’s entirely possible that AMD is reinventing the narrative here. That being said, however, when Team Red announced the price drop, many at the time considered it a knee-jerk to Nvidia’s ‘Super’. The truth is, however, it may have been entirely the other way around.
It’s not exactly clear how the community will respond to this. Many would consider both AMD and Nvidia’s GPU prices still far too high. On the plus side, however, at least AMD may have successfully gotten Nvidia to price lower than they wanted.
What do you think? Did AMD successfully bait Nvidia here? Which brand do you plan to use in your next graphics card upgrade? – Let us know in the comments!