Analysts Suggest Long-Awaited GPU Price Drops Finally Here
Ron Perillo / 5 months ago
Under Inventory Pressure
Graphics card prices have been stubbornly high for the past year. That is despite the arrival of next generation cards and the precipitous drop of GPU mining.
The strategy it seems for AMD and NVIDIA has been to keep the prices up to soften the fall from the crypto boom. All the while hoping that it would kick up again to justify the GPU inventory they have amassed form overproduction.
Many users however, have simply opted to not upgrade their older hardware at all due to the high prices. So now despite holding back the tide for so long, GPU manufacturers might be finally dropping prices down to more sensible levels.
That is according to Digitimes the price drops have begun. Initially with brief price-drop campaigns to test the waters. Although with GPU partners finally seeing demand pick-up after price-cut campaigns, it makes sense to continue on. First-tier GPU partners are finally seeing revenues rise again, despite unsatisfactory profitability. The alternative could be a lot worse, so the only option is to finally take a hit.
NVIDIA is of course introducing a slew of new affordable cards and cutting prices of existing inventory (at least with their previous gen cards) to ease partner burden. AMD is also seeing pressure from NVIDIA as well as the market, so they are lowering quotes.