Cryptocurrency Mining Slowdown Could Lead to GPU Price Cuts

AlphaAtlas

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Industry analysts recently claimed that AMD, Nvidia, and their manufacturing and retail partners are sitting on tons of unsold GPUs they made during the cryptocurrency mining craze, and now, Digitimes' industry sources say that they've begun cutting prices to get rid of them. More specifically, the sources claim that the RX 580, GTX 1070, and GTX 1060 are getting significant price drops, which may adversely impact the profit margins of GPU makers and sellers in the coming months.

The inventory digestion process may not end until mid- to late-2019, the sources noted... Taiwan-based first-tier players have mostly seen losses from their graphics card businesses for the past two months. Although Nvidia has been planning new products for the entry-level to mid-range segments including GeForce RTX 2060, GTX 1660Ti, and the upcoming GTX 1660 and GTX 1650, to maintain its profitability, graphics card players are only expected to earn little from the new cards. With Nvidia releasing new cards and cutting prices to clear out its previous-generation inventory, AMD is currently under heavy pressure to lower its quotes, while players selling AMD-based cards are also facing strong competition from Nvidia-based ones.
 

nightanole

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That is like saying the sales tax approved for 4 years will go away after 4 years.

You are going to like 1070 speeds for $350-400, forever. Every year there will be a new 1070 speed chip for $350-400, but it will draw 20 less watts, maybe have more ram, and have 1 new feature that only 2 new games will use.
 

RealBeast

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. . . "the dissipation of the cryptocurrency mining fad . . . "

They said it would never happen, just grind away and hodl. So sad. o_O /s
 

DukenukemX

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Better late than never.
v8U7BdU.png
 

Comixbooks

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Bring on the 3000 RTX cards people would buy them today if they don't fail.
 

oldmanbal

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I'll believe it when I see it.

Nvidia cannot let their shareholders know the true murk of their situation or the stock price will taken an even harder pounding. They'd rather take a massive write off down the line than discount their cards fifty bux and sell them to eager gamers. They're not going to cannibalize their new product stack with the 1660 / ti. Instead of letting gamers happily buy the overstock 1070s at decent prices ($200), they'd let them collect dust and trash them. They can't sell them direct on the cheap since it would hang the inventory that retailers have out to dry. A gaming bundle isn't going to move them. I don't see any solution that will benefit gamers beyond what's currently on the market.
 

Marees

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They'd rather take a massive write off down the line than discount their cards fifty bux and sell them to eager gamers.

You mean nV would rather pound their GPU chips into sand rather than take a hit to their margins ?

#fromdusttodust
#fromsilicontosilicon
 

Wolf-R1

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I keep hearing the prices are going to be lowered, is this the time it actually happens?

No. We will claim prices will drop in the hopes that will create a demand but will never actually drop them.
 

Archaea

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Might be a perfect storm cause ETH just cut the mining block reward by 1/3. Which means miners (a great deal of them) were mining Eth and it’s just lost 1/3 profitability on already pretty much negligable profit margins — all in the last few days.

You’ll see more used cards on the market very shortly as miners figure out they are no longer breaking even. Especially AMD RX480, 570 and 580 cards because they were almost exclusively mining ETH to have any remaining profitability.
 
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Ranulfo

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Nvidia lost their chance to dump 1060/70's by keeping prices high over the holidays.
 

DoubleTap

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Good. I wouldn't quite say I'm an Nvidia fan, but I turn a blind eye to their shenanigans and I usually buy the top end cards while remaining relatively price insensitive, but the 2080Ti price to performance ratio is just abysmal and feels like a speculative tax on mining.

I can live with my 1080Ti for another year if I have to. I'll spend my bonus on new LS50s and a CRG9 Super-Ultrawide.
 

vegeta535

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IDK where you people keep getting this over stock stuff from. Only places selling 1070+ cards are from 3rd party sellers. The only cards my local microcenter has are some mini 1060 for $230 and some 1050/ti cards. 10xx cards been out of production for at least 6 months now. You should be looking at the used market if you want a 10xx card at this moment. There are a lot of deals out there and the 1080ti used is a hard deal to beat for around $500.

I'll believe it when I see it.

Nvidia cannot let their shareholders know the true murk of their situation or the stock price will taken an even harder pounding. They'd rather take a massive write off down the line than discount their cards fifty bux and sell them to eager gamers. They're not going to cannibalize their new product stack with the 1660 / ti. Instead of letting gamers happily buy the overstock 1070s at decent prices ($200), they'd let them collect dust and trash them. They can't sell them direct on the cheap since it would hang the inventory that retailers have out to dry. A gaming bundle isn't going to move them. I don't see any solution that will benefit gamers beyond what's currently on the market.
 

PantherBlitz

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Newegg has the 6G 1060 for $300. Not quite a fire sale - more a like phony Black Friday deal.
 

DrDoU

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Let’s see! A $500 2080ti would find me standing in line but, that’s unrealistic! Oh well.:)
 

Spidey329

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That's probably why the newest generation is more expensive, so they didn't have to cut as much price on the last generation to make them look enticing to consumers.

It's nice to see consumers voting with their wallets and holding out for the proper over-supply price cuts they've been avoiding.
 

Lakados

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Yeah but slowing down production on new GPU's to keep the overall supply & demand ratio basically the same will keep there right where they are.
 

defaultluser

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That's probably why the newest generation is more expensive, so they didn't have to cut as much price on the last generation to make them look enticing to consumers.

It's nice to see consumers voting with their wallets and holding out for the proper over-supply price cuts they've been avoiding.


Right, I bit in November only because I saw a proper overstock price cut (refurb Zotac 1060 6gb for $145 shipped), but otherwise I would be waiting for the 1660 due out later this month.

There were no grand price cuts, just short-lived deals over the holidays. The only official price cut is going to be the 1660 release.
 

che

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I just bought a used GTX 1070 Evga, for $220. That is my price point, and won't spend much more than that ever. Card is in great shape and replaced my AMD 280X
 

Kaizer

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Only the smallest of violins should be played for this moment. The end of their self created artificial inflation of prices over MSRP? Oh no.
 

HAL_404

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IMO there are a few factors that have deflated PC gaming hardware purchases:

- an almost 2 year long over extended artificial GPU scarcity with high GPU pricing scheme blamed on mining demand
- poor game releases the past 2 years
- stupid high prices for used hardware posted on eBay
 

aliaskary77

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if it falls enough, could it make mining more profitable, again so people start buying cards for mining, or has profitability gone down far enough to not increase demand for mining?
 

Archaea

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if it falls enough, could it make mining more profitable, again so people start buying cards for mining, or has profitability gone down far enough to not increase demand for mining?
The later

ASICS have basically replaced GPUs as the mining tool of choice on every established algorithm. Even if a new profitable coin/algorithm comes out, six months later there is an ASIC sold. Meanwhile the market is consolidating — most tokens won’t survive.

www.Asicminervalue.com

Not even ASICS are profitable right now.
 

Raghar

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Cooling Immersed in liquid
Gimme PC components I could immerse in liquid and have fun.

Yup, GFX cards are no longer useful in mining.
...
Well some graphic card manufacturers didn't get the memo yet.
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pillagenburn

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Any mining you do now would be on speculative coins that you can't readily buy. Hash power is maintained out of universities where the students don't pay for power or hijack the computer labs to create botnets..... or just outright botnets, so you're competing with people that effectively have zero electricity costs.

Oh and they probably don't pay for most of the hardware they use.
 

SamuelL421

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Idea for Nvidia / AMD / board partners:

Unused RX580 / 1060 / 1070 cards?

Create the following new cards / SKUs:

RX580 Duo

GTX 1060X2

GTX 1070X2​
These won't cannibalize sales as no one in their right mind would buy them (performance scaling sucks these days). That said, collectors, people who want it for their e-peen, or the generally uniformed will buy this up. Better yet, you can actually charge more the dual gpu card than two individual cards and people will still buy it.
I expect my check in the mail.
 
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