NVIDIA and AMD Are Shipping Fewer GPUs as Retailers Sit on Inventory

Megalith

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Jon Peddie Research’s review of the GPU market for Q4 2018 suggests retailers are still neck deep in graphics cards they can’t get rid of, as overall shipments are down from the previous quarter: "all three companies saw a 2.65-percent decline in shipments from Q3 2018 to Q4 2018. AMD was down 6.8 percent, NVIDIA was down 7.6 percent, and Intel was down 0.7 percent." Peddie predicts the fallout from the cryptocurrency crash will persist through Q1 and Q219.

Year-over-year, GPU shipments dropped 3.3 percent. An 8-percent increase in notebook GPUs wasn’t enough to offset a 20-percent decline in desktop video cards. "The channel’s demand for add-in boards (AIBs) in early 2018 was out of sync with what was happening in the market," Jon Peddie Research founder Dr. Jon Peddie said. "As a result the channel was burdened with too much inventory. That has impacted sales of discrete GPUs in Q4." And it’s unlikely that the market and supply chain will equalize any time soon.
 

RealBeast

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NVIDIA and/or AMD should have a limited time big rebate (like $50-250 based on model MSRP) for a limited time.

That would allow them to move a lot of cards but keep their exorbitant pricing baseline intact.

Greedy fools.
 

Zion Halcyon

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Good, Prices are so out of line that I hope they continue to collect dust.
I just went on NewEgg and noticed that.

I know there's a bunch of unwanted production costs that would come along with it but I greatly appreciate if AMD could figure out a way to do direct sales in the future.

Undercut a lot of these third-party shops trying to rip us off.
 

DesertCat

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It’s like they expect people to not have a memory of previous prices. When I got my GTX 1060 2.5 years ago, they decided to push the price of a mid-range card past the ~$200 mark. The MSRP for a 6GB model was something like $249 but it was relatively easy to find card for $10-30 less than that depending on the card maker and retailer. Then crypto happened and you had to pay way more than MSRP. Now that has died down, with an inventory glut as well, and they are trying to convince me that a mid-range card now goes for $279-350 (1660Ti or RTX2060). Ummm. No. Just No.
 

FarleyM

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It’s like they expect people to not have a memory of previous prices. When I got my GTX 1060 2.5 years ago, they decided to push the price of a mid-range card past the ~$200 mark. The MSRP for a 6GB model was something like $249 but it was relatively easy to find card for $10-30 less than that depending on the card maker and retailer. Then crypto happened and you had to pay way more than MSRP. Now that has died down, with an inventory glut as well, and they are trying to convince me that a mid-range card now goes for $279-350 (1660Ti or RTX2060). Ummm. No. Just No.
I brought my aftermarket 980ti for $690 summer 2015 a 2080 ti is in the $1400 range and the cards that are supposedly $999 all have shit coolers on them. That kind of price jump in less than a decade is just insanity I've decided to just hold on with my 980ti until this summer and if things don't change I'll buy a used 1080ti off ebay.
 

NeoNemesis

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Retailers are desperately trying to hold onto the margins they were able to command during the crypto bubble.

The cheapest 2080ti you can find on Newegg Canada is $1650, with most being up around $1900-$2000.

The worst part is they are sitting on an inventory of 1080ti that they are trying to sell for the same price as the 2080ti.

The pricing on these cards is just nonsensical, even the 6gb 1060 I bought 2+ years ago is still selling for approximately the same price.
 

c3k

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I'm ready to pony up some cash...but not at these prices.

I want better perf/dollar before I upgrade. And lower TDP would be nice, too.

I've got a "pent up demand" for 2 or 3 cards, and a desire for possibly one more. 1 or 2 cards for 1440 and one for a multiple (3x) 1920x1200 setup. Another card for a 4k HTPC...but that can wait.

(Edited to add: a corollary to the GPU "pent up demand" is that I will not purchase new monitors/display devices if I cannot drive them appropriately. I'd buy another 1440 and another 1920x1200 (or three) today, if I had the GPUs sitting in my machines which could drive them.)
 

IndyColtsFan

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Retailers are desperately trying to hold onto the margins they were able to command during the crypto bubble.

The cheapest 2080ti you can find on Newegg Canada is $1650, with most being up around $1900-$2000.

The worst part is they are sitting on an inventory of 1080ti that they are trying to sell for the same price as the 2080ti.

The pricing on these cards is just nonsensical, even the 6gb 1060 I bought 2+ years ago is still selling for approximately the same price.
They all got drunk on greed with all the price gouging during the crypto bubble and are scrambling to find ways to keep those pricing levels, but they're going to fail.
 

DesertCat

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I just upgraded my PC after 8 years, went from a 2600k intel i7 to a 2600 AMD... bought a new MB, a new set of RAM, and the CPU, even bought new storage... I did NOT buy a new video card. Hint Hint, NVidia, AMD...
Very similar here. I recently upgraded from an almost 10 year old i940. Went with an AMD 2700 I got on a good deal. New motherboard, new memory, new nvme drive, new case. The only things I didn’t change were the PSU (~2 year old seasonic) and the GTX 1060 graphics card. No compelling reason for me to give Nvidia or AMD a dime on the graphics front.
 

joobjoob

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Now that first wave of epeen buyers are done, I've noticed plethora of new and used building up. Meme writes itself.

"Y u no pay 800$ for mid range GPU?"

Maybe 7nm navi, in whats the rumour, July? Will return some sanity. I'll pay $1k but it will be for a 7nm Titan with 2080ti+ performance. And 16gb.

I assure you my contentment gaming at 1440p I can outlast shareholders.
 
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I am shocked at the prices of new GTX 1080's and 1080ti's. The 1060's have recently gotten back to about MSRP prices, of more than two years ago. I find the RTX series far too expensive for the performance gains they provide. I bought an Asus GTX 1080 Strix for a little more than $500 more than two-and-a-half years ago and a similar performing RTX card costs about the same. I guess I will hold onto this card for another two years at this rate.
 
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I'll wait for Navi I guess. I don't have any games currently that make me want to even play on the PC ... Multiplayer is rife with cheaters and single player games that I play have stagnated. I'm actually tilting back to consoles.
 

BHenry

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I came pretty close to buying a Radeon VII because it includes $180 worth of games that I am already planning on buying which brings down the effective price for me from $700 to $520. A friend talked me into holding off though, so I guess my almost three year old GTX 1070 will continue to solider on.
 

EODetroit

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Not just the Crypto crash, but it combined with the latest products being overpriced and hardly any better. If they had an actual successor product, AMD and Nvidia would be doing just fine.
 

Snowdog

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Retailers are desperately trying to hold onto the margins they were able to command during the crypto bubble.
Anytime there is some kind of excuse to raise prices, the whole product chain tries to get in on it, and they are slow to let go.

I remember there was a flood at some HDD plant or something several years ago. It caused a couple month shortage of HDDs, but the high prices lingered for something like 2 years after.

As long as enough customers keep paying higher prices, the prices stay higher.
 

eclypse

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I'm shocked! Not!!!

I have fresh tax money and normally I'd be upgrading the system and graphics! At half the price like NORMAL it would of been done!

They can suck on those prices!
 

harmattan

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It’s like they expect people to not have a memory of previous prices. When I got my GTX 1060 2.5 years ago, they decided to push the price of a mid-range card past the ~$200 mark. The MSRP for a 6GB model was something like $249 but it was relatively easy to find card for $10-30 less than that depending on the card maker and retailer. Then crypto happened and you had to pay way more than MSRP. Now that has died down, with an inventory glut as well, and they are trying to convince me that a mid-range card now goes for $279-350 (1660Ti or RTX2060). Ummm. No. Just No.
This is exactly what nV and AMD are banking on. For years, nV has been driving home every scheme possible to adjust pricing expectations. It's why they segmented the high-end to enthusiast to enthusiast+ to "ultra-enthusiast" chips; it's the whole point of the "founders edition". It's why theyve been entirely hands off their AIBs and retailers pumping prices well past "msrp" (which isn't really MSRP any longer in the traditional sense, but what nV wants you to believe they're selling cards for). It's all pricing theory 101.

Then the crypto boom happened... A GPU maker's wet dream, not only because the boom moved cards, but because it adjusts the market's price expectations.

Thing is, the boom is well over and unlikely to return, but nV and AMD (to a lessor extent) are holding fast since they thing they've now convinced the market that an $1100 high-end card is in the realm of reasonable. It's not, and it never will be, but they'll keep the prices up like a game of chicken.
 

joobjoob

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Only new game I really wanted to play in last 6 months was console only RDR2. Cyberpunk 2077 is probably my next GPU upgrade game. I've been playing lots of backlog games quite happily. I guess my GPU cycle money is now going to nintendo where they made gaming fun again. MGFG ;)
 

joobjoob

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I think we’re also getting “good enough” for a lot longer now. Most people i know seem to be upgrading due to component failures rather than performance.
Don't give them any ideas about planned obsolescence.
 

joobjoob

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I just upgraded my PC after 8 years, went from a 2600k intel i7 to a 2600 AMD... bought a new MB, a new set of RAM, and the CPU, even bought new storage... I did NOT buy a new video card. Hint Hint, NVidia, AMD...
Curious about your experience huge CPU upgrade and no GPU change, gaming smoother? Fps more stable? Load times?
 

joobjoob

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I just went on NewEgg and noticed that.

I know there's a bunch of unwanted production costs that would come along with it but I greatly appreciate if AMD could figure out a way to do direct sales in the future.

Undercut a lot of these third-party shops trying to rip us off.
Thought with radeon vii AMD now does direct sales?
 

viivo

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There's no reason for NVIDIA or AMD to even consider reducing prices. The Radeon VII is an overpriced boutique product that should have been called Vega 64.5, but people still bought out all stock from third-party retailers within moments. The 20 series' well-documented disasters didn't seem to slow down sales. What I don't understand is why the 1660, 2060 and 2070 are so close in price. Is it so people will assume the 1660's architecture is at all comparable to the Turing models?
 

DrDoU

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Not ever paying $1000 bucks for a video card. These companies are crazy. When shareholders start dying of cement poisoning maybe prices will start to fall.
 

SixFootDuo

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Corporate greed, capitalism, evilness.

These men behind these companies have more money than they could ever possibly spend.

Everyone suffers but them. Even the employees while paid decently could be paid better.

I hate that I spent $1300 on my RTX 2080 ti ... not that I didn't have the money or missed the money or had to juggle any funds around, I didn't, it's just the fact all the kids under me who really wanted this card will never be able to afford it at that price point and I think there is something really wrong with that.

I hope that all these problems cause nVidia to charge much less for their new cards in the future.

Looking back, the $799 we paid for the 1080 ti even seems obscene.
 

deton8

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I think the manufacturers have a mistaken assumption about how price-elastic the average video card customer is based on the halo card customers and lately, crypto.

I will buy the best card in my budget. My disposable income doesn't increase to match the delusional fantasies of corporate profit forecasting.
 

sleepybp

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For 1080P, used RX 580 8GB can be had for around $130. That is a steal for solid 1080P gaming and makes any new card for 1080P appear over priced (both Nvidia and AMD cards)
 

renz496

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Now that first wave of epeen buyers are done, I've noticed plethora of new and used building up. Meme writes itself.

"Y u no pay 800$ for mid range GPU?"

Maybe 7nm navi, in whats the rumour, July? Will return some sanity. I'll pay $1k but it will be for a 7nm Titan with 2080ti+ performance. And 16gb.

I assure you my contentment gaming at 1440p I can outlast shareholders.
honestly i doubt navi will be the one that will drive price lower. AMD for their part already tell us their intention in regards to pricing with RX590 and Radeon 7 base MSRP. if they have the performance they will try to match their pricing accordingly with nvidia instead of try to undercut nvidia.
 

Nunu

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My top end price would be 500. That's the most I've spent and plan to in the future.
 

Eymar

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For 1080P, used RX 580 8GB can be had for around $130. That is a steal for solid 1080P gaming and makes any new card for 1080P appear over priced (both Nvidia and AMD cards)
Yeah I think the mass market won't go above 27-28" monitor size so 1080p/1440p is the resolution for most of those monitors. Most of the sub $300 GPUs can do those resolutions with ease and maybe in a year or two, APUs can do 1080p gaming with decent settings.

Probably a good reason why Nvidia is marketing hard for Ray Tracing, to push the GPU requirements for mid-high end market.
 

Z3r0k3wl

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I just upgraded my PC after 8 years, went from a 2600k intel i7 to a 2600 AMD... bought a new MB, a new set of RAM, and the CPU, even bought new storage... I did NOT buy a new video card. Hint Hint, NVidia, AMD...
Same here. Still using my 780ti cause prices are too stupid. How can you justify a top end card costing more than the whole pc?
 
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