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- Apr 10, 2003
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Best Buy and other retailers can't get the SEP pricing. They can't get the rebated cards.
I guess Bestbuy is losing money on each sale then? Tragic.
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Best Buy and other retailers can't get the SEP pricing. They can't get the rebated cards.
I guess Bestbuy is losing money on each sale then? Tragic.
It was created to give customers that want to play games on their cards value. Many people who actually play video games want to play those games. You can call them bundles, bundled, connected, value packs, synergy packs, whatever. In the end it is to give value to the customer that they are pursuing.
The 100 bucks extra for those games, aren't worth that much, they probably are only worth 15- 25 bucks a piece, with games there are three levels of margins, one for the publisher, one for the store, and one for store shelf pricing, when a game company sells a game online or bundling, all those margins are not there.
Essentially those 599 cards, that extra one hundred bucks just increase the margins for AMD by 10% or so.
These packs are AMD's packs, not the AIB's packs.
The 100 bucks extra for those games, aren't worth that much, they probably are only worth 15- 25 bucks a piece
One of the games has not even been released yet so you know it is going to be $60 on Steam. The other has been out for awhile. A gamer that wants a video card isn't going to cry over games that they want as it adds value to the bundle. What they did cry over was NewEgg charging $700 for the cards. So AMD marketing was spot on and NewEgg is greedy as usual. I don't see the big deal.
Also big retailers have ALWAYS gotten a better deal than smaller shops. My buddy used to sell ultra high end Phoenix Gold amps and other products back in the day. Some of those car stereo amps we sold went for $3,000 and more and we had the option to sell amps that cost $50,000+. We had at least 6 or 7 different levels of pricing from various distribution sources that we could tap to get product. If you bought a small amount of product, you had to get it from a 3rd party distributor that usually charged MORE than retail. The next level was right at full retail if you ordered say $500. The next levels gave increasing discounts until you hit $1,500 or more on your order. At that point you had the option to contact Phoenix Gold sales. They gave bigger discounts on their products and would fly a representative out to your next car stereo show if you purchased enough product from them. Of course we never reached those milestones as it required more tens of thousands in product per quarter, but we did get to discuss their product line with their CEO as he was awesome to talk to.
Guess what else? If you reached the level where you could order direct from Phoenix Gold, you got huge discounts! Imagine that! What a novel idea!
One of the games has not even been released yet so you know it is going to be $60 on Steam
We've also made some bundles as well, these bundles feature NO DISCOUNT, what you get is two AAA titles known as Prey and yet to be released Wolfenstein II PC games, worth a solid £50 between them.
It doesn't matter, I know how game pricing works, I was and still am in the game industry making games.
Imagine what, when a person knows exactly how much games actually cost retailers is a problem for you?
Game developers only make 40% of the actually cost of the games at most, and if they are selling it straight to a bundled package, everyone in the industry knows what the going price is, AMD will not take anymore than 25 bucks a games even for an unreleased game.
I see a huge deal, Best buy is not a mom and pop store, nor should mom and pop stores even been left out. Selling to retailers whom ever they are, yeah there can be price differences based on volume but the base price should always be similar, which in this case it is, as there are two different sku's but this was done for a reason, most times, card prices only increase per game is 25 bucks, I got my 1080ti with destiny 2 for 725 bucks, guess what 25 dollar increase. Destiny 2 isn't released yet. This time it was used to increase AMD's base margins. Because outside of a handle full of etailers, no one else can get that lower priced SKU. Pretty much AMD is saying sucks to be them. Pissing the people off that sell their cards is a great way to keep those cards on the store selves right? Now they are going to have even less visibility of their products in the long run. And people wonder why AMD sucks at marketing. Good job AMD.
OCUK got bundles and know what they cost:
I was reading some days ago and it was RUMORED that retailers had the OPTION to designate their incoming shipments as they see fit. So if they want to sell 25% of their incoming cards for $499 standalone and 75% of their stock in higher priced bundles, then it was up to them. From what I read AMD was handling the distribution of keys to customers for those that opt for the bundle.
How true that is? Hell if I know; this is a rumor thread!
That we don't know, but from what AMD stated directly, it seems there is no one else other than a designated few etailers, that can get that stand alone card. I am only going by what AMD has stated so far.
We also learned from the AIB partners that AMD provided a list of retailers that board partners should sell to, as those would be the companies most likely holding rebates to best support the lower pricing of the product.
This is the same r\AMD that crapped on Kyle and [H] about his polaris article, perspective is, they will point to anything that makes AMD look good.
Now anyhow, AMD is not at fault as Kyle stated for the pricing of Vega, what they are at fault with is what I stated above, essentially there are two prices and only certain stores get the lower priced SKU's, which no one really knew about till Gibbo opened his mouth.
AMD kept it vague cause they didn't want to show favoritism on their part to any retailers, who and who won't get the rebates. Now its out in the open. And its easy to see why AMD did this. The card really can't be sold at that SEP price of the stand alone piece.
Shit AMD should have made them sign an NDA about the rebate, that would have stopped them in their tracks.......... idiots lol.
I went through AMD's statements. They say they will restock all SKUs. The part about designated retailers, I'm not seeing anything about cutting off supply of specific SKUs, but according to GN,
Since AMD does not really control who the board partners sell to, AMD set up the rebate program and informed AIBs to try to sell to them since they would be selling at MSRP.
r\AMD has been brandishing knives at AMD every since Gibbo lied to make his company smell like roses for raising the prices on their customers.
Why would they have a rebate program to AIB's? Doesn't make much sense unless there is a need to help their AIB's out in keeping a certain amount of margins.
It has to be the price of the card that they are trying to mitigate. And if those rebates were given to AIB's are they passing it along to the etailers? Why would they need to do that. All of these convoluted passing on the buck, quite literally doesn't make sense.
End of the day if this was true, then AMD set up the rebates to keep their margins, and to hell with everyone else.
This is what it is.
AMD X amount of $ for Vega
AIB buys for X amount, with rebate and sells for Y amount which is higher than X
Retailers buy for Y amount and then when sold gets rebate.
Why not just lower the price of that sku to begin with?
Cause if they did that, that sku will look so damn screwed up against the sku with the free games
Gibbo said 50 bucks for the whole two games pack; which agrees with your estimation of 25 each.
I miswrote that sorry. The quote says that retailers are getting the rebates, seemingly directly from AMD. AMD is asking AIBs sell to them. That indicates more along the lines of AMD paying to keep pricing low. Gibbo talks about how some SKUs are sold out, but supply is low, that may explain problems.
Gibbo has zero rep with me as he lied already about the hash rates for mining to sellout his inventory at launch. He is just covering his ass for raising the prices on customers.
Still haven't seen a single local store get that lower priced sku.... which is contrary to what GN is saying. I would expect Best Buy to get that Sku at least.
Supply is low, demand high. For all we know, Best Buy sold out the standalone SKU way before.
This will be resolved one way or another in a month when supply should be resolved and everyone is flowing with cards. Then we can see the SKU and MSRP situation for what it is.
http://wccftech.com/radeon-rx-vega-64-msrp-pricing-update/
Add this to what Sapphire rep stated about build costs, yeah its all fitting together now, these cards can't be sold at $499 currently.
I would suggest that AIB packaging and delivery have greatly impacted Vega supply, and that has added a 7 to 14 lag time in the channel. I would expect to see a LOT of $499 MSRP cards back in the channel soon....IF....retailers want to price those at MSRP. Again, supply and demand come into focus here.Still haven't seen a single local store get that lower priced sku.... which is contrary to what GN is saying. I would expect Best Buy to get that Sku at least.
If they knew so much, why wouldn't they keep higher marging for a better part of those three months and also give AMD less time to prepare for the price drop?And it all goes back to nV's price drop of the 1080, this is the second time AMD got screwed over nV's price drops, the first time was Fiji with the 980ti pricing. Coincidentally happened 3 months prior to both launches! I think nV knows a lot about what is going on in RTG and is screwing with them any way they please.
Well there is the thing, they will limit that $499 sku, if those packs are truly to stop miners. The $499 sku can be bought by them too, so if that comes out with great availability, it doesn't do that right?
But if that $499 sku is limited, well gamers can't get them either, at least not when they want to get them, they might have to wait till they get back in stock. By doing it this way it forces some of the gamers to buy the $599 pack. Either way AMD gets more money then what the consumer wanted to pay to begin with.
Now if there was no rebates, well then it stops miners and gamers can get the card any time they want to, and AMD will get their money, but the cost is, looking bad against the gtx 1080, its priced out of the 1080 bracket.
All this reasoning for the packs, doesn't make much sense. They could have done this, the MSRP is $499 but currently they will only sell the packs.
If they knew so much, why wouldn't they keep higher marging for a better part of those three months and also give AMD less time to prepare for the price drop?
Whether or not this has had any impact is anyone's' guess.Well there is the thing, they will limit that $499 sku, if those packs are truly to stop miners. The $499 sku can be bought by them too, so if that comes out with great availability, it doesn't do that right?
But if that $499 sku is limited, well gamers can't get them either, at least not when they want to get them, they might have to wait till they get back in stock. By doing it this way it forces some of the gamers to buy the $599 pack. Either way AMD gets more money then what the consumer wanted to pay to begin with.
Now if there was no rebates, well then it stops miners and gamers can get the card any time they want to, and AMD will get their money, but the cost is, looking bad against the gtx 1080, its priced out of the 1080 bracket.
All this reasoning for the packs, doesn't make much sense. They could have done this, the MSRP is $499 but currently they will only sell the packs.
As far as I know AMD only gets some $ per GPU sold to the AIB partners on those boards. For the AMD reference boards they get whatever they charged the retail outlets. If the retail outlets add markup on either AIB or Reference boards AMD doesn't see a single additional cent.
If they knew so much, why wouldn't they keep higher marging for a better part of those three months and also give AMD less time to prepare for the price drop?
OK.yes and no, personally its not a card that interests me in mining unless they can seriously undervolt and drop the power to something like 200 watts for Vega 64 @ its current hashrates. At its current hash rates the 1080ti performs better than it in everything other than Eth, and Eth is almost on its last legs for mining.
You do know that AMD doesn't get game keys for free. The "bundle" is supposed to raise the price of the card in a manner that only a gamer would want to buy it. What miner would want to intentionally pay $100 more for games? A gamer who doesn't have those games would want them. Thus the card "should" fall into the hands of a gamer than a miner. That's the rationale behind the bundles.
I believe that AMD said that the $499 cards will be back in stock also. Now will Gibbo and other retailers actually sell those cards for $499 or will they mark them up to $699 and beyond? AMD sets the MSRP, but they aren't responsible for what Overclockers UK actually charges though for example. NewEgg can charge $1,500 a card if they want to if they have customers that are willing to pay that much.
Sorry but BestBuy is selling the SAME $599 game bundles that NewEgg and Gibbo have raised the price to the stratosphere. Bestbuy is sticking with AMD's MSRP. It makes NewEgg and others look like crooks for overcharging customers that are desperate for a card.
The truth is that Capitalism says that NewEgg is perfectly correct to raise the prices because customers are willing to pay it.
Here is a link to Bestbuy's Vega 64 cards. Notice that they have normal pricing. Sorry I'm not buying Gibbo's lies.
It was created to give customers that want to play games on their cards value. Many people who actually play video games want to play those games. You can call them bundles, bundled, connected, value packs, synergy packs, whatever. In the end it is to give value to the customer that they are pursuing.
Go tell the miners to stop buying AMD video cards and all of this bundling wouldn't have to exist. Until that happens, AMD has decided to become more creative with their marketing to get the cards into the hands of people that actually play games.
I guess Bestbuy is losing money on each sale then? Tragic.
One of the games has not even been released yet so you know it is going to be $60 on Steam. The other has been out for awhile. A gamer that wants a video card isn't going to cry over games that they want as it adds value to the bundle. What they did cry over was NewEgg charging $700 for the cards. So AMD marketing was spot on and NewEgg is greedy as usual. I don't see the big deal.
I was reading some days ago and it was RUMORED that retailers had the OPTION to designate their incoming shipments as they see fit. So if they want to sell 25% of their incoming cards for $499 standalone and 75% of their stock in higher priced bundles, then it was up to them. From what I read AMD was handling the distribution of keys to customers for those that opt for the bundle.
How true that is? Hell if I know; this is a rumor thread!
r\AMD has been brandishing knives at AMD every since Gibbo lied to make his company smell like roses for raising the prices on their customers. Let me rephrase that; Gibbo stretched the truth.![]()
I linked my invoice from yesterday where I purchased a Vega 64 for..... Drumroll please... $499.
Maybe you should look like I did instead of... Complaining about Vega being bundled with new games?
Maybe we should head over to the Nvidia section and complain about Destiny 2? I think that game is sh*t personally. Warframe seems like a much better experience. I think people should boycott Nvidia for including Destiny 2 as a promotion.
I linked my invoice from yesterday where I purchased a Vega 64 for..... Drumroll please... $499.
Maybe you should look like I did instead of... Complaining about Vega being bundled with new games?
Maybe we should head over to the Nvidia section and complain about Destiny 2? I think that game is sh*t personally. Warframe seems like a much better experience. I think people should boycott Nvidia for including Destiny 2 as a promotion.
I linked my invoice from yesterday where I purchased a Vega 64 for..... Drumroll please... $499.
Maybe you should look like I did instead of... Complaining about Vega being bundled with new games?
Maybe we should head over to the Nvidia section and complain about Destiny 2? I think that game is sh*t personally. Warframe seems like a much better experience. I think people should boycott Nvidia for including Destiny 2 as a promotion.
Good for you, but it so happens that other people who want Radeon RX Vega 64 for $499 can't get them $499.
$499 wasn't even a good price for Radeon RX Vega 64 to begin with.
Is NVIDIA charging $100 for Destiny 2?
Well I am glad there are 499 version exist for folks to buy.
Vega 64 value is assessed by what people are willing to pay for it. Since NewEgg sold out of Sapphire cards for $699 I'd say that it is worth at least that much?
What is wrong with bundling games with video cards? Are you anti-games?
Did you purchase the games in my game library? I LOVE the Wolfenstein series of games just as I loved the Doom series. I personally liked Prey until I broke the game and couldn't get out of one level; it has been patched many times since I last played though. So how can you sit here and tell every other person in this thread why they should hate Wolfenstein and Prey? I think Bethesda makes terrific games even though I don't appreciate all of them as much as others. I hope that I get a Ruby unlock for the new Quake Champions game if it is offered.
I think you're being combative for the sake of typing letters on your keyboard.