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Nvidia says falling GPU prices are ‘a story of the past’

Draugoth

Gold Member
Nvidia CEO Jensen Huang with an RTX 4090 graphics card.




Nvidia has just confirmed what many of us were already suspecting — GPUs are expensive, and Nvidia plans to keep it that way.

During a Q&A session with the media, Nvidia CEO Jensen Huang lifted the veil of suspense on RTX 40-Series pricing, and the insights are not what we’ve been hoping to hear.

Nvidia has only just announced the GeForce RTX 4090, RTX 4080 16GB, and RTX 4080 12GB, but not everyone was happy. It’s not the capabilities of these cards that were called into question, but their pricing. The RTX 4090 will arrive with a $1,599 price tag, followed by $1,199 for the RTX 4080 16GB and $899 for the RTX 4080 12GB. These prices are too steep, all things considered, but it now seems that this might be the new normal.

“The idea that the chip is going to go down in price is a story of the past.”
During the Q&A session, Jensen Huang was asked about GPU prices. His response was very telling.

“Moore’s Law is dead. […] A 12-inch wafer is a lot more expensive today. The idea that the chip is going to go down in price is a story of the past,” said Nvidia CEO Jensen Huang in a response to PC World’s Gordon Ung.
 

SmokedMeat

Gamer™
Exactly.

Seriously though, if this kind of price gouging is going to be the norm it looks like I'll be heading back to console gaming.

If AMD follows this jackass’s lead on pricing and size, I might just buy Steam Decks for my PC gaming, and go back to consoles as well.
 

winjer

Member
Tech companies like TSMC, nvidia, Intel, AMD, etc, enjoyed a huge boom in profits, thanks to covid restrictions and mining.
They increased prices on everything, because everything sold at any price.
Now they refuse to go back to a normal market, with normal profits. They demand that the consumer must pay for their greed.
They can only win if we buy into their schemes. Either consumers stand their ground against this exploitation, or it will become the new norm.
 
Good luck with that Jensen, my 3080 still running fine afaik, AMD is in play still with likely (much) better performance per watt and price even on the tippity top end.

Plenty of 3080s and 3090s being offset from miners too, so you might as well shove the 4080, the real 4080 and the 4090 right in your ass (y)
 

winjer

Member
BTW, this is what happens when there is no demand from consumers.

 

StreetsofBeige

Gold Member
Exactly.

Seriously though, if this kind of price gouging is going to be the norm it looks like I'll be heading back to console gaming.

Ewww.

Do console games have m&kb compatibility options?
Put it this way for pricing and profits. I dont know how much mark up all these resellers do distribute gpus to the public.

But Nvidia as a company has roughly a 30% profit margin as a company. Which is insane for a company that sells hardware. Granted, I dont know enough about them so perhaps they barely make anything themselves and all they do is the R&D and schematics and all the other companies make them.

Either way it doesn't matter because any company involved with hard goods or physical products almost never have a profit margin of 30%. That kind of margin goes to software companies and maybe oil companies when the price of oil is high. Yet, Nvidia still has 30%.

AMD historically has been a shit company losing money most of the time (that's why the stock price trickled down to $2 years ago), but the past 2 or 3 years their profit margins are suddenly about 20%.
 

GHG

Member
This will be confirmed by either gamers voting with their wallet or if AMD follows the same trend even though they have a small market share..

It will be interesting to see what AMad does for sure. TSMC have been gradually increasing their foundry rates over the last couple of years:


 

Banjo64

cumsessed
Going down the Sony route. Need to come to terms with the fact that the initial Covid market was a blip of insanity and not the norm. Obviously profits will drop in the following years. The awnser isn’t to start kicking and screaming.
 

Gp1

Member
I saw some rumors that Nvidia missed the mark expecting that the world would still be in the COVID disarray when the xx90/80 launch so they developed a expensive card doubling down on performance. Which doesn't seem to be the case because it looks like their performance without DLSS still is what we would expect on a generation leap.

Or maybe their mainstream line will be more "price conscious", and probably without all those DLSS bells and whistles. (Aka. Heavily cutting down tensor/"optical" cores)

Let's see how AMD will answer to that in November.
 
Last edited:

Zug

Member
Appart from the "shiny new thing" effect, there is no need for these overpowered/overpower-hungry cards in the gaming segment.
Most games are still developped to be playable with PS4s ...
The crypto mining bubble exploded, and now Nvidia is left with these... things, which probably weren't made to run games in the first place.

I'll be getting a cheap 3080 if I can, and wait for the dust to settle.
 

Raven77

Member
Yes, a non fiction story. The story you're talking about is what we call fiction. Prices WILL continue to call.

Basic economics.
 

GHG

Member
I just dont understand why should we spend so much money on so powerful gpu when you cant use its full potental ( graphic for today games are all designed to be in range ps and xbox power )
Can someone explain this?

Depends on what your setup is.

All niche but there are relevant use cases.
 
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