Report; Nvidia's GTX 2xxx GPU's could come with a 100 percent price hike


(Ace Dragon) #1

All of this is not yet official from Nvidia, but if you’re thinking of having a powerful GTX 2080 for your next machine, you could be paying up to 1500 dollars (MSRP, not the supplier price) as Nvidia looks to avoid losing out on direct sales (a price that’s more than half of an entire high-performance gaming rig today).

No word yet on what AMD will do if this actually does happen (which would give them a tremendous undercutting opportunity).


(SynaGl0w) #2

The current ones are double… at least from the scalpers. I should have upgraded my rig last year.


(GCharb) #3

That’s it, I am going back to Amiga and the AmidaOS 4 port of Blender! :stuck_out_tongue:

Seriously though, and if this is true, I hope that Nvidia gets a big kick in the butt by AMD!


(thetony20) #4

While the recent cards from AMD haven’t exactly been super fantastic, if Nvidia was to increase the cost that much, without a matching 100%+ increase in performance that no one else can match, then all AMD has to do is just be ‘good enough’ at a much cheaper price point and Nvidia are sunk.

The other problem would be revenue flow, people would just hold on to their current 1070/1080 till it either dies or a game becomes just unplayable even at lowest settings. Either way, I really can’t see Nvidia basically pricing themselves out of the market.


(🚀) #5

Seems like Nvidia is using Moores Law for its prices?


(Hoverkraft) #6

I would take that with a grain of salt, I recall reading somewhere else a couple of days ago that prices would be standard for the new generation. What concerns me more is talk of blocking GPU mining at a hardware level. I wonder how they would be able to distinguish between mining applications and other GPGU usage, I hope they don’t implement something like a maximum runtime so GPU could be used only for short bursts and not hour-long computation like mining or rendering.


(LazyVirus) #7

I’m sorry for gamers but it’s time for renderers to leave GPU and build CPU rigs.
I can’t see how mining will be dropped and I can’t see how NVida&Co. will give up on the shitload amount of money miners bring.


(Hoverkraft) #8

I could theoretically see Nvidia now pushing GPGU cards like Tesla for mining and rendering. Of course they wouldn’t want to miss out on the profits mining brings, no way. Maybe it is just a convenient excuse, now that mining has made GPGU mainstream, to cripple GPUs so they can only be used for gaming and minor computations and have consumers buy add-on cards for heavyweight GPGU usage? I don’t want to go full Ace Dragon here, just thinking out loud. If anyone has any more info on how Nvidia plans to block mining on a hardware level please share. It reminds me a bit of the old “Quadro for accelerated wireframe” situation which was also locked on a hardware level.


(SterlingRoth) #9

Supply and demand. Do you think Nvidia likes watching scalpers sell their cards for a 100% markup? No, Nvidia (like any company in the business of making money) wants to make that money itself.

Obviously there is a demand, so they are going to adjust their parameters accordingly.


(JustinBarrett) #10

Kwatch!..this is utter nonsense…


(Mr_Flamey) #11

I’d rather Nvidia were making the money than scalpers on the internet that just make things miserable for people that want to buy a card for gaming or rendering. Of course, even if there are scalpers, you CAN buy a card for RRP if you spend enough time trying. Also, if Nvidia raise their prices to something closer to what miners are willing to pay, they will make loads of money but potentially lose a lot of good will from gamers, and if the bottom falls out of mining, then that leaves them vulnerable, so they have to take care with their pricing.

Personally, I hate this whole mining thing, because it seems so fucking stupid that burning electricity to solve useless mathematical problems with your video card can be worth something. If the video card was being used to render, crunch scientific data or do something else that has value, then I would actually support mining, but because creating a trackable ledger at the same time as rendering etc. might not work (I don’t know enough to know about this) we are just left with this crypto-currency goldrush inflating the price of hardware that can be used for useful things.*

*Making money is a useful application to the person that is making money, but because they are essentially making money by leaving an expensive computer running and burning electricity it seems somewhat stupid and illegitimate.

**I also just got home drunk, so sorry if this is a load of rubbish.


(apoclypse) #12

Even if the price of the cards are not as high as reported, I think Nvidia is preparing people for another price hike on the cards and normalize the prices to be even higher than they did when they released the 1070/1080.

I think this will have big effect on the gaming PC industry, possibly even stall that market altogether. I can almost guarantee you that even if the mining boom is over, prices will most likely never come down to what they were. Now that AMD, NVidia, and AIB partners can actually make margins on video cards (traditionally margins are very slim on video cards, especially for AIB partners), I don’t see them giving that up.


(JustinBarrett) #13

there is a point where costs outweigh the profit of mining…whether it be electrical costs or hardware…crypto currency may in fact be the future, but it is the most unstable market in the world the way I understand it…and it seems everyone wants to make their own currency now…if/when people like amazon start doing it…well then we know…it is likely going to just get worse(take off) from there…

but my initial remark was about Nvidia ‘doubling’ their prices…I do not see that happening…I can see maybe a 20-30% increase…but they are well aware that increases will also kill demand…people will wait for prices to drop to upgrade. I’m not reffering to large corporate render farms for example, but average Joe.

another odd complaint(purely personal) I have is that all the media is referring to the next gen as the 2xxx gen…but following Nvidias own naming conventions it will be the 11xx…they may have skipped the gtx 3xx, but I do not remember…however since they did have all the inbetweeners 5xx, 6xx,7xx, 8xx, 9xx and 10xx…so why does everyone suppose it will go from 10 to 20?

but I certainly have no idea about anything…I’m just ‘some dude’.


(Felix Kütt) #14

They didn’t, similar to gt/x 800 series the 300 was a mobile(read: laptops) only release.


(BeerBaron) #15

They would be doubling their MSRPs, not the street price. If a 1080Ti goes for 1200$ with an MSRP of 750$ while still selling out, then a 2080 that’s 25% faster will sell at 1500$ with an MSRP of 1500$. The difference is in who gets to pocket the profits.

On a related note, DRAM prices have more than doubled since their previous lows.

It’s not useless, it’s the proof-of-work for the system to fulfill its job. It’s what makes cryptocurrency like Bitcoin possible.

If there was significant demand for certain work (e.g. scientific calculation, rendering) that was (currently) worth more than proof-of-work for cryptocurrency, that’s what the GPUs would be used for instead. In practice, distributing work in a trustless and (relatively) low-bandwidth environment is difficult.

We already had two crypto mining booms, prices went up, cards sold out, the bubble popped, prices went down again. This bubble is much larger and longer, but it’s still a bubble. Production will catch up, mining profits will sink, demand will go down, prices will go down. Just be patient.


(burnin) #16

So what’s really new on the West front?!?
Richer getting richer. Poor getting poorer. Tyrant, the Head… Ideas (& ideals) long gone.

From August 2014…

It is a secret that NVIDIA’s profit margin on Kepler is much higher than 54%. Investors love that – you have to pay it. Guesses are that for the TITAN the profit margin is over 85% and the TITAN Z is even being over 90%. Compared to the industry, that’s a huge margin!

-source-
We have a saying: “Till people complain all is fine. You should start worrying when they become silent.”

… and there’s still a whole lot loudmouths around. :ba:


(Ace Dragon) #17

And what are the percentage of people who (initially at least) eviscerate a company for being greedy in terms of having an ‘obscene’ profit margin with a new product, and then buys the very product from said company? This would apply even if there was a solid alternative from a different company.

Nvidia’s price hike might suck, but the best way to get the message across is making sure there’s no gamer or digital artist who will buy the GTX 2080 (though it’s now a bit harder than it used to be due to the mining phenomenon). The CEO can’t make additional money unless there are customers.


(BeerBaron) #18

This is utter nonsense. First of all, the 54% in 2014 is gross profit margin for the entire company, but that’s not the actual profit, because gross profit only accounts for COGS, not total operations (including R&D). The net profit margin (i.e. what you would think of as actual profit) in 2014 was 14%.

Secondly, there’s no way in hell that NVIDIA had 90% gross margin on any of those Titan products. The DRAM alone accounts for more than 10% of the cost. But even if they did, the real cost of producing a GPU encompasses much more than its raw materials and assembly.

Nevertheless, does NVIDIA have great profit margins at the moment? Absolutely! Making a good profit is their job. But they’re certainly not making a 90% profit on those gaming GPUs.


(dgorsman) #19

A lot of this assumes that consumers (not niche users, such as someone running a hardcore render box) are getting appropriate hardware in the first place. How many have gotten dual or triple Quadro P5/6000’s while complaining about how badly they perform for the cost, when all they really need is a nice (relatively) cheap GTX 1050 Ti or 1060?


(burnin) #20

yes BB, have fun bashing over who’s chewing which gum

dgorsman

If you’re good (& promoting, demoing THE stuff) they will gladly give you one or two for free, because major buyers are companies with their ignorant (& often corrupted) staff (buying whole lots), pro freelancers mainly stick with AMD (at least those i know from pro video segment)

gamers are cannon fodder