Desktop GPU sales hit 20 year low, 42 percent fewer than last year.

[wseaton]

While there are many factors involving the GPU crash you'll have a hard time convincing me a major factor isn't the crash of crypto. The high end GPU market was extensively driven by miners, not gamers, with the later being limited to the mid tier market. NFTs were also blasted by the crypto bubble burst along with of all things the luxury watch market. Meanwhile Warren Buffet is laughing his ass off. Tulips anybody?

 

2D desktop gaming can't sustain > $1000 GPU sales forever. That's just stupid. 

 

We've gone from the Jet Age to the Information Age, but the information age is ending. My own invention, but the next Epoch in my opinion is going the Rationizing of Physical Commodity age. Ones and zeros can only go so far, and digital technologies that don't produce or improve physical commodities like food or green energy or housing will rapidly become marginalized if not irrelevant. Bill Gates is buying land....not bitcoin.  Ironically the Boomers got this.

[Giganthrax]

Scalpel-level MSRP + crypto crash causing market to be flooded with used GPUs + PS5/new xbox being affordable in comparison = nobody buys overpriced new GPUs.

[Stahlmann]

Everything gets more expensive > people don't have as much money to spend on luxury goods > $1000+ GPUs don't sell

 

Who exactly is surprised? I think corporations like Nvidia were living in their own bubble completely disconnected from reality when they thought the price boom will keep up for eternity.

[GoodBytes]

42 minutes ago, Stahlmann said:

Everything gets more expensive > people don't have as much money to spend on luxury goods > $1000+ GPUs don't sell

 

Who exactly is surprised? I think corporations like Nvidia were living in their own bubble completely disconnected from reality when they thought the price boom will keep up for eternity.

To be honest, they have to try. We saw this with the initial original pricing of the Ryzen 7000 series. The temp. price drop of the X series is what moved sales, finally, for that CPU. Now the non-X variation seem to have taken it's place with 99% gaming performance, and a little more notable performance difference in production. Excellent value for those who missed out on the temporary X price drop, or need to save every penny (small price difference, and cooler included).

 

What I wonder, is why BOTH AMD and Nvidia are still not doing price drop on their GPUs? How will they answer to their share holders in their quarterly planning about the low sale volume?

 

Do they think they can pull the "We are in a recession!" card? Maybe that will work, especially that there is no competition to compare with. (AMD get to say: "Look at Nvidia sales numbers, see they aren't great either!" and vice-versa).

 

All this to redefine higher prices in people mind for future profits? Maybe. They already squeezed the most out of their AIBs, making them virtual no profits, and now are just passing the cost on consumers, hence the massive price increase from non-reference design graphics card.

[starsmine]

2 hours ago, Stahlmann said:

Everything gets more expensive > people don't have as much money to spend on luxury goods > $1000+ GPUs don't sell

 

Who exactly is surprised? I think corporations like Nvidia were living in their own bubble completely disconnected from reality when they thought the price boom will keep up for eternity.

The data is for q3, not q4, so >$1000 gpus are not relevent.

[Stahlmann]

1 hour ago, starsmine said:

The data is for q3, not q4, so >$1000 gpus are not relevent.

There were plenty of >$1000 offerings even before the 40-series.

[mr moose]

20 hours ago, GoodBytes said:

 

What I wonder, is why BOTH AMD and Nvidia are still not doing price drop on their GPUs? How will they answer to their share holders in their quarterly planning about the low sale volume?

 

Nvidia will just tell them that sales are expected to be at an all time high because (swap some marketing data around and hey presto) it looks good.  AMD on the other hand will simply promise something glorious in the future and to just wait for it.

 

EDIT: Nvidia will also probably add that if you aren't buying gpu's then you should be buying more shares, because the more you buy the cheaper it gets.

[starsmine]

17 hours ago, Stahlmann said:

There were plenty of >$1000 offerings even before the 40-series.

A, they are not the builk, so even if 1000 dollar card sales go to zero it would only be a minor drop in the overall number

B, the only >$1000 cards in q3 were the 3080ti, 3090, 3090ti, and 6900xt So again, a minor drop in the overall number of GPUs

3080 and under were all under 1000 USD in q3
 

[WereCat]

30 minutes ago, mr moose said:

Nvidia will just tell them that sales are expected to be at an all time high because (swap some marketing data around and hey presto) it looks good.  AMD on the other hand will simply promise something glorious in the future and to just wait for it.

They'll just show a graph on which the RTX 4000 series sold up to 3x more cards than RTX 3090 ti.

[vertigo220]

On 12/30/2022 at 8:50 AM, Vordreller said:

But now it becomes public that the amount of units purchases has fallen. Which means less of the supply has been bought up. Which means demand wasn't actually as high as we were made to believe. And thus, the justification of the high prices was bullshit all along.

It's not supply or demand, it's supply and demand. Just because the number of units sold was low doesn't mean there wasn't high demand. I'm not saying this is what happened, and I wouldn't be surprised if some of it was artificial supply limitation in order to raise prices, but with all the issues due to COVID, they probably haven't been able to supply as many GPUs an normal, and that alone could explain a lot of this. So it's not like they had and sold 1m units vs 2m in previous years and so because they only sold half that means demand wasn't as high, but rather that the demand could have been just as high, or higher, but they only had 1m available to sell so that's what they sold. And, of course, due to supply and demand, that means they sell them for more. Again, I think the price is largely greed, but just wanted to correct that invalid correlation. I doubt anyone outside of Nvidia knows the real reasons.