There'd something fishy (1080-70)

[behappyftw]

I was thinking lately and figured that i dont understand how nvidia spent billions of dollars working in this technology, comes with a top of the line product, yet sells it at such low price. With the tier, they coud sell it well over 700$. Plus when would they get their money back and actually make profit? With billions onninvestement they would need to sell 1million 599$ gpus. I might and probably am wrong but i would like to hear your opinions.

[SkilledRebuilds]

They more Nvidia users, the better for them.

 

Have to make it enticing to join the party....

 

[Rune]

They make most of their money through datacenters and tesla cards.

[minibois]

Because they make the big money off their Quadro cards. Linus has mentioned this in a Techquickie video I think

[Lord_Karango17]

Gaming gpu's isnt their only source of income. If anything its one of the smaller sources of income.

They want a larger install base, and to do that, they need to give a compelling reason to upgrade to their newer gpus, and they can only do that by increasing the price/perf with each gen. Yea they could sell it for much more, and retain the same price/perf, but then not many people would buy them...

[xentropa]

I think they sell a lot more than 1 million GPUs or 300-500 dollar products per generation cycle.

[Sakkura]

At a higher price point, the profit per unit sold is higher but total profit may be lower due to reduced sales volume.

 

Also bear in mind they use consumer cards to drive volume, amortizing R&D investments and introducing economies of scale, with the enterprise products being much more expensive and profitable per unit.

[Spectrez]

Also, who are we to determine how Nvidia prices their stuff

Im fairly sure Nvidia has a solid idea of how to go about these things.

 

lets all hope we can enjoy a good solid GPU out of Pascal for a good price  

[Deli]

Sure Nvidia can sell their cards $3000 a piece. But how many gamers can afford them?

[behappyftw]

But even if they make their money with other things other than gpus, the investement of the billion dollars was used on gpu technology. So it woyld be independent of where they get their money, unless they are allocating profit from other area to gpu which usually do not happend

[Simon771]

Well 1 milion cards isn't that much realy.

You know how many gamers are there in this world? Well I don't know exactly, but I think they shouldn't have any problems with selling tons of those cards.

 

[gcubed]

51 minutes ago, Simon771 said:

Well 1 milion cards isn't that much realy.

You know how many gamers are there in this world? Well I don't know exactly, but I think they shouldn't have any problems with selling tons of those cards.

 

 

Errrm, NVidia spends $1 on research and development and comes out with a new desktop card that they are selling for $0.10. They do not have to sell 10 desktop cards to break even. Why? Because that same technology they developed also went into data center cards that they are selling for $10 each.

 

 

[Kryptyx]

Keep in mind that Nvidia plans to stay in the retail space this time around. That is the entire point of the Founder's Edition cards. Board partners get a cheaper price so they can mark up their own version but Nvidia is going to keep selling the Founder's Edition cards which is new for them. Check out Jay's new video.

 

 

[Simon771]

31 minutes ago, Kryptyx said:

Keep in mind that Nvidia plans to stay in the retail space this time around. That is the entire point of the Founder's Edition cards. Board partners get a cheaper price so they can mark up their own version but Nvidia is going to keep selling the Founder's Edition cards which is new for them. Check out Jay's new video.

 

 

That's ironic.

They want this card to be in retail for some time, but they increase price of it. ASUS, Sapphire, EVGA and others will do custom OC + better cooling and it will be cheaper.

 

If they wanted this card to stay in retail, they should make lower price than other companies. Buy founder edition card for 320$ directly from nvidia, or pay 350$ for AUS/EVGA etc. editions. That would make kinda sence, because users that can't afford to spend much, would just buy that founder for lower price and performance + cooling would be still great.

I guess that price is just because of design, but to be honest it's not that good looking. But that's just personal opinion.

 

I wonder when I will be able to order this card from Mindfactory or Alzashop in EU, and at what price  

[Kryptyx]

1 minute ago, Simon771 said:

That's ironic.

They want this card to be in retail for some time, but they increase price of it. ASUS, Sapphire, EVGA and others will do custom OC + better cooling and it will be cheaper.

 

If they wanted this card to stay in retail, they should make lower price than other companies. Buy founder edition card for 320$ directly from nvidia, or pay 350$ for AUS/EVGA etc. editions. That would make kinda sence, because users that can't afford to spend much, would just buy that founder for lower price and performance + cooling would be still great.

I guess that price is just because of design, but to be honest it's not that good looking. But that's just personal opinion.

 

I wonder when I will be able to order this card from Mindfactory or Alzashop in EU, and at what price  

They don't want to compete, they just want to sell their own. The board partners will likely be more expensive than the Founder's Edition for their custom coolers (not by much though). Also, like Jay said, blower style coolers have their place.

[MilfShake]

8 hours ago, behappyftw said:

I was thinking lately and figured that i dont understand how nvidia spent billions of dollars working in this technology, comes with a top of the line product, yet sells it at such low price. With the tier, they coud sell it well over 700$. Plus when would they get their money back and actually make profit? With billions onninvestement they would need to sell 1million 599$ gpus. I might and probably am wrong but i would like to hear your opinions.

This is where their marketing department researches demands and supply and match them to arrive to the best selling price.

 

Better price something $10ea and have 10,000 people interested than price them $50 and sell to 1000 people. Economics 101 really.

[Simon771]

10 minutes ago, Kryptyx said:

They don't want to compete, they just want to sell their own. The board partners will likely be more expensive than the Founder's Edition for their custom coolers (not by much though). Also, like Jay said, blower style coolers have their place.

If 1070 will be able to OC to at least 2000MHz on core, I will just buy cheapest one.

It will still run under 70°C which is nice.

And to be honest, I don't think any of those cards can be pushed far more than 2100MHz.

[Lurick]

1 minute ago, Simon771 said:

If 1070 will be able to OC to at least 2000MHz on core, I will just buy cheapest one.

It will still run under 70°C which is nice.

And to be honest, I don't think any of those cards can be pushed far more than 2100MHz.

Actually the overclock they threw on at the Nvidia event was supposedly done just a few minutes before the event and they didn't even do any testing, just grabbed a card, slapped it into the case, and tried a couple OC settings.

[Kryptyx]

1 minute ago, Simon771 said:

If 1070 will be able to OC to at least 2000MHz on core, I will just buy cheapest one.

It will still run under 70°C which is nice.

And to be honest, I don't think any of those cards can be pushed far more than 2100MHz.

Yeah we're really not sure. Nvidia's card definitely wasn't thermal throttling, which means GPU boost should be going all out. I'm sure some variants will go higher, like the hybrids and what not but I wouldn't expect anything too crazy.

[Simon771]

6 minutes ago, Lurick said:

Actually the overclock they threw on at the Nvidia event was supposedly done just a few minutes before the event and they didn't even do any testing, just grabbed a card, slapped it into the case, and tried a couple OC settings.

That's true, but to make any real difference they would have to push from 2100 MHz to like 2300. That's like 40% OC so I don't think that will be possible.

I would be just fine with stable 2000-2100MHz core clock <3 

 

[NumLock21]

It's the value cards that helps them make the most money not your GTX 1080 or GTX 1070.

 

[aarpcard]

You also need to keep in mind the GTX 1080 and 1070 are GP104.  The majority of NVIDIA's R&D budget went into designing GP100 (with HBM2) which general consumers will probably never see according to their previous statements.  That chip has been reserved for supercomputing markets focused on machine learning and other research and due to the high demand for the fastest processors possible in that market and the prices people are willing to pay for it, NVIDIA will make up their R&D investment quite quickly.

 

GP104, compared to GP100 was relatively cheap for NVIDIA to R&D.  It's basically a spinoff of GP100 and has a much smaller die meaning yields are higher and also chips per wafer are higher driving down individual cost.  Considering all that, there's no real reason to be surprised at the "cheap" MSRP's of GP104.

 

The reason GP100 will probably never see the consumer market is because the cost per chip would be prohibitively high to consumers and would not be worth NVIDIA's time and money to recoup costs for the development of that chip by selling it to general consumers.

[Bhav]

1080 and 1070 are Nvidias midrange cards being sold at high end prices. They've been doing this for 3 generations now because they've managed to get good performance out of them.

 

The make a huge profit on these cards.

 

The real high end Pascal will have HBM as pointed out above.

[Jaggsta]

Lets just say won't be a $599 card for few months after launch because every card is a founders edition good scheme once supply and demand lowers and AMD releases the Polaris 10 cards supposed to be this summer nvidia gets the free price drop to compete with AMD new cards.