AMD RX Vega’s pricing was “not just for launch, but ongoing”

[Coaxialgamer]

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There has been a lot of confusion and consternation surrounding the launch of the AMD RX Vega graphics cards, especially around the pricing. But now AMD are saying they’re pulling out all the stops to “get those prices to where we suggested when we launched them.”

 

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I spoke to AMD’s Gerald Youngblood on the showfloor of Gamescom today about the struggles with both stock and pricing of Radeon graphics cards, and specifically about whether we were ever going to see Vega at its original launch price. So, how much does Vega really cost?

“Our SEPs, and the price tag that we announced,” Youngblood says, “is our full intention of where we would suggest the product be priced. Not just for launch, but ongoing.”

What happened, though, was we launched the product and the demand was really huge. Now we’re focused on replenishing so that there is plenty of stock so we can encourage our partners to hit the SEPs that we announced.”

It’s primarily this filling of retailers inventory which AMD sees as key to getting the prices of Vega down to their original pre-launch levels.

“First of all we just need to drive as much stock as we can,” Youngblood says, “because inventory is really important in everybody being able to hit those prices. Then it’s just working with our partners to enable it, but we don’t set the price of their product. But we will drive, and do everything that we can, to get those prices to where we suggested when we launched them earlier.”

https://www.pcgamesn.com/amd/amd-rx-vega-launch-price-reduction (source)

 

Surprised nobody has posted this already .

Hopefully AMD can get prices in line with launch MSRP .

They weren't fantastic deals , but at those prices , AMD could've salvaged vega . At 100$ more , i can't see rx vega selling at all for anything but niche markets.

[PCGuy_5960]

AMD really needs to solve the supply issues, so that the cards can be available at the MSRP.

[Jade]

Eh. I like this explanation more. 

 

[Coaxialgamer]

Just now, PCGuy_5960 said:

AMD really needs to solve the supply issues, so that the cards can be available at the MSRP.

i think it's also a rep thing .Even if prices are out of wack , but msrp stays the same , AMD can still save face (what's left of it ) .

[Princess Luna]

1 minute ago, PCGuy_5960 said:

AMD really needs to solve the supply issues, so that the cards can be available at the MSRP.

If we base ourselves on the past it is amazing that these cards aren't on full shortage already

[Bcat00]

Pfff, the legal team has their thumbprint all over that statement.

[JoostinOnline]

5 minutes ago, PCGuy_5960 said:

AMD really needs to solve the supply issues, so that the cards can be available at the MSRP.

There isn't really a supply issue, except the one AMD has created.  You can easily buy a Vega card as a bundle.  They are restricting the number of cards that are sold individually.  It would be incredibly simple for them to make the cards available to everyone.

[TidaLWaveZ]

19 minutes ago, JoostinOnline said:

There isn't really a supply issue, except the one AMD has created.  You can easily buy a Vega card as a bundle.  They are restricting the number of cards that are sold individually.  It would be incredibly simple for them to make the cards available to everyone.

Companies actually have learned from Nintendo. The hysteria caused by these "shortages" is free publicity from the incredibly ignorant media.

[JoostinOnline]

2 minutes ago, TidaLWaveZ said:

Companies actually have learned from Nintendo. The hysteria caused by these "shortages" is free publicity from the incredibly ignorant media.

Well with this they had a reason with some validity.  Supposedly, they were worried that miners would buy them all up (that's what happened with the RX 500 series), which is why they introduced bundles.

[TidaLWaveZ]

6 minutes ago, JoostinOnline said:

Well with this they had a reason with some validity.  Supposedly, they were worried that miners would buy them all up (that's what happened with the RX 500 series), which is why they introduced bundles.

I'm not saying you're wrong because who really knows, but I am a little curious as to why AMD would care who is buying the cards. I'm of the opinion they just want to sell as many as possible regardless of the buyer.

[ErickS89]

So why price the 64 near a 1080ti which well dominates it in games "compute is a different story, but I'd suspect a titanxp would outperform in compute anyway but well double the cost"  

 

AMD can't afford to pull a Nintendo, they don't have the money to do so or fall back on.  

[JoostinOnline]

7 minutes ago, TidaLWaveZ said:

I'm not saying you're wrong because who really knows, but I am a little curious as to why AMD would care who is buying the cards. I'm of the opinion they just want to sell as many as possible.

I think you're right, but I don't think it's the only reason.  I noticed people were lowkey-pissed at AMD for not somehow magically preventing 500 series from being bought up immediately.  It's good for short-term profits, but not for their image.

 

Although personally I don't see why anyone would want Vega (besides mining) anyway.  Price to performance it's the same as Nvidia, but with more power consumption.  I'd rather have a card that games are already optimized for and could save me from buying a new PSU (and a couple bucks on my power bill).

 

5 minutes ago, ErickS89 said:

AMD can't afford to pull a Nintendo, they don't have the money to do so or fall back on.  

Lol on that note, it's kind of hilarious when Nintendo makes a bad move and people say "Nintendo is done".  They could go years without any profit and still be fine.

[TidaLWaveZ]

Just now, JoostinOnline said:

I think you're right, but I don't think it's the only reason.  I noticed people were lowkey-pissed at AMD for not somehow magically preventing 500 series from being bought up immediately.  It's good for short-term profits, but not for their image.

 

Although personally I don't see why anyone would want Vega (besides mining) anyway.  Price to performance it's the same as Nvidia, but with more power consumption.  I'd rather have a card that games are already optimized for and could save me from buying a new PSU (and a couple bucks on my power bill).

I agree that whatever they're doing is probably some sort of sales tactic, I just don't really understand how what they're currently doing will pay off for them.

[ErickS89]

@JoostinOnline Because Nintendo actually has money to just well sit and do nothing, AMD not only does not have that luxury they simply can't afford failure.  fuckups like this is what ends bad companies!  

[Dylanc1500]

1 minute ago, TidaLWaveZ said:

I agree that whatever they're doing is probably some sort of sales tactic, I just don't really understand how what they're currently doing will pay off for them.

It almost makes me wonder if it would be better if they would bite the bullet and say "sorry we did it" and move on. It seems like this blame game is more caustic for their image at this point.

[BuckGup]

1 minute ago, ErickS89 said:

@JoostinOnline Because Nintendo actually has money to just well sit and do nothing, AMD not only does not have that luxury they simply can't afford failure.  fuckups like this is what ends bad companies!  

Nintendo doesn't have money to sit on. They were in a world of hurt only a couple months ago. The switch has helped but console sales are down. Which I find funny as just yesterday I was playing my wii. 

[JoostinOnline]

2 minutes ago, ErickS89 said:

@JoostinOnline Because Nintendo actually has money to just well sit and do nothing, AMD not only does not have that luxury they simply can't afford failure.  fuckups like this is what ends bad companies!  

Well I don't think AMD is a bad company, and I don't think this will be the death of them, but I agree that they aren't at the same financial level as Nintendo.  Nowhere near it.

[TidaLWaveZ]

1 hour ago, BuckGup said:

Nintendo doesn't have money to sit on. They were in a world of hurt only a couple months ago. The switch has helped but console sales are down. Which I find funny as just yesterday I was playing my wii. 

Their stock has multiplied by 4 in the past five years... Not necessarily back to their peak but getting very close.

 

Though I would say they are able to get away with their price gouging more because of the extremely strong following, they have a stranglehold on their intellectual properties that's close to Disney levels

[JoostinOnline]

2 minutes ago, BuckGup said:

Nintendo doesn't have money to sit on. They were in a world of hurt only a couple months ago. The switch has helped but console sales are down. Which I find funny as just yesterday I was playing my wii. 

They're worth almost 33 BILLION USD.  And that's just the Japan company, not NOA.

[Jito463]

1 hour ago, TidaLWaveZ said:

I'm not saying you're wrong because who really knows, but I am a little curious as to why AMD would care who is buying the cards. I'm of the opinion they just want to sell as many as possible regardless of the buyer.

One possible reason would be gamer market share.  If miners buy up all the cards, then Nvidia will still have a near stranglehold on the gamer market, allowing them to practically dictate the state of gaming cards moving forward.  If AMD wants to have some say in the future of gaming on PC, they need to regain that consumer market share, which can't be done if no one can buy their cards for gaming.

[Taf the Ghost]

So much of this really comes down to thinking through why the Prices would skyrocket & why AMD was offering Rebates to the Sellers at the Launch. The Retailers are getting incredibly thin margin on the product. I'd be surprised if it's not going to cost them around 380USD for a Vega 56 to have in stock. That's why the Price skyrocketed.

 

Also, while AMD will providing RX Vegas for sale, they're main interest is going to be in the Professional space. All of the Vegas are on the same reference PCB, which is really expensive, as it's actually their Workstation design. AMD really should have only offered "Limited Edition" versions for sale first at a higher price tag, with the lower SEP for the AIBs. Nvidia at least got that right.

[Taf the Ghost]

4 minutes ago, Jito463 said:

One possible reason would be gamer market share.  If miners buy up all the cards, then Nvidia will still have a near stranglehold on the gamer market, allowing them to practically dictate the state of gaming cards moving forward.  If AMD wants to have some say in the future of gaming on PC, they need to regain that consumer market share, which can't be done if no one can buy their cards for gaming.

Mining Crazy also eventually ends, so the secondary market gets flooded and people stop buying new cards. Which happened last time. Appears AMD took a pretty sizable write-down on inventory the last time it happened. Plus there's also the reality that if no gamers are buying cards, Game Devs won't tune for the cards.

[BuckGup]

1 hour ago, JoostinOnline said:

They're worth almost 33 BILLION USD.  And that's just the Japan company, not NOA.

Doesn't mean they are making that

[AshleyAshes]

1 hour ago, BuckGup said:

Nintendo doesn't have money to sit on.

 

3 minutes ago, BuckGup said:

Doesn't mean they are making that

Just to be clear, Nintendo's cash reserves are in excess of 5 billion USD.  Nintendo actually DOES have money to sit on and it is a very large, comfortable seat with lots of cup holders.

[DoctorWho1975]

Kinda happy about this.. but we'll see. ROG Vega 56 and 64 are first out of the blocks for AIB's which is the pricing I think most people are worried about, especially with blower bullshit reference model. I'm hoping 499/599 for that price point and I think in order to sell well with huge power demands the card demands not much higher price can be supported.