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AMD and Nvidia GPUs see additional price cuts of up to 18%

(Source: Tech Advisor)
(Source: Tech Advisor)
DIY gamers should be thrilled for the latest GPU price drops, however, this also means that the overstocks may further delay the launch of the next gen models. Since the crypto market saw the sharp depreciation earlier this spring, analysts pointed out that profits for both AMD and Nvidia could significantly shrink, but a crypto market rebound may restore most of the lost profits later this year.

Last summer, the crypto mining boom affected the availability of GPUs, effectively doubling their prices and leaving many DIY gamers enraged. Nvidia and AMD saw great profits in 2017 either way, but did not rush to increase production to alleviate the gamers’ predicament. Finally, in early 2018 both GPU companies promised to ramp-up GPU production, a move that helped bring down prices closer to MSRP, however, the crypto market took a hit in March and many coins saw sharp drops in price, as well. This prompted many GPU-based crypto miners to abandoned ship, leading to decreased demand and ever-increasing supplies of GPUs.

Prices finally hit their original MSRP marks in May this year, but the supplies kept piling up with little to no demand from the crypto community, plus all the rumors about next gen GPUs determined gamers to postpone their upgrade plans. Retailers are forced now to offer considerable GPU discounts in order to liquidate their stocks, driving prices down by an average of 18% in June/July (according to 3DCenter). This could explain why Nvidia has not yet unveiled its next gen GPUs. The green team is most likely waiting for current gen supplies to dry up first, but this situation may extend well into Q3 2018, forcing Nvidia to postpone the GTX 11 series launch for Q4. Both Nvidia and AMD are clearly going to experience decreased profits this year.

Meanwhile, the two companies could further reduce prices to half the MSRP across all mainstream solutions if supplies remained tied up for too long. Another aspect that could speed up this process is the highly anticipated crypto market rebound that should occur later this summer.

Mid-range and high-end GPU price drops as of July 15 (Source: 3DCenter)
Mid-range and high-end GPU price drops as of July 15 (Source: 3DCenter)


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> Expert Reviews and News on Laptops, Smartphones and Tech Innovations > News > News Archive > Newsarchive 2018 07 > AMD and Nvidia GPUs see additional price cuts of up to 18%
Bogdan Solca, 2018-07-17 (Update: 2018-07-18)