Video card economics question

[PDH]

To answer your initial question - it is probably because of some kind of magic.

[Eddie Teach]

To answer your initial question - it is probably because of some kind of magic.

That's your answer for everything. 

[FunkMonk]

At this point, it really is incumbent upon the governments of the world to ensure every family has a GTX 3080. I can't emphasize this enough. It's a basic human necessity to game at 120 fps, 4k resolution.

[viper37]

The simplest explanation is that they miscalibrated demand.  They might be able to squeeze out some profit by raising unit prices but at the cost of tainting the brand with accusations of price gouging.

Covid happened, in tandem with that.

That reduced their manufacturing capabilities.  In the case of AMD, it's even direr, since their new GPU and new CPUs are now killing it.

The 1st generation Ryzen have been outperforming Intel for half the price since day 1, only the very top of the line CPUs were able to compete, and lots of people were still afraid to buy AMD instead of Intel.  As of last summer, major OEMs were gunning for Intel.  Trying to find a decent AMD laptop was mission impossible.  Then it started changing by late summer/early fall.  AMD started killing it in the laptop department, even if most system were typically "lower budget" than Intel's equivalent offer (meaning, overall less performing hardware, few Ryzen 7 or Ryzen 5, mostly Ryzen 3 available, and often with 4gb/8gb at most, no SSD).  People who wanted a performance laptop went Intel.

But with the pandemic dragging on, I guess two things happened:
a) AMD's supply lines are stretched thin. They don't have that big a manufacturing capacity to begin with, covid has reduced their capacity.  Both Ryzens and their new GPU use the same manufacturing processing.
b) People are weary of buying pricey hardware, they turn toward AMD, suddenly, they not only have the better hardware, they have the demand that comes with it.  It leads to a rise in enthusiasts interests to buy AMD products.  Combined with lots of positive reviews, from people who usually snob AMD.  Reduced capacity + increased interests = no stock.

Now, let's say you are AMD.  Viper37 wants the latest Radeon 6800XT.  Dell wants 50 000 AMD Ryzen 5 5600HS. Guess who's gonna get it first?  Hence why we have trouble finding it.

As to the price question, simply because they ain't an oligopoly, as already pointed.  Nvidia does not want to lose market shares, AMD wants to gain market shares.  AMD has sold it's card for less than Nvidia for years.  80-90% of the performance for half the price.  People didn't buy it. "AMD is crap".  Now, things are changing.  AMD is pricing its cards similar to the previous generation, Nvidia wanted to cut the grass from under their feet with their 3080, they priced it for less than the 2080.  It worked.

I don't think AMD is selling that much video card, but in the mobile market, they really,really,really need to increase their supply.  Hence the reduced stocks for the video cards, dedicated to end users.

Also, Nvidia and AMD do not have "scalper divisions".  They do not sell to consumers, they sell to resellers (CPUs) and OEMs (GPUs).  And the Microsoft and to Sony.  Neither Nvidia nor AMD make video boards, other than their own reference board sent to OEMs.  OEMs, that's another matter.  MSI was caught red handed with a scalper having the same adress as their HQ, even though they tried to deny any knowledge of this E-Bay resseler.  Other manufacturers may be smarter about it.

[viper37]

At this point, it really is incumbent upon the governments of the world to ensure every family has a GTX 3080. I can't emphasize this enough. It's a basic human necessity to game at 120 fps, 4k resolution.

But what about 8k?

[viper37]

To answer your initial question - it is probably because of some kind of magic.

Seems some industry don't need as much policing as others

[crazy canuck]

If they increase their price and the other does not then purchasers, who have to wait anyway, will order and wait for the lower priced product.  AMD is going after Nvidia's market share, they are not going to achieve that buy letting Nvidia price their product lower.  And Nvidia won't willingly let AMD in by making their product more expensive.

You can lower the price later, once the pent up demand stops overpowering your production capacity. 

I guess the answer that some people gave here, that card makers don't want to appear to be charging extra to their early adopters, and would prefer to send them to the scalpers instead, makes the most sense.

Ok, continue thinking that short term profit is the goal. 

[The Brain]

[DGuller]

I'm a pretty good data scientist, and in fact my primary interest in video cards is for data science purposes.  However, as good as I am, I still can't find any correlation between my posts and CC's responses to them.  It's like I'm talking to a random number generator.

[PDH]

I'm a pretty good data scientist, and in fact my primary interest in video cards is for data science purposes.  However, as good as I am, I still can't find any correlation between my posts and CC's responses to them.  It's like I'm talking to a random number generator.

Beta refrigerator sunshine complex.  Expose treatment colander floor-wax.

[The Brain]

I'm a pretty good data scientist, and in fact my primary interest in video cards is for data science purposes.  However, as good as I am, I still can't find any correlation between my posts and CC's responses to them.  It's like I'm talking to a random number generator.

So you're a data scientist? Name all episodes where he has sex.

[grumbler]

I'm a pretty good data scientist, and in fact my primary interest in video cards is for data science purposes.  However, as good as I am, I still can't find any correlation between my posts and CC's responses to them.  It's like I'm talking to a random number generator.

If you understand that CC is generally more interested in condescending than communicating, you learn to ignore the bulk of his posts as, essentially, nonsense that not even he believes.

[Darth Wagtaros]

I am glad AMD is coming back.  Lack of competition sucked.