AMD showcased its flagship graphics card, the Radeon VII at this year’s CES. The price of the card was announced to be $699 at the launch.
After the announcement, several reports claimed that AMD is going to produce a very limited number of Radeon VII GPUs due to its high production cost. Then a recent report gave an idea about the number of units some European countries are going to get and to be honest, the numbers were quite disappointing.
Now, after all these rumors and speculations, a very interesting thing has been spotted. The AMD Radeon VII, which was launched at a price of $699 just a month ago, was listed for a price of only $599.99 on Newegg. The card is obviously out of stock right now, probably because of the limited quantities it is being produced in.
A price of $599.99 is even more astonishing for a card that has been reported to cost around $650 to produce. The HBM2 memory alone costs around $320 on every Radeon VII.
You can read about the complete and thorough break down of Radeon VII manufacturing cost here: AMD’s Radeon Vega VII costs $650 to Build; Retail Price Pegged at $699
If the estimation of a BOM number of $650 is true, AMD is technically losing money on every Radeon VII card it sells, which doesn’t make any sense.
The Radeon VII is intended to compete directly against NVIDIA’s RTX series of GPUs. The reason behind the decrease in the price could be due to the GeForce RTX 2080 being retailed at a price of $699 too. On top of that, the RTX 2080 comes with additional Ray Tracing and DLSS features too, which the Radeon VII doesn’t have. So AMD might have thought of decreasing the price in order to justify the lack of these features.
Here is a comparison of the leaked benchmark scores of NVIDIA RTX 2080 and AMD Radeon Vega VII: AMD Radeon Vega VII Vs NVIDIA GeForce RTX 2080 Benchmarks Leak Out