A sudden drop in prices of graphics cards have been observed in the past few weeks, many Nvidia and AMD graphics cards are available at, or very close to, their MSRPs. The situation is going to get even sweeter for PC gamers as, according to some rumors, the prices of these GPU’s are going to drop even further.
Now there are many factors that have led to these plummeting prices, we’ll be discussing each one of them:
Diminishing Cryptocurrency Demand
The cryptocurrency boom that we saw last year led to many people doubling or even tripling their invested money, but it also led to a sudden surge in the prices of GPU’s all over the world. High-end consumer GPU’s, with their excellent computing prowess, were ideal for crypto-mining and a sudden increase in the popularity of crypto-currency led to sky-high prices because the supply was just not able to catch up with the demand. Prices of some high-end graphics cards were more than double of their normal prices. AMD cards were well suited for mining of many cryptocurrencies, while NVIDIA 10-series cards did a great job of Ethereum mining.
But with the recent decrease in the values of cryptocurrencies, the demand for these GPUs also decreased. Other than that, the launch of dedicated mining rigs called ASICs also further reduced the demand for consumer-grade GPUs for mining purposes. Large mining operations are preferring these ASIC systems over the use of conventional graphics cards. As demand decreased, the huge supply-demand gap that was there before also started decreasing, which led to the low-prices of these cards that we see today.
Overstocking of 10-series GPU’s by Nvidia
A “major Taiwanese OEM” returned about 300,000 10-series Nvidia Graphics cards, according to a report by Seeking Alpha. This was a result of the decreasing demand for graphics cards that they’re facing. This means that Nvidia has an ample amount of stock of the 10-series GPUs in their current inventory and they have to sell them off before the 11-series cards arrive later this year. Its basic economics, whenever the stock is large and the demand is less, the prices will always take a dip.
Launch of Nvidia 11-series GPU
The Nvidia 11-series graphics cards are expected to launch at Gamescom in August. These next-generation cards will be based on Nvidia’s Turing Architecture. It’s been observed that whenever Nvidia launches a new next-generation GPU, especially ones with new architectures, all the previous generation cards experience a significant price-fall. This happens because the vendors try to clear out their inventories as soon as possible to make space for the latest cards.
The same is bound to happen whenever the 11-series hit the market and it will surely make the 10-series cards more affordable. This will be beneficial to those who’re on a tight budget and can’t afford to buy the latest cards Nvidia is offering and would rather go for the 10-series cards that aren’t the latest, or the most powerful but still offers great performance and value for money. Waiting for the 11-series to launch officially to score a 10-series card at a lower price than usual will save you some serious cash and you’ll still end up with an exceptional card without burning a hole through your pocket.
We can expect the same price drop from AMD too. AMD is obviously behind Nvidia in the GPU market in terms of price and performance. There are many cards that AMD offers that are priced similar to their counterparts in the Nvidia 10-series. If the prices of these Nvidia cards drop, in order to remain competitive in a market where they’re already behind, AMD will be forced to lower the price of their own cards too.
Act now, or wait?
If you are in an urgent need of an upgrade for your old GPU, now’s not a bad time to act and get some good deals for a newer modern graphics card. However, waiting a bit longer is still the better option as it will definitely lead to a better deal. By waiting, you get the latest and more-powerful GPU options and could get a current generation card at a serious discount. However, don’t wait for too long as the stocks of the 10-series cards will get over quickly once the next-gen Nvidia 11-series is announced.