Computer

NVIDIA RTX GPUs drop in price and are already cheaper than AMD RX

The NVIDIA RTX 30 and the AMD RX 6000 are crossing prices for the first time since 2017, where AMD was somewhat superior to its rival. Since then NVIDIA has always offered a higher price, where at times it has been really shot against AMD. But the tables are turning and now the fall in the price of GPUs is affecting Huang’s team more than Lisa Su’s, how is it possible?

More cards sold and greater product diversification

NVIDIA’s strategy coupled with falling miners’ interest in cryptocurrencies is driving prices down faster than AMD’s. If we look at the graph we will see that currently the green ones “only” have a 44% surcharge, while the red ones are already 59% above the MSRP, figures that are still nonsense, but instead of both decreasing the trend shows that AMD has serious problems.

If we talk about estimates and trends (get a little salt from here) analysts believe that NVIDIA would have to be in values ​​close to MSRP prices sometime later this year or early next year. With this in mind, the most obvious question is why? The simple answer is: different market strategies, we see the complicated answer right now.

NVIDIA and its ranges beat AMD and its priorities

Basically this would be the summary in one sentence, but let’s dig deeper to understand the reasons. NVIDIA launched a range totally focused on mining, such as its HX GPUs, and partly launched new versions of the existing ones for gaming with a firmware caption and with the LHR name.

The fall of mining has done the rest, since not only is it not so profitable to mine with green GPUs, but once the stock of the previous versions is exhausted and the current prices of the HX have made the cost fall purchasing one of your graphics cards plummets. It is true that this was simpler, since we started from a spectacular surcharge of 304%.

As for AMD, Lisa Su’s strategy is being quite risky. And it is that they have focused 80% of the wafers and chips coming out of TSMC at 7 nm for PS5 and Xbox, which leaves a remaining 20% ​​for all their products and their catalog. Rumor has it that AMD’s priority right now is this:

This is causing NVIDIA to increase even more the GAP in terms of sales in the market, since apart from being closer to the MSRP now they will also have more units available. AMD, for its part, has less stock for sale, which implies that the lack of these units increases their price, since they are still scarce.

Will AMD change the priority given that NVIDIA’s prices are now below theirs in terms of MSRP distance? It is likely, because they cannot let their rival roam at ease and eat them more market share. It is rumored that TSMC’s increased production capacity could end much of the problem, but there is no set date and by then it could be too late for RDNA 2.

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