Go Back   OC3D Forums > [OC3D] General Forums > OC3D News
Reply
 
Thread Tools Display Modes
 
  #11  
Old Yesterday, 07:23 AM
AlienALX's Avatar
AlienALX AlienALX is online now
OC3D Elite
 
Join Date: Mar 2015
Location: West Sussex
Posts: 12,580
Been talking about Navi over the past few days on various forums. I think what one of the guys said hits the nail on the head. AMD don't give a crap whether you buy Navi or not, hence the Nvidia like prices.

Basically if you buy a PC then yeah, they make a sale. However, if you buy a console or get into any streaming service then they make a sale there too, and a more important one (because it gets you away from Nvidia).

AMD dominate pretty much everywhere else now, and will make their money and stay afloat away from PC gaming. And this is something Nvidia simply have not managed, leaving them in a much more vulnerable position.

For many years consoles dominated the PC with sheer sales and user numbers. However, over the past decade that has changed. PC gaming has become far more popular (it was the ginger stepchild for ten years prior to 2008) and it's the consoles that are actually hurting right now. Given AMD are at the helm of two of those consoles (the Xbox and PS4) then it would be kind of daft to sell uber cheap GPUs to hurt their own interests. I reckon with the prices Nvidia are charging now the next run of consoles (PS5 and whatever MS are calling their console this week) being far more powerful than now that it would actually be quite stupid to bother with a gaming PC.

It did strike me as kinda odd that AMD would sell their CPUs at rock bottom prices yet inflate the cost of their GPUs to Nvidia levels. That isn't even bothering to compete they may as well hand the money to Nvidia.

And what have Nvidia done? well, they have reacted to it desperately trying to protect their main interest. If AMD started knocking out cheap GPUs they would sell by the bucket load, but hurt their main interests.

Just some food for thought I figured I would jot down before heading out today.

__________________
"Those really high 20 series prices are just place holders"



Reply With Quote
  #12  
Old Yesterday, 11:09 AM
tgrech tgrech is online now
OC3D Elite
 
Join Date: Jun 2013
Location: UK
Posts: 1,097
I don't think these forum musings are based in reality, this bit is explicitly false:

Quote:
Basically if you buy a PC then yeah, they make a sale. However, if you buy a console or get into any streaming service then they make a sale there too, and a more important one (because it gets you away from Nvidia).
AMD get essentially no money from consoles at this stage in the contract. They'd much, much, much rather you bought their high margin GPUs, they get orders of magnitudes more money per unit.

Quote:
AMD dominate pretty much everywhere else now, and will make their money and stay afloat away from PC gaming. And this is something Nvidia simply have not managed, leaving them in a much more vulnerable position.
This is very much the opposite of reality again. AMD get chicken feed from their consoles agreements at this point, and are entirely reliant on desktop & server markets for the bulk of their income over the last 4 years. In contrast, NVidia has successfully branched out to be the main player in AI and a leading player in the automotive industries push to self driving cars amongst many other lucrative secondary markets. NVidia get far more revenue from non-gaming sources than AMD do in both absolute and percentage terms.

Quote:
PC gaming has become far more popular (it was the ginger stepchild for ten years prior to 2008) and it's the consoles that are actually hurting right now.
Consoles & PC gaming are both far bigger than they ever were before, and both have almost exactly equal marketshare & revenue spent. Both are significantly overshadowed by mobile gaming. They're all giant parts of the biggest & most lucrative media industry there is (Roughly 25% Consoles, 24% PC, 51% mobile at end of 2018).

AMDs prices are super easy to explain.
Ryzen was slower than Intel, technically at every price segment, so they made it cheaper than Intel. They couldn't beat them on gaming or single threaded performance, so they slashed prices & added features.

Navi is not slower than NVidia in every segment. Navi competes very well in its segments revealed so far. So they compete on pricing too. They're still faster & cheaper than Nvidia, so they don't need to let NVidia gobble up an unjustifiable price premium. The actual prices themselves are not static, NVidia will respond, they will drop. AMD will undoubtedly drop them in response, they have a lot of room to.

What you're seeing is the difference between close competition between two roughly equally matched companies, AMD & NVidia, with the subtle pricing wars of fair competition(Thanks to both companies being well known as gaming/GPU companies), against the absolute slugfest that is the David vs Goliath battle of AMD and Intel, where they are fighting against a company with a long history of convicted monopolistic tendencies, who essentially created and became synonymous with the market they're fighting in, and for much of history could invest more R&D than all their competitors combined.

But more critically, Intel are selling tiny pieces of silicon for upto many thousands of $'s, their profit margins will be huge compared to even the most "rip-off" Nvidia parts. GPUs are several times larger & more expensive than CPUs and that gap is far wider with high end parts, NVidia's pricing is incredibly reasonable & close to reality compared to Intels(And NVidia's pricing actually scales linearly & fairly with the size/cost of their parts, as opposed to Intels exponential rises), and AMD simply doesn't have that much room to undercut them while making profit.
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump










All times are GMT. The time now is 04:37 PM.
Powered by vBulletin® Version 3.8.7
Copyright ©2000 - 2019, vBulletin Solutions, Inc.