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Old Yesterday, 04:22 PM   #181
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LordHawkwind
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Originally Posted by pax View Post
Well they say wafer production was increased by 40% in Dec due to demand. At some point between those who cant afford the current prices, millions are unemployed and more losing their jobs all the time at about a million a week in the US, and the satiating of consumer demand at the high end I dont see that taking a year.

I say by summer things will stabilize assuming no unusual production disruption.
Pax what do you mean by stabilize? At AMD's latest earnings call shareholders asked them why they wanted to produce more MBA cards at MSRP when they could sell them for far more and make more profit. Making big profits is AMD's & Nvidia's main aim, not selling cheap cards. Higher SKU margins mean bigger profits so win win for shareholders.

Whether we like it or not higher GPU prices are here to stay it would seem so we all need to just get used to the new normal.
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Old Yesterday, 11:04 PM   #182
pax
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Originally Posted by LordHawkwind View Post
Pax what do you mean by stabilize? At AMD's latest earnings call shareholders asked them why they wanted to produce more MBA cards at MSRP when they could sell them for far more and make more profit. Making big profits is AMD's & Nvidia's main aim, not selling cheap cards. Higher SKU margins mean bigger profits so win win for shareholders.

Whether we like it or not higher GPU prices are here to stay it would seem so we all need to just get used to the new normal.
A lot of gamers are not buying cards and are starting to look elsewhere now. I know I am. It may sound good for amd and nvidia to sell cards that are grossly overpriced, tho its more likely its the AIB's and retailers who are cashing in and not AMD from the latest rumors, but in the long run it can damage your business. Theres a reason why console makers sell at cost or even a loss around 500$. The console gaming market is near non existent at 1000$ or higher.

So good business sense would want the TAM to be fully adressed and not just the top 10-20%. If you abandon for too long or undeserve the lower 70-80% of the gpu market you can lose it. If anyone can really capitalize on this its intel. They can make silicon on a mass scale and if they can keep prices in the normal range where most people buy videocards they can grab huge market share away from both amd and nvidia.

AMD knows this.
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