This quarter, graphics card shipments are expected to plummet by anywhere between 30 and 40 percent, claims a report on Digitimes. Apparently, because BitCoin mining is losing popularity, especially GPU-based mining, demand for graphics cards is dropping to a point where shipment levels are too high for the current market.
This situation could have multiple factors contributing to it. Not only is there less demand for graphics cards, but due to the reduced interest in GPU-based crypto currency mining, many cards that have been used for doing so are getting offloaded for bargain prices on the secondhand market, making it very difficult for a lot of buyers to justify buying new hardware for gaming.
Normally, with this kind of a shift in the demand curve, we would expect the prices for graphics cards to cool down a bit due to the new equilibrium price, but that is not what seems to be happening. AIC and AIB vendors have been asking for AMD and Nvidia to cool down the prices, however, it seems that AMD and Nvidia have instead reduced supply, forcing the vendors to sit on their inventories and keep selling the cards at the current price levels. Hopefully, that won't last forever, and hopefully, this is the end of Crypto Currency miners inflating graphics cards prices. Regretfully, we do have to say that we fear it will take a while for the market to recover.