No Lower GPU Prices Despite Reduced GPU Demand

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.

Follow Niels Broekhuijsen @NBroekhuijsen. Follow us @tomshardware, on Facebook and on Google+.

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  • vmem
    They also forgot that this past cycle has been especially boring. sure the 290X and 780Ti are great cards, but then what? both companies almost rebranded an entire generation of cards for the past cycle, including some of the high-end (280X and the 770). this leaves little reason for most gamers to upgrade
    14
  • Onus
    I think it is worth pointing out that mainstream buyers, the bulk of the market, were never buying high-end mining cards.
    Do you have more specific information on what the $50-$75 and $100-$125 segments are doing? Cards in these ranges are able to play any game, even if on lowered settings. With the economy as it is, I wouldn't expect kids asking for "gaming" cards to get any better than this; as you say, those wanting more are probably finding second-hand deals.
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  • InvalidError
    Worst case, the market will reset when 20-22nm products come to market and everyone will be trying to dump their 28+nm stock.
    5
  • elbert
    The overpricing due to currency mining has lasted to far in the cycle. Gamers are waiting for the new series especially due to full dx12 compliance. Being the support statement could mean less than half the full code set ill wait.
    -4
  • Onus
    I think it is worth pointing out that mainstream buyers, the bulk of the market, were never buying high-end mining cards.
    Do you have more specific information on what the $50-$75 and $100-$125 segments are doing? Cards in these ranges are able to play any game, even if on lowered settings. With the economy as it is, I wouldn't expect kids asking for "gaming" cards to get any better than this; as you say, those wanting more are probably finding second-hand deals.
    10