Report: Nvidia to Cut Prices in Nov. to Compete with AMD
By - Source: DigiTimes
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48 comments
Nvidia may be planning to reduce its GPU prices in November to fend off AMD in the $149 to $249 price bracket.
DigiTimes reported that AMD's announcement of its next-generation Radeon R7 and R9 graphics cards may have prompted Nvidia to consider reducing the prices of its graphics cards in "late November" to better compete.
These price cuts are targeted at the mainstream $149 to $259 bracket. The site also reported that ''according to sources from graphics card players," the company will also be releasing "1-2 GPUs" to better defend the price segment.
While much of this is still speculation, price cuts between competitors is a natural part of the process. In the end, this sort of competition will only benefit the end user.
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now Nvidia bash consoles please again
The reason Nvidia does not do a price cut now could be for a lot of reasons.
1. Nvidia can beat the new AMD chip. The 680 GK 104 chip was developed at the same time as the GK 110 chip. AMD was only able to keep up with the GK104 chip. Nvidia only released the Titan GK 110 chip and the 780 as AMD was able to improve drivers and OC the current 7970 chips. AMD is now coming out with a new chip, and I'm sure Nvidia has a pretty good idea about the power of that card. AMD is now on its 2nd gen and its rumored to only just beat the current GK 110 chip. There is nothing holding Nvidia back from releasing a faster 110 chip to beat the new AMD chip.
2. If someone is only willing to purchase a new gpu after the price drop, and someone is willing to buy a card before the price drop, then Nvidia should hold the higher price for as long as possible. Until the new AMD cards come out to justify a price drop, its better to maximize profits for now. Every company does this, even AMD, which is why for a short time, you saw the original 7970 at a higher price point than the gtx 680.
My 6950 is getting old, and it would be nice to get a new gpu. I hope AMD puts out a card that causes a price drop in the market. I don't care who wins in the short run, as long as capitalism works and companies compete, which AMD has been doing. There is nothing wrong with Nvidia charging higher prices, when nothing can compete. Graphic cards are not a right or necessary for life, so if you cant afford one, don't get one. If prices are too high, another company will make a product to under cut that price, and the consumer wins. Yay for profits constrained by competition!
Hopefully there are some performance enhancements in AMDs new lineup. I guess we will know on Octuber 3 or 15 when the NDA expires.
We just need some company that can produce AMD CPUs in 22nm to 14nm so that there would be some competition in CPU market too... In GPU market the situation is much better, because both Nvidia and AMD are using the same producers for the GPU, so there is not manufacturing advantage to any side!
The first slides that we got were a good mark for price reduction and it is going to happen even the new cards are even not out yet! Very good indeed!
Here is the problem on the CPU side. Desktop sales are flat or declining even as world population is growing. The desktop cpu market is not the future. AMD would have to heavily invest in research to catch up to Intel for destop cpus. AMD is better off investing into growing markets such as cell phones and tablets. Unless AMD stumbles onto some innovation in the cpu market, you are not likely to see anything come out that could rival Intel. AMD does have the advantage in APUs and that helped get a big set of contracts with Sony and Microsoft. The current cycle for processors has been for efficiency and not raw power. Intel beats ARM in processing power, but uses to much energy and has had little success in mobile as of yet.
What makes you think AMD did not try to beat Nvidia with a "full blown gk110?" If AMD could have put out a card that beat the best that Nvidia could do at a price point lower, they would have. AMD may still be able to do that, but its not from what I have seen. Granted, the gk 110 chip is larger and should be more expensive to make, but it steal beats AMDs cards at the price point they are sold. Maybe the R9 can change that. We will see soon.
290x is said to wipe the floor with Titan at BF4, thanks to it.
It is said to be the API used on xbone / PS4, which means most games will be optimized for AMD hardware OUT OF THE BOX, no additional effort for devs.
Provided, Mantle takes off, of course.