Demand for graphics cards significantly increased during the pandemic as some people spent more time at home playing games, whereas others tried to mine Ethereum to get some cash. But it looks like now that the world has re-opened and Ethereum mining on GPUs is dead, demand for desktop discrete GPUs has dropped dramatically. In fact, shipments of discrete graphics cards hit a ~20-year low in Q3 2022, according to data from Jon Peddie Research.
The industry shipped around 6.9 million standalone graphics boards for desktop PCs — including the best graphics cards for gaming — and a similar number of discrete GPUs for notebooks in the third quarter. In total, AMD, Intel, and Nvidia shipped around 14 million standalone graphics processors for desktops and laptops, down 42% year-over-year based on data from JPR. Meanwhile, shipments of integrated GPUs totaled around 61.5 million units in Q3 2022.
In fact, 6.9 million desktop discrete add-in-boards (AIBs) is the lowest number of graphics cards shipped since at least Q3 2005 and, keeping in mind sales of standalone AIBs were strong in the early 2000s as integrated GPUs were not good enough back then, it is safe to say that in Q3 2022 shipments of desktop graphics boards hit at least a 20-year low.
Despite slowing demand for discrete graphics cards for desktops (unit sales were down 31.9% year-over-year), Nvidia not only managed to maintain its lead, but it actually strengthened its position with an 86% market share, its highest ever, according to JPR. By contrast, AMD's share dropped to around 10%, its lowest market share in a couple of decades. As for Intel, it managed to capture 4% of the desktop discrete GPU market in just one quarter, which is not bad at all. Of course, the majority of AIB parts that Intel sold in Q3 2023 were entry-level models, but those were demanded by Intel's customers due to brand awareness and similar factors.
There is a catch about sales of desktop AIBs compared to the early 2000s though. Shipments of discrete laptop GPUs in the early 2000s were not as strong as they are today simply because there were not so many notebooks sold back then. Therefore, it is possible that in normal quarters sales of standalone GPUs for desktops and notebooks are more or less in line with what we saw some 15 – 17 years ago. Furthermore, since GPUs got significantly more expensive, AMD and Nvidia thrived in the recent years.
We already reported back in November that sales of integrated and standalone GPUs nosedived in Q3 as enthusiasts were waiting for GeForce RTX 40-series and Radeon RX 7000-series discrete graphics boards from Nvidia and AMD, whereas PC makers were trying to deplete stocks of their CPUs with built-in graphics. Yet, while the whole market plunged by around 25.1% year-over-year, the market of discrete GPUs collapsed by 42% YoY.
Jon Peddie Research recalls that declines of GPU sales in the third quarter experienced the most significant drop since the 2009 recession. Yet, for those of us who have been following the discrete desktop GPU marketfor long enough, the situation seems even more dire.
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Anton Shilov is a Freelance News Writer at Tom’s Hardware US. Over the past couple of decades, he has covered everything from CPUs and GPUs to supercomputers and from modern process technologies and latest fab tools to high-tech industry trends.
I mean, could the dramatically increasing costs be a contributing factor?Reply
bdcrlsn said:I mean, could the dramatically increasing costs be a contributing factor?
The root cause for next year and year after.
I understand that fab access might be part of the equation for higher costs, but once that is solved by sinking demand, whomever drops prices with acceptable performance and quality (I’m not touching nvidia until say, maybe 7 years after this connector is figured out), will see a huge market share gain.
I just don’t know anyone who cares about Ray Tracing, considering all the console and handheld gaming going around.
Well, this is Q3 data. That is before the new generation arrived and used mining cards started moving into the used market. 4Q numbers will make it obvious if it is a real downturn or just buyers timing their purchases.bdcrlsn said:I mean, could the dramatically increasing costs be a contributing factor?
I was planning on upgrading once the 4000 and 7000 series dropped. However, at these prices I am not even a little bit interested. I imagine many people are in the same boat. I would consider a 4080 at $799, and an 7800 XTX (or whatever it will be) at around ~$50-$100 less. Nvidia has lost their mind (AMD not far behind) with these prices.lmcnabney said:Well, this is Q3 data. That is before the new generation arrived and used mining cards started moving into the used market. 4Q numbers will make it obvious if it is a real downturn or just buyers timing their purchases.
I am actively monitoring the situation and hope both companies reduce prices dramatically. However, I am not holding my breath.
I am surprised about the low sales from AMD. Just this past month I managed to buy 2 AMD radeon cards for me and my son for a good price. Then again, the sales figures doesn't account for Q4-2022Reply
This, or I'd pick up a RTX 3080 for $500 or so. At current prices, forget it.Jagar123 said:I would consider a 4080 at $799,
I'm not touching AMD's 7000-series unless/until they perform closer to expectations. Based on the specs, they're not as fast as they should be. It might take a refresh, for them to truly sort out the main issues.
Well it's not hard to figure the reasonsReply
even a relatively old GPU can play games acceptably for most people (30-60FPS)
miners are selling their rigs
new cards are extremelly expensive. Few years ago 300-500$ was flagship tier. now for this price you get low-middle range.
consoles are more popular for gaming than PC. PC Gaming was on a rising 10 years ago thanks to the MMO trend. not so anymoreThe new cards are good mostly for VR, 4K gaming and Ray Tracing , but those technologies are not used by a majority of gamers which find former generations sufficient (1660ti is still very popular because it just works)
Gamer Nexus made a good video on the subject of the 4080, but some reasons still applies to the whole generation
Jagar123 said:I am actively monitoring the situation and hope both companies reduce prices dramatically. However, I am not holding my breath.
I'm still using a 4670k and 1080, so I am way past due on the upgrade. However the market is resisting returning to rational pricing. The rich people can always buy what they want and it appears that regular gamers have been conditioned to accept the $1000 GPU as normal. If things don't turn around and PC gaming continues on its slide into a boutique upscale / fanboi market than I will likely not replace my PC and buy my first console since an Atari 2600. I can accept the $5-600 price point for a premium GPU, but not for a midrange one.
Not from what I've seen. In 2018 or thereabouts, I recall seeing a plot of the inflation-adjusted prices of flagship GPUs for the preceding 15-20 years. Leaving aside Nvidia Titan and dual-GPU models, I recall they made a fairly sound case that flagships tended to run about $700, up to and including the GTX 1080 Ti.neojack said:Few years ago 300-500$ was flagship tier.
The RTX 2080 Ti was perhaps the first to buck that trend, with a MSRP of $1000.
just a few weeks ago, I was Christmas shopping at a large mall. Went look inside some pc stores, all I could see are boxes of Nvidia cards. Mostly various RTX and GTX 1630 (why is the box of this thing so big? LOL). Not seen any AMD card on display. When I asked a store girl, she said Nvidia cards sell more in their store than AMD.Reply
EDIT: forgot to say, there is indeed a big price drop. RTX 3060 was around 29000 pesos when I visited February 2022, now on Dec 2022 - it's only 23000 pesos from the same shop. That's approx 100$ drop in price.