Browse Categories
Why are graphic cards so expensive?
Credit: @Freepik
Graphic cards are essential components of our gaming Pcs, and without them there’s no way you can play anything. However, recently prices for GPUs have skyrocketed so bad we have upcoming graphic cards like the Nvidia RTX 4060 Ti, already getting slammed online for the price, given the specs.
So, today, we’ve been wondering why these graphic cards are so expensive and if there was something to be done about it.
The Shortage Excuse
During the pandemic, we’ve had our ears bashed with issues regarding shortage to justify the overpricing of graphic cards. It was real as it also affected the car and phone industries, but it’s not the only reason GPUs saw an unrealistic price drive. Even if the surge in the MSRP was due to the impossibility to supply enough products, why hasn’t the price decreased since everything went back to normal?
That’s because brands like Nvidia were already overpricing their products, and seized the opportunity to make more money by limiting supplies to create demand. It’s pure marketing, everyone wants to play the latest games with RTX enhancements, and people proved they were willing to pay more.
Scalpers & Crypto Mining
Before the World shut down, GPUs were already short on supply, and that’s due to two trends: scalpers and crypto mining. Scalpers have always existed, even before the internet. These people will generate a profit from taking control of a product. Since graphic cards are produced in limited quantities, the scalper can buy part of the stock easily at MSRP, hold on to it, and resell it at a higher price later. This leads to products with an already overpriced $800 MSRP, to be found on the second hand market at double the price in the span of mere months.
Scalpers are also helped by the rise of cryptocurrencies, since crypto miners buy GPUs in bulk to run their operations. Miners will target the best cards on the market, and that’s why even older models like the RTX 4090 cost over $2,000 nowadays. The demand has exploded, and the supply keeps getting shorted, so it’s inevitable that prices go up.
Credit: @Pexels
Can The Price Decrease?
The latest news surrounding the RTX 4060 Ti is quite alarming, as this new graphic card may barely match performances of the RTX 3070 with a price likely $100 higher than the 3070. If such is the case, we hope people won’t buy it to force Nvidia to get back to reality. Some may argue, it’s because the technology is getting more complex, but it’s not. A graphic card can have all the power you want. It still works the same way, and the cost should stay the same or decrease, not increase.
Why? Because, constructors have the possibility to ship thousands of these products and the more they produce the less it costs; however, they voluntarily limit this production to bank on scarcity. If people stop buying them, there will be a decrease in demand, and prices will eventually drop, so don’t listen to sham articles pretending you should stop complaining. Actually, we all should complain more, because these companies make billions by repackaging the same products.
Credit: @Pexels
Buying a New GPU, but to play what?
Another issue that should settle you on buying a graphic card or not this year concerns the games. If you already have a decent card running most games, why would you need to buy one? The answer is, you don’t.
If there were new games that redefined graphics as we know them, we could argue that investing in a new technology would guarantee years of advance, but it’s not the case, because it’s not 2008 anymore. Sure, new games are gorgeous, but there’s nothing revolutionary, no major step-up that justifies spending a month’s salary in a chip with a fan.
Credit: @Pexels
Will it get better?
It may sound bleak, but at the moment, given how technology evolves, it seems unlikely that we’ll get a new leap like we had for several generations. Some games from two generations ago still look better than what we’re currently playing, and no one bats an eye.
So, until we see a new game that blows everything away, we’re stuck paying for GPUs that don’t really change how we experience the games. The future seems to be based on optimization of what’s already available, but it’s the type of cycle that quickly comes to an end.
More Articles
