Now that both Nvidia and AMD have released their flagship and honestly quite expensive
GPUs… the next logical step is the release of mid-tier GPUs like RTX 4060, 4070 and RX
7800 and 7700.
But here is the problem.
What the hell is even a mid-range GPU in 2023?
Does a $650 GPU qualify as a mid-tier GPU?
Let's talk about it
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So as a gamer myself, I can totally relate to the frustration that many of you feel when
it comes to the cost of current gen GPUs.
While GPUs like RTX 4090 deliver breath-taking performance, they are way too expensive.
We all want to enjoy our games but we don't want to sell our kidneys!
What's more funny is that these new high-end GPUs aren't even selling that well.
We've already seen that the Nvidia RTX 4080 and RTX 4070 Ti, as well as AMD's RX 7900
XT and RX 7900 XTX, are all readily available at their retail price.
You can even find them in stock at your local Best Buy!
It's a far cry from the days of the GPU shortage, when it was almost impossible to find any
kind of graphics card, let alone a high-end one.
So to me, it's pretty clear that Nvidia and AMD were hoping for a different outcome in
2023.
They probably expected cryptomania to continue driving up the demand for GPUs, leading to
perpetual shortages and inflated prices.
But, as we've seen, that hasn't been the case.
So now these companies are left with these high-priced GPUs that don't seem to be selling
like they'd hoped.
Isn't it funny that Nvidia wanted to launch the mediocre RTX 4070 Ti as RTX 4080 12 GB
model and sell it at $900.
They really thought that gamers would just bend over and take it from behind.
Even at $800, the RTX 4070 Ti is really not a very good value for money.
Especially considering the fact that the last generation RTX 3070 Ti launched at a much
lower price of $599.
So here is the bad news for Nvidia and AMD as we progress through 2023.
We are in a global economic downturn, with the cost of living going up while people continue
to lose their jobs.
Gamers have less disposable income today than what they had a few years back.
Which begs the question: How will AMD and Nvidia position their upcoming mid-tier GPUs
like RTX 4060, RTX 4070 and Radeon RX 7800 and 7700?
I see only two options for Nvidia and AMD to get out of this mess.
The first option is to price the new GPUs pretty much in line with the existing RTX
40 series and RX 7000 series GPUs.
In other words, double down on the new 'normal' of super high priced GPUs.
So expect to see RTX 4070 at around $650, RTX 4060 Ti at around $570 and RTX 4060 at
around $500.
Similarly, Radeon RX 7800 XT may possibly be priced between 650 to 700 dollars while
RX 7700 XT may go around $550.
But I don't think that this pricing strategy will fly with gamers.
Who wants to pay $500 for an RTX 4060 which is rumored to be based on the feeble AD107
chip?
And to add insult to injury, Nvidia has reduced its memory size to 8GB while also chopping
the memory bus to only 128 Bits, and reducing the overall memory bandwidth to a puny 288
GB/s.
Remember that the last generation RTX 3060 came with 12 GB video RAM and a bandwidth
of 360 GB/s.
So if Nvidia and AMD insist on charging these exorbitant prices, I can't see these cards
flying off the shelves.
Customers are savvy and they won't pay a premium for a GPU that doesn't offer significant value.
And this time around, there won't be scalpers or bots to swallow up all the inventory and
create an artificial scarcity and FOMO among gamers
Which brings me to the 2nd option.
Maybe Nvidia and AMD will revert back to sane pricing, reflecting the current market situation.
But that would instantly put a huge pricing pressure on already released GPUs like RTX
4090, 4080 and RX 7900 XTX.
If you feel that an $800 RTX 4070 Ti or a $1,200 RTX 4080 is expensive now, think about
how ridiculous that pricing would appear later.
So most likely, Nvidia and AMD will have to cut the prices on all their GPUs across the
board.
We have already started seeing headlines like these suggesting that gamers are pulling back
and are not buying GPUs anymore.
Honestly, it's really hard to see how AMD and Nvidia can navigate out of this situation.
I think they have painted themselves into a corner.
Unless they decide to slash their prices, they're bound to see their inventory collecting
dust on store shelves.
It's a no-brainer - either they adapt to market demands or face the consequences of unsold
GPU stock
In fact, the Nvidia and AMD’s current situation could get a lot worse if Intel delivers on
their upcoming 2nd gen Arc discrete GPUs.
Intel has made steady progress with their driver quality.
It has been reported that Intel Arc GPUs have seen up to 87% performance gain since its
launch, thanks to improved drivers.
This has also resulted in an aggregate 43% improvement In DX9 gaming.
I am sure Intel will take all these driver learnings and come better prepared with the
2nd gen Arc discrete GPUs.
Some sources have even suggested that these new Intel GPUs may arrive early next year,
and offer Nvidia RTX 4080 levels of performance for far less money.
While these are all just rumors, we gamers can keep our fingers crossed and hope for
the best.
Whatever happens, I think it could get ugly for Nvidia.
And I cannot wait to see that smug smile on Jensen Huang’s face vanish.
Remember, just a few months back he said that the era of declining GPU prices is a thing
‘of the past’.
I hope he is proven wrong.
In the meantime, if you are planning to upgrade your GPU, checkout this video over here.
In this video I share my pick of the best GPU in various price categories.
So go ahead and watch that video and I will see you guys over there.
Bye!