GPU prices have gone.... up? Are we screwed from here on out?

[Nemesis 1]

So we all assumed with the release of Fermi GPU prices might drop back to reality a little bit... hasn't happened. They've either stayted the same or actually increased over the past several weeks.

So if competition can't even bring prices down, are just totally screwed for good? What hope is there on the horizon that prices will ever fall from where they are now?

Not true . I never assumed such a thing, Just the other way around . Fact is what I said was dead on .

Looks like price fixing to me. How can ya charge more for on a smaller process. $399 is to much. Its already being looked into . News should break in aug.

 

[faxon]

i totally didnt read the thread, but i just paid $409 for this card a month ago
http://www.newegg.com/Product/Produc...82E16814150476

i paid $399 for both my ref design 5870s in sig as well. prices definitely went up for a while, but they're also definitely going down now, though considering it's been 6 months i would hardly call $10 an improvement lol

 

[nyker96]

Cost of manufacturing - NV wasn't able to produce cards that were cost effective to manufacture (530 mm^2 die, 384-bit memory bus vs. 256-bit, 1.2-1.5GBs of memory vs. 1GB). As a result, it was nearly impossible for them to undercut or even match ATI on pricing.

Not Enough Performance - NV wans't able to produce cards that were a lot faster than ATI's. If they had done so, ATI would have been forced to either lower prices or rearrange their product line (i.e., release a 5890 or position 5870 to compete against GTX470 while 5970 would have competed with GTX480). This would have resulted in lower prices for 5870/50s.

Limited Supply - Nv and ATI aren't able to produce enough cards due to TSMC issues with 40nm and low yields of NV due to the larger chip caused by its design. Limited supply resulted in higher prices for both brands.

Currently ATI has little incentive to lower prices considering their cards already cost less and aren't much slower. NV cannot lower their prices since they produced very expensive videocards (from a component perspective and chip size) and their yields are low.

RS hit all the right points on this. both company is having supply issues due to 40nm TSMC is not very good yields. On top of that now that ATI sees dx11 parts from NV isn't much of a threat, they are definitely not going to lower prices. The interesting thing is, due to low yield, NV doesn't have too many fermi available at hand so demand out paces their supply thus they'll just keep the prices high, not because it's a great part but simple because it's a 'limited edition'. so in foreseeable future, no one will drop their prices.