How NVIDIA’s product stack should look like.

[Elfear]

This, precisely this seems so utterly paradoxical. You are correct, but we could also turns things over and take a look at the other side, the NVIDIA side. If they charge 'normally', they 'would' (very likely) make a bigger profit than they currently are - many people that are now buying/considering Radeons would be forced otherwise;

I have to believe that Nvidia employs some very savvy financial folks. I highly doubt the above would work better than their current plan. I'm sure they've crunched the numbers, made projections, and determined that super high prices will help their bottom line more than higher quantity in the current market.

From a consumer perspective I agree with you wholeheartedly but from a business perspective the market will determine the pricing.

 

[Xarick]

Watch AMDs 8k series cost more because their image has improved enough to warrant it. Plus Bitcoin mining.
But why would they do that?
BECAUSE WE PAY IT.
Value of a product = what people are willing to pay.
thats all.
AMD dropped their prices because people were not willing to pay. Nvidia did not because people were willing to pay a premium.

 

[SirPauly]

. Why in the heck would Nvidia want to undercut AMD when they're apparently not having a difficult time keeping sales up and getting large margins

nVidia did undercut AMD with the release of the GTX 680 and GTX 670 at launch, so it could be possible to see it again with a new launch, specifically with a GTX 770.

It also could be possible that AMD may be gaining some momentum as of late and a new family may help curb it and keep nVidia sales brisk.

 

[SirPauly]

Value of a product = what people are willing to pay.
thats all.

Value is subjective -- gamers may place value differently -- for me, I place value in pro-active for features and tools that offer immersion and offer more gaming experience potential --- another it may be strictly price/performance -- ultimately the market decides!

 

[zliqdedo]

I have no financial ties to the company and, in fact, I own AMD shares. What he (the OP) is saying is what we would all like, but what we would all like does not equal what is smart or the best move by Nvidia. Their new gtx770 (highest end GK104) is going to equal or beat an hd7970GE, and the cheapest I see it going for on newegg is $450 before any MIR. Why in the heck would Nvidia want to undercut AMD when they're apparently not having a difficult time keeping sales up and getting large margins? We don't know final prices or specs yet, and I've been vocal about the possibility of gtx780 being overpriced, but what the OP wants (for a $450 product to get refreshed at $300) is so far fetched from being a pipe dream it's not even worth mentioning.

I did not say that, never, not a chance in hell. I didn't say I wanted anything, and I certainly didn't say these prices would become a reality for this generation - on the contrary. Either you've grossly misunderstood what I'm saying, or you haven't actually read the whole OP; either way you couldn't be more wrong.

I have to believe that Nvidia employs some very savvy financial folks. I highly doubt the above would work better than their current plan. I'm sure they've crunched the numbers, made projections, and determined that super high prices will help their bottom line more than higher quantity in the current market. From a consumer perspective I agree with you wholeheartedly but from a business perspective the market will determine the pricing.

Unfortunately, you couldn't be more right. I have to agree with you - no way is NVIDIA missing out on profit, those savvy financial folks surely must've done their work. However, it seems that their approach is based on immediate profits, exploitation and seeking huge margins in consumer markets. Wouldn't you agree? I’d like to see more of a long-term plan – a gradual increase of profits. In the process, I’d also like to see NVIDIA try to establish a more solid foothold in the market and maintain the performance advantage by constant restless improvement (GTX Tick-Tock Ti Boost anyone?) similar to what Intel’s been doing since Conroe. This would do wonders for the GPU world – it would give is much better products in no time; much more powerful, even more importantly, much more efficient (100W for a mobile part is way too much, albeit a flagship), it would drive competition and thus development even further. How can anyone argue that this is a bad thing, or did some people just miss the point?

After all, nothing fatal has happened – Kepler is just one architecture; and although it appears that it would ultimately slow GPU progression at least a little, I’m not saying it’s ‘over’ or something. I just hope NVIDIA goes back to ‘normal’ with Maxwell and this trend of pursuing super high prices in the consumer space would be lost in time and never spoken of again.

 

[alcoholbob]

It would be nice if Titan was priced like the 8800 Ultra, at $829, instead of $999. Also now that all major etailers have sailes tax (since most retailers traditionally don't carry flagship GPUs anyway), it's basically $829 vs $1100...

 

[blastingcap]

It would be nice if Titan was priced like the 8800 Ultra, at $829, instead of $999. Also now that all major etailers have sailes tax (since most retailers traditionally don't carry flagship GPUs anyway), it's basically $829 vs $1100...

Adjusted for inflation, a $830 8800 Ultra would cost more like $932 today. http://www.bls.gov/data/inflation_calculator.htm

 

[Grooveriding]

It would be nice if Titan was priced like the 8800 Ultra, at $829, instead of $999. Also now that all major etailers have sailes tax (since most retailers traditionally don't carry flagship GPUs anyway), it's basically $829 vs $1100...

Yup. Never mind that the 8800ultra saw an almost $100 MSRP price cut not too long after its release, bringing it down to $749 as I remember it.

 

[Sleepingforest]

I think part of this problem is that APUs are beginning to cut the bottom out (where much of the revenue lies). As such, supply and demand would point to premium products at a premium price.

 

[Anarchist420]

The price of GPUs is so high because of patents; there is no competition free of govt interference in the GPU sector.

Patents make up a good portion of both AMD and Nvidia's profits... I'd say maybe as much as 1/3 especially since nvidia's sh**ty drivers are closed source.

 

[Enigmoid]

Prices are higher I suspect, largely because of intel locking out amd and nvidia of the low end segment (which though very low margin has very high volume) with the introduction of its igp. Few desktops use a discrete gpu, and even fewer laptops. The only way nvidia and amd can make up the difference is to force those who will buy the gpu (pc gamers) to pay more per gpu.