BenSkywalker
Diamond Member
- Oct 9, 1999
- 9,140
- 67
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BenSkywalker, I wonder if your comment there in the last sentence goes any distance to explain that Jon Peddie Research data from back in August where it showed just an utter collapse of the discete graphics card total market value around 2 yrs ago. (~$6B -> ~$3B)
This one is a bit tricky, and a factor of the three different forces combining to make a bit of a perfect storm for that segment. First off you have the general economic conditions impacting the global economy. High end add in graphics cards, despite what we on this forum may think, are a luxury item. In terms of discretionary spending, it is going to see a sharper decline during an economic downturn then the broader economy.
Next factor you have is the fairly incredible rise of mainstream graphics relative to demands. The typical consumer is still using a 22" monitor, even sub $100 boards today can run almost anything at maximum details at that resolution(although perhaps not with extreme AA). You can see that while the overall revenue has seen a sharp decline, it is far more a factor of ASP then of volume(although both are clearly down). Part of this is what I think of as the 'Crysis factor'. If you look at the ASP of boards it is actually fairly steady in terms of what it will take to play Crysis at decent settings. Obviously this isn't directly the cause as Crysis sold a pittance in relative terms, but it plots out a performance target that the typical consumer has, and they spent as much as they needed to to get it. Mainstream parts are up from the start of the tracking period they use in that article(although off from their peak, they have been on a steady rise for a couple quarters while high end parts are still in steady decline).
I would say the decline in PC gaming in general is both a contributing factor to this decline and is compounded by the other two factors. Consoles are overall cheaper then putting together a new PC that is capable of playing games. Most PCs from even five years ago will still do everything else the typical consumer wants to without issue, gaming would be the only limiting factor. Most of think of the cost of converting a PC to a gaming machine simply as a function of the graphics card, but the typical consumer doesn't upgrade remotely close to as often as we do. So when faced with dropping ~$800 for a system that can game fairly decently or $300 for a console, particularly when we are close to title parity, a lot of consumers are going to make the jump(that isn't a huge factor in the overall sales numbers, but it is certainly a factor).
