Exactly! Console prices are not going up in 2020. Sony is going to charge substantially less for PS5 than they did PS3. AMD and nVidia have no reasonable excuse as to why they should be jacking up consumer dGPU prices when consoles are delivering more and more value with each generation. AMD will be selling heavily-discounted Navi in all the next-gen consoles. Why do they expect anyone to pay $449 for Navi on the desktop?
The reason why AMD and Nvidia are charging more for GPUs is very simple. Manufacturing costs, design costs, and shrinking dGPU market.
We complain about RTX 2070. But lets think about it. The GPU costs just 10% less to manufacture, in best case scenario, than manufacturing of GTX 1080 Ti, because of its die size, and because of the cost of GDDR6 compared to GDDR5X which is around 25% more. Design costs are not as high, for 12 nm process, but Nvidia did GT102, GT104, GT106, GT116 and GT117. Each design between 100 and 150 mln USD.
AMD? Design costs are around 250 mln for the GPU alone. The die is relatively small, but each wafer costs 12500$, compared to 6500 for 12 nm, and we do not know the yields. Effectively each N7 GPU can cost AMD the same, as it costs Nvidia 12 NM FFN. Plus there is GDDR6 memory cost. Each GPU die costing 10$, makes 80$ in just memory chips, alone.
Explain to me. If each GPU, with its PCB, shroud, packaging, etc costs 200$ to make, how do you expect that AMD and Nvidia will sell those GPUs for 300$ in shrinking, or flat market? The only hope for us is that manufacturing costs will go down, and alongside, the prices will go down, for GPUs.
Consoles, can cost 500$, because even if they have 12 memory chips, you get 120$ for GDDR6 memory, and you get SINGLE die designed, and yielded on the process. Which effectively can cost 60-80$. So 200$ for WHOLE system, not counting the SSD prices. And consoles are actually not shrinking. Heck, current projections say that market can even grow more in upcoming 2-3 years for consoles, and both Sony and Microsoft may see growth in this space.
And last thing. 3 000 000 000 000 $ did it cost TSMC to develop N7 process. Two times more than it cost them development of 16 nm FF process. 5 nm process will cost 5 000 000 000 000 $.
Where do you guys think TSMC will get that money back from, eh?