Why do graphics cards cost so much?

[Barny]

So, I've upgraded my sons system.

Motherboard (abit ks7-s) ~ $100
CPU ( AMD Barton 2500) ~$100
1 Gig Memory (Buffalo Winbond) ~$150

Graphics 9600XT $172

Why? I'd think a Motherboard or a CPU would be the high cost item.

Why is it that a stinking graphics card is the high cost item in a PC?

 

[JBT]

Probably because it has a GPU and RAM on it and you are getting a high priced card? You could easily go for a regular pro and have it cost 30-40 bucks less and barely any loss in performance.

 

[wacki]

Short life cycle, larger silicon usage do to larger micron printing process, High end GPU's use more transistors (I think) on dye than CPUs, The graphics card includes heatsink, high end ram, motherboard for the GPU, and the GPU itself. Thats all I got.

 

[DaveSimmons]

A64 3200+ = $400+, XP 2500+ = $100.
9800 Pro = $300, gf4 ti 4200 = $100.

Higher performance = higher cost.

The memory alone on a high-end card costs more than your CPU, since it's PC6400 or faster. Another big part of the price is the chip development cost, much more per unit than with CPU's since the volume of units sold is much lower.

 

[wake]

A fast graphics card for gaming is a specialty item compared to the millions of cpus and ram that is standard in PC's everywhere. The graphics card 9600xt is a very new item - powerful graphics card using less power than it's predessor and performing better, there is more development cost and time put into this than a CPU. CPY they only have to change their design slightly, there is little cost going from a 2.4ghz to a 2.5ghz cpu.

 

[Mitzi]

Along with the technical reasons, most high spec'ed graphics cards also have very short life cycles and huge R&D costs. Coupled with the fact that the market for such cards is very small means that the cost per unit is substantial.

 

[adams828]

Originally posted by: Barny
So, I've upgraded my sons system.

Why is it that a stinking graphics card is the high cost item in a PC?

as others have pointed out, it isn't necessarily. the card you got (9600xt) is a performance card, whereas the other components you chose are more of the midrange/value segment. as davesimmons said, higher performance = higher cost.

but to be fair, i do understand where you're coming from. it should seem like the cpu/mobo, which form the heart of your system, would be much more than an "accessory" like video. i personally can't see how anyone can spend $400-500 on a video card, but to each his own. mitzi's explanation is right on track i think, plus the fact that nvidia/ati know that for their performance cards, they can charge a bigger premium than the value/oem market

 

[Sideswipe001]

Because they can.

I personally think it's an issue of how much they do. Heck, in 99 I bought the "top of the line" GeForce DDR when it first came out...for about $250. Now top of the line cards go for twice that. Why? Because games need nice video cards more and more, because companies need to develop faster cards and more technology, and mostly, because they can get away with it.

As long as the people will pay, the prices remain high. Or does anyone argue that nvidia or Ati doesn't make a tidy sum on each of their cards? I'm sure the markup is substantial. After all, both compaies exist for 1 reason: To make money.

 

[GTaudiophile]

There are also only two players in the market right now. Some would say only one. That's no good for prices.

 

[lalala1239]

or u can wait till price go down but it will be out of date

 

[lalala1239]

 

[dullard]

The others have mentioned some important reasons. But all that matters is the bottom line. GPU manufacturers make ~$10 million to $40 million (profit) in the same time Intel and IBM makes ~$1 billion (profit). If they didn't charge that much, they'd be so far in the hole and would have gone bankrupt.

 

[FishTankX]

That, and they spend hundreds of millions on research every year. If you spent 300 million in research on a new GPU Core, how much would you have to charge to make it back??

Those engineers need their pay.

 

[Sideswipe001]

Originally posted by: dullard
The others have mentioned some important reasons. But all that matters is the bottom line. GPU manufacturers make ~$10 million to $40 million (profit) in the same time Intel and IBM makes ~$1 billion (profit). If they didn't charge that much, they'd be so far in the hole and would have gone bankrupt.

I don't find that to be a fair comparison. How big of a company is IBM or Intel compared to ATi or nVidia? How many more things do they make? IBM has a hand in a million things it seems, and Intel certainly makes more than processors. Can you say that about ATi? What DO they make besides graphics? What about nVidia? Graphics and motherboard chipsets?

They both make good money. They charge what the market can bear. I certainly don't think either would go under if their top of the line graphics cards were $100 cheaper, or if their budget ones were $20-30 cheaper.

 

[IncredibleHutch]

It's all about Supply and Demand. People buy products at that price with little question so the manufacturers know they can put such a price tag on their product. If they put out a card and the sticker price was 1000 bucks and it sold like wild fire then they could easily maintain those prices... However, if it didn't sell they would drop the price until the price range was right for what people would buy. Of course they don't just go and set stuff to 1000 bucks right off. Usually they pick prices that seem reasonable for what people would pay and to keep a competitive price with others.

 

[ViRGE]

Originally posted by: wacki
Short life cycle, larger silicon usage do to larger micron printing process, High end GPU's use more transistors (I think) on dye than CPUs, The graphics card includes heatsink, high end ram, motherboard for the GPU, and the GPU itself. Thats all I got.

Exactly. You're paying for a motherboard more advanced than a standard motherboard(more layers, more traces, more fun stuff), RAM more advanced than standard RAM(faster and wider), a more advanced HSF(tight space = more work to do), and a GPU that's as complex as a CPU at times; a graphics card is effectively all the items listed combined, which is why it costs more than any single item.

 

[Viper96720]

Price on graphics cards seem to be the same since a long while ago. I payed $200 for a geforce. Now look what you can get for $200. Something way better performing
than the geforce.

 

[zephyrprime]

Or does anyone argue that nvidia or Ati doesn't make a tidy sum on each of their cards? I'm sure the markup is substantial. After all, both compaies exist for 1 reason: To make money.

Remember, the highend cards you're talking about only account for 1-2% of the market. Do you know who sells the most video chips? Intel. That's right. Their integrated video is actually the biggest seller in terms of volume.

 

[Markfw]

One reason mentioned was transistor count. This GPU (9600XT) has 75 million transistors, and the P4 "northwood" core has 55 million.

 

[Mday]

Originally posted by: Barny
So, I've upgraded my sons system.

Motherboard (abit ks7-s) ~ $100
CPU ( AMD Barton 2500) ~$100
1 Gig Memory (Buffalo Winbond) ~$150

Graphics 9600XT $172

Why? I'd think a Motherboard or a CPU would be the high cost item.

Why is it that a stinking graphics card is the high cost item in a PC?

nVidia started with the GeForce which is a GPU. This new type of video controller is now powerful and complex enough to be called a processor which is actually is. Not to mention the assload of high speed memory on it (this is not the same as your desktop RAM).

 

[Jeff7]

Originally posted by: zephyrprime

Or does anyone argue that nvidia or Ati doesn't make a tidy sum on each of their cards? I'm sure the markup is substantial. After all, both compaies exist for 1 reason: To make money.

Remember, the highend cards you're talking about only account for 1-2% of the market. Do you know who sells the most video chips? Intel. That's right. Their integrated video is actually the biggest seller in terms of volume.

Yeah - All but on PC type stocked where I work (Walmart) has the Intel "Extreme" graphics - one other has something on the same level, an S3 solution, a ProSavage8 thing. Walmart apparently doesn't specialize in high-end graphics. But then again, it IS Walmart. The PC brands are Compaq, HP, and E-Machines.
I just checked their website - their "high end gaming systems" all come with GF4 MX440 cards.
The highest-end videocard sold there is an FX5600 Ultra.
That's why I won't work in the electronics department there. My advice to potential computer buyers would be, "Go somewhere else, like maybe Newegg."
Hmm, that got a bit off the subject of Intel Graphics. Oh well.

 

[Mr.IncrediblyBored]

Originally posted by: Sideswipe001
Because they can.

I personally think it's an issue of how much they do. Heck, in 99 I bought the "top of the line" GeForce DDR when it first came out...for about $250. Now top of the line cards go for twice that. Why? Because games need nice video cards more and more, because companies need to develop faster cards and more technology, and mostly, because they can get away with it.

As long as the people will pay, the prices remain high. Or does anyone argue that nvidia or Ati doesn't make a tidy sum on each of their cards? I'm sure the markup is substantial. After all, both compaies exist for 1 reason: To make money.

Either you bought the DDR after it was replaced with the GTS or you got a smoking deal. The Geforce DDR retailed for $300 when it was first released, as did the TNT2 Ultra, as did a number of other video cards. Remember the uproar when pricing was announced for the Geforce2 GTS Ultra?

I think people's memories get a bit fuzzy when they get nostalgic. There have been ultra-high end gaming cards on the market near $400 for a few years, and workstation-class cards > $1000 for even longer.

 

[Atlantean]

Because the graphics card is the most important part of the system... if you are a gamer. And the technology in a graphics card is more advanced than a cpu (more transistors).

 

[blazerazor]

Because it is NOT nessessary to the essential operation of your PC., and is essentially only for looks. The look of your games. And if your like me, a gamer since Commadore64. I now RARELY finish a game,. .. and alway cheat if I can... cause I like to play from 1level one with end game big guns. Blow everything up for 20-40minutes then its off to dreamland.

You dont really NEED it. But thats why you want it. Like import tuner cars turbo charged with 220+horsepower, NOS tanks under the seat, port and polished engines, loud ass exhaust pipes and huge air filters, that allow you to go speeds that would put under the jail. The only difference is chicks dig fast cars, not fast fps in Unreal200X. Man. I picked the wrong hobbie.

 

[Acanthus]

Because 256MB of 2.2ns DDR is expensive. :beer: