Mid Range GPUs for High End Prices
Written by: psychoman - 20:32 May-06-2018

Now imagine miners never happened, I'm going to be talking pure MSRP here and all I have to say is, GPU MSRPs are overpriced as hell and finally someone else recognized that.

So I found a video that recognizes that and goes all through Nvidia's GPU history and all the GPU's specs: https://www.youtube.com/watch?v=5NVsUykuau4

So as many people have seen, I have many times stated that Nvidia(and AMD to a lesser extent but I'm focusing on Nvidia) has been releasing mid-range GPUs that people call high-end due to their price and performance, which in no way represents if a GPU's tier.

My biggest gripe yet has been Pascal and the gtx 1080 costing 700$ for what is/was at a launch a mid-range GPU that should have been cheaper than the gtx 560... Why should it be cheaper?

Well there are three factors to how much a GPU costs Nvidia to make:
1. Die Size -> The smaller the die size the more chips per wafer the less it costs per chip.

2. Failure Rate -> The lower the failure rate the higher the count of chips per wafer the less it costs per chip.

3. R&D costs -> The lower the R&D costs the cheaper per chip a GPU has to be sold at.

Additional there is wafer cost which since 2010 has scaled with inflation and only this year will see a 7% increase in price additionally and VRAM, which in 2016-2018 costed Nvidia and AMD for 8GB GDDR5(X) 8.5$, now it will cost them 11.5$ by the end of August and this is for them, NOT the user, it's cheap as hell compared to 45-50$ for 1GB GDDR5 in 2010.

So looking at the gtx 1080 vs gtx 560:
gtx 1080 -> 312mm^2 die Size, Pascal had less than 20% failure rate since launch, R&D priority was low as Pascal is a slightly tweaked Maxwell. Came out costing 700$ at launch in 2016

gtx 560 -> 332mm^2 die size, Fermi had 30-40% failure rate throughout it's run. R&D Priority was equal to the next architecture for the time(Kepler) so it costed more than Pascal to R&D. Came out costing 200-225$

All and all the gtx 560 had a 10% bigger die than the gtx 1080 -> 10% more expensive per GPU, almost twice the failure rate, so really, really more expensive per chip and had a higher R&D cost, yet it costed about 200$ in 2011(253$ with inflation in 2016) and the gtx 1080 costed 700$ in 2016(648$ in 2011).... and people blindly buy them thinking their are.

 

TL:DR -> MSRP of GPUs has been overpriced since late 2011, we have been buying mid-range GPUs for High-end prices(gtx 1080 mid-range GPU for 700$ at launch instead of 250$). Watch this video: https://www.youtube.com/watch?v=5NVsUykuau4


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Well, i bought my GPU last year almost at launch for only $309 bucks, so i think it was cheap compared to today prices that can go up to $443.

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Well yes, but it's about profit margin. One of the recent articles on GD showed Nvidia having a 134% growth for this year, thus profit margin as you get grow as much as the profit margin per product is, while in 2010 they celebrated the then "astounding" 29% growth…


The point is that the MSRP of the GPUs is overpriced, miners are NOT a factor here as they make GPUs more expensive for all parties involved, including Nvidia.

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the gtx 1060's equivalent from 2011 would be a gtx 550ti, which costed 150$ at launch in 2011(162$ in 2016) when it came out and again is a more expensive GPU for Nvidia to produce at the time than the gtx 1060 ever was… again they are selling at huge profit margins, that's why they grow so much every year and have become 5-6x times bigger in a 6 year period, compared to the 1998-2011 period as Nvidia was formed with a good amount of money to back it up.

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