Earlier World of Warcraft team leader Mark Kern predicts that Nvidia will have problems due to the pricing of the upcoming RTX 4000 series.
Source: NVIDIA RTX 4090
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Graphics cards have experienced a price increase in recent years with production falling short of demand. However, things seem to calm down.
Nvidia unveiled their RTX 4000 series earlier this month, along with their price tags. These are the 12 GB and 16 GB RTX 4080 for $899 and $1199 respectively, and the 24 GB RTX 4090 for $1599. The latter will launch on October 12, while the 4080s will launch in November.
Source: GTC September 2022 Keynote with NVIDIA CEO Jensen Huang, NVIDIA via YouTube
It seems that some have objected to their price. Kotaku broke the news with the headline “Nvidia’s New 4000 Series Graphics Are Too Expensive,” citing discussions on social media where users complained about the price, saying the increased specs didn’t justify it.
“They’re trying to sell you a 4070 rebranded as a 4080 for $900,” one Reddit user mocked the 12GB card. In addition, previous allegations that Nvidia sold a graphics card with worse specs than specified and the settling of a bogus class action lawsuit has continued to haunt them to this day.
The “GTC Sept 2022 Keynote with NVIDIA CEO Jensen Huang” presentation, where the awards were revealed, also met with some backlash. Using third-party plugins, we see that the video has been disliked 44,000 times. In contrast, at the time of writing, the video was given a thumbs up by 63,000 YouTube users.
Source: GTC September 2022 Keynote with NVIDIA CEO Jensen Huang, NVIDIA via YouTube
Some on social media have already theorized that the price won’t hold for long, citing factors like AMD’s upcoming RDNA 3. Another of these dissenting voices is Mark Kern, Blizzard Entertainment’s former team leader. World of Warcraftfounder of Red 5 Studios and EM-8ER.
“nVidia will be in serious trouble after announcing pricing for the 4090, 4080, and the 407 – er, excuse me, 4080 12gb,” Kern suggested. “A short thread.”
Source: Mark Kern Twitter
“The new cards are seriously too expensive and deaf to the current state of the global economy. nVidia has been misled into believing that the 2x prices people paid for GPUs from the boom years of The Very Bad Thing That Happened are real, when they are very much not real,” he be aware.
Source: Mark Kern Twitter
“The prices of GPUs and 3000 series cards have been artificially inflated by various factors and are no longer around today. First, there’s the supply chain issues that have plagued the world, making availability a difficult thing, driving prices higher as shipping costs went up.” illustrated this point with a shot of the Evergreen blocking the Suez Canal in 2021, blocking $9.6 billion in daily trade.
Source: Mark Kern Twitter
“Demand was high because people were locked in their homes and gaming exploded as a way to pass the time. People were building new PCs, which doubled as home computers, justifying higher prices because the machines doubled the effort for work and play.”
“Then there were the Crypto Bros. Etherium prices shot through the roof, making GPU mining highly profitable. As much as nVidia denied it, the cards went to miners first instead of gamers,” Kern claimed. “And miners were willing to pay 2x MSRP for these cards because mining was making bank at the time.”
Source: Mark Kern Twitter
“If you were a regular gamer, you had an added incentive to pay more than the suggested retail price for a graphics card. Free money.” Core reminded his followers how “Governments all over the world somehow subsidized lockdowns. Here in the US, we printed checks and sent them to everyone.”
Source: Mark Kern Twitter
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“So free money, delivery issues, lockdowns, and huge crypto gains were all factors that allowed people to pay DOUBLE or TRIPLE for high-end GPUs. But where are those factors now?” he asked.
“Nvidia is charging $1,599 for the 4090, $1,199 for the 4080 16 GB, and $899 for the very limited 4080 12 GB (which should really be called the 4070). $1600, $1200, $900. Will any of those factors that pushed GPU prices still support it? Let’s see,” Kern asserted before breaking down each factor in sequence.
Source: Mark Kern Twitter
“Delivery doesn’t seem to be a problem anymore. The prices of sea containers have fallen as ports have been cleared or diverted. Chip factories have produced so many GPU chips that Nvidia sits on a GLUT of 3000 series chips and is at stake for billions in lovelace orders.
Kern highlighted how container purchase rates in the US and China had fallen by 50% amid rising backlogs.
Source: Mark Kern Twitter
“In terms of crypto, the price of Etherium has crashed to such an extent that it is no longer viable to mine with GPUs for it,” Kern learned. “So the miners are gone and won’t be buying 4000 series cards. In fact, they don’t buy 3000 series cards, and AIBs drown in cards they can’t sell. EVGA”
Source: Mark Kern Twitter
“What about the gamers? Well, two things,’ he asked. “First, gamers are pretty mad at Nvidia. They couldn’t get tickets at the suggested retail price, if at all, because the market focused on the miners first. They are also no longer locked up and many go out instead of gaming. GPUs are not a priority.”
“Gamers are looking for bargains, hoping used 3000 series cards will flood the market, and the excess of 3000 continues to drive prices below MSRP. Oh yes and … no more free money. No stimulus controls,” Kern hammered in.
Source: Mark Kern Twitter
“But worse than no checks, we have… the worst inflation in 40 years! It’s not just the CPI, but the rents are way up, and food is just crazy. Gamers are dealing with a 20% increase in the cost of living and people think it will get worse before it gets better,” Kern declared strict.
Source: Mark Kern Twitter
“Absolutely none of the factors that drove GPU prices 2x, 3x are there today. In fact, things are much worse! Nvidia CEO Jensen has seriously miscalculated the prices for the new 4000 series cards. smile he has won’t last long, “Kern predicted. “He has big trouble ahead.”
Source: Mark Kern Twitter
“The boom of buyers willing to pay for 4000 series cards is gone. Not when it comes to choosing a GPU versus food and rent. 3,000 used cards and discounted inventory will be snatched, but at the expense of Nvidia’s partners and Nvidia itself.”
“This is a HUGE opportunity for AMD,” he said theorized. “AMD’s announcement is just around the corner. If they recognize that we need healthy GPU prices (unfortunately still adjusted for inflation), they have a huge opportunity to take a lot of market share from Nvidia. I hope they do. Nvidia just messed up the ball.”
Source: Mark Kern Twitter
“Oh and those crypto bros that are GPU mining ether? What if prices go up again? That’s over,” Kern eradicated“You can’t mine even if the price goes up again because Etherium has moved to proof of stake instead of proof of work. Even the price of Eth won’t save Nvidia.”
Source: Mark Kern Twitter
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