The most recent revival of Crypto-currency miners such as Bitcoin, and its overwhelming progeny, has had a huge impact on the number of AMD GPUs actually available for the normal people to buy; these are the people who keep their eyes tight on the new launches and in the end they are left behind. When asked the representative of AMD to express their views upon this show which is taking over this area they said that it might look great for their bottom line but actually, it is not doing any good for the company and the name of the brand. So, apart from the gamers, it’s a sad story for the developers themselves.
The miners don’t really care about the manufacturers of the graphic cards; they are not so much interested in any of the features that the board partners have added in to make themselves stand out of the competition, their only concern is to \ run the GPU ragged until it dies off. We are so drowned down this river of mining that we may not get the chance of going very far with our own bedroom setups, and believe it or not those days of peace have left us long ago. Now we see that mining’s about big commercial system farms with row-upon-row of mining rigs. Also, these companies; the manufacturers of graphic cards companies are seeing these commercial crypto-mining operations buying up ruthlessly thousands and thousands of AMD GPUs each month, leaving the gamers wondering where all the Radeons have gone.
Crypto-currency, apart from taking away all the products from the gamers, has also fueled demand for these graphic cards which as a result has taken up the prices of AMD Radeon cards through the roof in the recent few weeks, and the consumers are obviously feeling the pinch. This is a trend which has been marked several times in the past, but now these rocketing prices have touched new heights in recent days, with the price of the R9 290X briefly breaking the overwhelming amount of $900 over the weekend. Considering the card carries an official $550 MSRP, that’s a massive 64% over the premium.
Prices may seem to have come down slightly lately since the most recent exuberance; the R9 290X is currently is seen selling for a “mere” yes mere $800 at Amazon, while the Newegg has a handful of cards in the stock for the now actual ‘mere’ 700. The R9 290 is selling for $600 a small 1.5x markup on its $400 MSRP. The insanity, however, isn’t confined to the highest-end cards. Here’s a comparison of the official AMD MSRPs and the recent selling prices.
Even now the R9 270 cards are selling for 30-40% over the MSRP, while the R9 280X which is a GPU that’s supposed to cost no more than $300 is actually selling for $489. Yes, boom we can zoom in on one particular card thanks to the website price-tracker Camel Egg, and see the real problem. Now, save for a brief period in late November and the time immediately after Christmas, the gap between the official selling price and street price on the R9 290 has been seen to be gigantic. It also corresponds directly with the rise of alternative cryptocurrency mining what else the reason can be.
This whole chaos is not as simple as it might look. AMD has not changed its MSRPs, which implies that much of the price gouging Of AMD is likely dropping into the wallets of Newegg and Amazon resellers, not the poor Sunnyvale itself. Just because AMD hasn’t changed its MSRPs, of course, doesn’t mean it isn’t quietly charging higher wholesale prices, but its ability to claim some of the bubble’s earnings for itself is likely limited by previously agreed-upon contract prices as well as the volatile nature of the market which everybody is clear about. The Add-in board partners will never pay huge premiums for the chips when they are aware of the fact that the market for those processors depends on something as helplessly volatile as the crypto-currency markets.
Beyond making the life fun for reviewers, who have to take a lot of considerations into account while evaluating different GPUs, there’s yet another issue here. AMD’s whole GPU strategy since the late October of 2013 has relied on steep price cuts to fuel sales. The Radeon R9 290 and also R9 290X were killer cards nobody can contradict that this was partly because they equaled or even surpassed NVidia’s GTX 780 or GTX Titan, but that at far lower prices than the competitor.
At the amount of $400, the R9 290 was faster than GTX 780 and this GTX 780 is almost $100 more expensive that AMDs R9. When the R9 290 is selling for $600, the entire value which has built around AMD’s MSRP’s falls apart; emphasizing the volatile nature of AMDs market. An R9 280X for $489 is an absolutely a terrible investment; the NVidia GTX 780 demolish that price-performance ratio — but that’s exactly where things sit today in front of us.
These price trends may appear to be worrisome given that AMD has most recently launched its new Mantle API. It’s of utmost importance that AMD demonstrates strong demand for its graphics cards in gaming. If similar picture continues which is; GPUs keep on being sold into the crypto-currency market at large prime premiums could wind up driving gamers away from AMD and there is the need to win these gamers again or else the AMD will lose it all.
As these prices rise up this can eventually kill all the efforts that AMD has made for the gamers throughout the history. This is a sad picture which has been a part of this market for so long, and now the situation is getting out of hand. The gamers are the real investment AMD can make with its remarkable features along with the cost effectiveness it should not at any cost lose it.