NVIDIA asks retailers to sell GPUs to gamers over crypto miners

Speed-Racer2140d ago

NVIDIA contracts their work out to 3rd party FABs. Usually work orders would have already been planned months in advance and the premium cost to ramp up production might not be worth it. FABs also operate close to capacity, so it's not a case of just changing the numbers of pushing out more chips overnight.

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bluefox7552140d ago (Edited 2140d ago )

Sure, fair enough, and if this was 6 months ago, you'd have a point, but the mining boom started like a year ago, yeah? Hardly "overnight". Surely this has been enough time to at least start meeting the increased demand, no?

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Speed-Racer2140d ago

Good point. I was going to speak about volatility but the market has been out for a while. I think they fear a crash given how high Bitcoin prices have been (even though it's not the same mining technology) 🤷🏻‍♂️

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DivineBliss2140d ago

Increasing production around a market that could disappear instantly is not a smart move.

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chadwarden2140d ago

What you're missing is common sense. Do you really think Nvidia isn't trying to make as many as they can given the demand? GPU components aren't made at the snap of a finger.

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Cobra9512140d ago

That would be nice, but they'd get caught with their pants down if the demand suddenly collapses. The opposite would happen, where the excess supply would drive the prices down below where sales are profitable, or they'd be stuck with a lot of inventory they paid to make, but can't move at MSRP.

It's a bad situation all around. Their current tack is probably the best one, though I'd make limiting quantities sold per buyer more than just a suggestion. Most gamers want Nvidia, so the company has the power to dictate terms to its partners and vendors.

KTF262140d ago

"Surely this has been enough time to at least start meeting the increased demand, no?"

what makes it "Surely"?
nvidia isn't the only customer and smartphones chips don't keep enough a room for others
even RAM prices increase is caused by the high demand on RAM for smartphones
because FABs decided to decrease the production of PC DRAMs to increase the production of smartphones DRAMs

ngecenk2139d ago

the problem is the drop of cryptocurrency is expected. analyst predict the hype will fall and and the price will be 'normalised' sometime in the next 6 months. by that time, the market will be flooded with used GPU, enough to supply the market for more than a year (remember most crypto-miner use multiple GPUS). their sales will hit rock bottom by that time. However, the current price of GPU is extremely high due to massive demand. But not because of NVIDIA, but because of retailers. NVIDIA has 0 control on the price. So the profit goes to retailers instead of them.

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Parasyte2140d ago

Or maybe Nvidia and AMD can start making cards that are geared solely towards mining.

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ChrisW2140d ago

Purportedly, there are already GPUs and MBs being made that are geared towards that stuff. Though many are not too certain if it is actually going to help. What needs to be done, is Nvidia and AMD need to find a way to make GPUs crappy for mining and while maintaining their greatness for gaming.

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Cobra9512140d ago

Could be done with some internal crippling based on amount of load over a extended time. Mining stresses the GPU continuously, while gaming, like music, has an average load much lower than peak loads. But they'd have to develop and fine-tune the process, and implement it in silicon (because you know it would be undone at the software/driver level in no time). Then fab it, then convince gamers that the auto-throttling is for their own good, and please buy it. No, I just don't see it happening.

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KingPin2140d ago

they could build the software to do that right into the drivers itself. good luck running any card at full capacity without drivers. not to mention people will defend this as nvidia are clearly stating that their GPUs are to be used for gaming not mining...its not a case of "but i bought it so i can do whatever i want to with it." and if that is the case, nvidia should create a "miners range" which are gpus specifically for mining that cater to people who use that excuse.

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KTF262139d ago

as long as gaming cards profitable this won't work

Profchaos2140d ago

Miners will generally go for the 60 series for the same hashrate with less power consumption. Gamers will go for the 80 series for performance.

So what's the problem

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KTF262140d ago

and do you think all people can afford GTX 1080 specially with the current prices
the cheapest on amazon costs $769
more expensive than GTX 1080 Ti MSRP

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FreakyFox2140d ago

When prices rocket like this, people should stop buying right away to send a clear message, and its the same with CPU's, the fact they are still selling CPU's at high prices knowing full well those chips are open to the SPECTRE exploit, its a joke.

The Home User / Gamer have put these companies on the map, and now all they are interested in, is Quantum Computing and Self Driving Cars.

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DarkZane2139d ago

They should do the smart thing and make the next series of videocard incompatible with cryptomining.