There’s always a fight over GPU prices. GPU prices rose dramatically during the COVID-19 pandemic because production was cut, shipping was hit, and people stayed home. There’s been a drop in prices since then, although $1,600 GPUs have slightly distorted the market.
Apparently Nvidia is cutting production of its RTX 4000-Series desktop GPUs in favor of its gaming GPUs, so GPU prices are set to wobble once again.
Could Nvidia Cut GPU Output?
It looks like Nvidia is going to cut production of its RTX 4060 and RTX 4070 models by up to 50% compared to the original plans, according to Hardware Times. To meet the strong demand from gaming notebook manufacturers, the desktop chips would be turned into laptop GPUs. There’s no doubt that prices would rise if the world’s biggest GPU manufacturer cuts production.
There’s been rumors before about Nvidia reducing its GPU product. Benchlife reported earlier in 2023 that Nvidia was cutting its Nvidia 4070 production due to weak sales. GPU prices didn’t seem to be affected by those rumors.
The RTX 4000 isn’t the only thing speculating about. There’s a shortage of the super-high-specced RTX 4080 and RTX 4090, according to TechRadar. Smoke is the sign of fire, but it’s all speculation until Nvidia confirms it.
What’s the Best Time to Upgrade Your GPU?
It’s always a good question: should you buy a new GPU now? There are a couple of things to consider before you bite the bullet.
A report from Digital Trends says GPU prices are down from their pandemic highs in 2021-22-but they’re still way over MSRP on most models. The recent downward trend in RTX 4000 prices could reverse with less supply. Nvidia 30-Series cards barely dropped in price between September 2022 and January 2023. The average card is 42% over MSRP even after tariffs are taken into account.
Next up are AMD’s highly rumored RX 7700 XT and RX 7800 XT GPUs, which are expected to launch in September 2023. Based on AMD’s previous GPUs, its new GPUs will compete directly with Nvidia’s. Nvidia’s 4090 was undercut by around $600 by AMD’s RX 7900 XTX. Most regular consumers are willing to spend a month’s rent on a GPU, despite the Nvidia 4090 being the best in almost every way.
AMD’s pressure may stop prices from going too high while Nvidia reduces its GPU supply.
There’s Been a Massive Reduction in Crypto Mining
Keeping GPU prices low could also be helped by a third pressure relief. The Ethereum network no longer secures its network and issues currency using the proof of work algorithm since September 2022. Powered by the less energy-intensive proof-of-stake consensus method, it doesn’t need powerful hardware.
The Ethereum mining boom, which used GPUs to mine Ethereum, was one of the biggest pressures on GPU prices during the pandemic and following years. Prices stay stable without this pressure and without crypto mining eating up huge amounts of GPUs with every GPU generation.
GPU Prices to Watch
You might want to wait until AMD’s new GPUs launch later in 2023 if you’re considering buying one. AMD’s intervention could force Nvidia into action, even if the rumors are true.
It’s best to keep an eye on GPU prices.
