In a recent meeting with investors, Nvidia proudly announced that users who choose to upgrade to RTX 3000 series graphics cards will be forced to spend about $300 more than they spent on their previous GPU.
This massive increase highlights the impact the chip shortage has had on the market and shows how difficult it is to build a new PC in 2022.
At this point, most of us are familiar with the dangers of GPU deficiency. More than two years later, buying a graphics card is still difficult. Yes, there are plenty of GPUs available from various online retailers, but none of them are reasonably priced. While we’re seeing a steady drop in price, we’re still a long way from buying one of the best graphics cards at the MSRP like we ever could. The question is, will such a time ever come back?
During investor day, Nvidia confirmed that RTX 3000 series GPUs are much more expensive than the previous generations. Jeff Fisher, senior vice president of Nvidia, said it clearly: “The GPU offers more value than ever. Based on our data, they are spending $300 more than they paid for the graphics card they replaced.”
Some of that $300 can certainly be attributed to the chip shortage. While Nvidia’s graphics cards have a much more reasonable MSRP, it’s nearly impossible to find one priced at the intended amount and very rarely happens. Retailers like Best Buy sometimes hold special restocking events and sell the GPUs at MSRP, but those are rare and in Best Buy’s case now behind a paywall.
We can’t blame the GPU shortage for everything, though – prices have gone up anyway. As PCMag compares, the GTX 1070 was launched in 2016 with a suggested retail price of $379. Its current-generation counterpart, the RTX 3070, started at a price of $499. This price increase can be considered reasonable given the huge increase in the price. power compared to the GTX 1070, but it’s still an increase. Unfortunately, most people can’t get an RTX 3070 at that price anyway and so are forced to pay higher premiums than what Nvidia asked for in the first place.
Jacob Roach / Custom Hour
The pricing situation fits neatly into something else Fisher said: only about 29% of Nvidia’s gaming customers currently own an RTX GPU. This means that 71% of users are still using older GTX series graphics cards from at least two generations ago.
While this means good news for Nvidia – the market is still untapped and there is a lot of potential for future revenue – it means bad news for gamers in general. The fact that only 29 percent of users have been able to upgrade their PC since 2018 shows how expensive it has become to keep up to date with the latest hardware.
At a time when buying a new graphics card can sometimes be more expensive than building an entire gaming PC in 2017, it’s more important than ever for the GPU market to get some boost. Of course, having a plethora of GPUs readily available would lower prices. In that regard, things are looking good: Nvidia, AMD, and even Intel are all set to release the next generation of graphics cards this year. Perhaps with the increased supply, prices will continue to fall and become reasonable again one day.