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Tuesday, 07 September 2010 09:10

Nvidia preparing to lose millions

Written by Nick Farell
nvidia

Price war coming on cards
The rumour mill has manufactured a yarn which claims that Nvidia is preparing to write off millions and slash the costs of its graphics cards by half.

Source of the rumours is a magazine called KitGuru, which initially thought that the cuts of Nvidia's fastest selling Fermi card, the Geforce GTX 460, were going to drop by $20. Now the magazine it thinks that $20 will not be enough to stem the tide of the Rise of the Radeons and an extra $10 will be needed.

What will be interesting, however, is what AMD's reaction will be. If this is indeed true, we would dare to predict that it will drop the price of its own cards.

However there is a downside to this for Nvidia. It does not really have the sort of profits at the moment to deal with a price war and a lot of the cards were flogged to the channel at the higher price.

This cash would have to be refunded which could cost Nvidia. If there were 67,000 GTX460 cards in the global channel, then that price protection would cost Nvidia a couple of million.

Last modified on Tuesday, 07 September 2010 19:09
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-12 #1 robert3892 2010-09-07 09:38
NVIDIA has been pushing out the G104 GTX 460s for some time with great success. The purpose of the price cuts are to compete with some of ATI's upcoming new video cards. If NVIDIA can simply sell more video cards at a lower price point it can still make money and more importantly grab back some market share from AMD/ATI.
 
 
+18 #2 fudzillalololo 2010-09-07 09:47
Article title does not make any sense

How about: "might"?
 
 
-72 #3 Fud_u 2010-09-07 10:17
Don't worried Nvidia, AMD is throwing out ATI brand to help you breath a little. Now people never going to know where that ATI card went the next time they look for one.
 
 
+20 #4 kapeeteeleest_peeg 2010-09-07 11:00
From what I've read... none of nVidia's cards are selling very well, including the 460's.

Lovin' ATi's silence... they must have something very, very, good just around the corner.
You know its gonna be good, cos' they're not 'talking it up' prior to release.

Also, another big clue is, none of the HD6000 picture leaks feature 'woodscrews' or a cut quarter of a motherboard as a 'pcb'... lol (Early Fermi Demo)
 
 
+5 #5 guideX 2010-09-07 12:46
Quoting robert3892:
If NVIDIA can simply sell more video cards at a lower price point it can still make money.


No, they are not ATi they have a far greater number of employees whom need to be paid. The salaries of hundreds perhaps thousands of employees needs to be paid for the period Q4 2009 - Q2 2010 by nothing but this card because the others are absolute disasters.
Profit on the physical device is just extra.
 
 
+25 #6 The_Countess 2010-09-07 12:56
Quote:
If NVIDIA can simply sell more video cards at a lower price point it can still make money


no, they wont.
whatever price point they pick, ATI can go lower at similar performance levels.
ATI's chips are smaller, so cost less to make, while providing similar or even increased performance levels.
for example the GF104 is bigger then the rv870, but even when fully enabled wont be able to beat the hd5870.

as soon as ATI isn't selling their cards as fast as they can make them they'll lower the price. no point in doing it sooner.
 
 
+2 #7 goldrunout 2010-09-07 13:23
i still don't get why nvidia cards don't sell. 470 costs as much as 5850 and has better performance and the 460 is simply better than any card on similar price, since the 768 version goes faster than 5830 and 1 gb version is just a bit slower than 5850 and costs less.
 
 
+33 #8 fudzillalololo 2010-09-07 13:37
Quoting goldrunout:
i still don't get why nvidia cards don't sell. 470 costs as much as 5850 and has better performance and the 460 is simply better than any card on similar price, since the 768 version goes faster than 5830 and 1 gb version is just a bit slower than 5850 and costs less.


Not everyone wants to have a mini-reactor in their PC
 
 
+17 #9 dtzy 2010-09-07 14:41
^
not to mention almost everyone who regularly upgrade their pc's already have 5xxx radeon cards installed

unless nvidia releases a really great(great) product, no one would bother switching
 
 
+19 #10 The_Wolf88 2010-09-07 15:05
Yes!

Drink Nvidia from the same cup which ATI drank 4 years ago !
 

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