GPU prices could come ‘crashing down’ with scalpers getting burned
techradar.comGraphics card prices are likely to come “crashing down” from their inflated price tags in the future, according to a new report from an analyst.
Jon Peddie, who heads up Jon Peddie Research (JPR), shared his latest thoughts on the graphics market, and in particular desktop cards for PCs, in an article for Graphic Speak(opens in new tab) (spotted by Tom’s Hardware(opens in new tab)).
The report includes an interesting analysis of the average selling price of AIBs (meaning add-in boards, a fancy term for PC graphics cards), complete with a graph which shows pricing has been rising gradually since 2014, but really shot up during 2020 and 2021.
In the US from 2014 through to 2019, we saw the desktop GPU go from an average price tag of about $270 to around $440, but in 2020 the average selling price leapt to over $650, and further to about $780 in 2021. Which is, of course, ridiculous, but we all know the reasons why, and Peddie goes on to underline them.
Peddie observes: “PC gaming and mining AIBs have increased in price by at least 2x, maybe 3x, over PC notebook GPUs. So, supply shortage has to be ruled out as the reason for the surge in PC AIB pricing. That leaves miners, speculators, and gougers. This is no joke.”
He continues: “Who is benefitting? The channel organizations like Amazon, NewEgg, BestBuy, and others, while the speculators sell AIBs on eBay at prices 2x to 3x more than the manufacturer’s suggested retail price (MSRP).”
The article concludes optimistically though, with the assertion that “there’s a good probability that these inflated prices will come crashing down as gamers just say no”, leaving the price gougers with graphics cards they can’t sell (or rather they’ll be forced to sell them at a loss – what a shame
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