1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

News JPR report points to record-breaking gaming PC market growth

Discussion in 'Article Discussion' started by Gareth Halfacree, 23 Jan 2017.

  1. Gareth Halfacree

    Gareth Halfacree WIIGII! Staff Administrator Super Moderator Moderator

    Joined:
    4 Dec 2007
    Posts:
    12,824
    Likes Received:
    2,037
  2. Corky42

    Corky42 Where's walle?

    Joined:
    30 Oct 2012
    Posts:
    9,399
    Likes Received:
    334
    I know Brexit has hit the pound but i didn't know things were that bad. ;)
    Or am i confusing my America billions and millions with my English billions and millions.
     
  3. Gareth Halfacree

    Gareth Halfacree WIIGII! Staff Administrator Super Moderator Moderator

    Joined:
    4 Dec 2007
    Posts:
    12,824
    Likes Received:
    2,037
    Huh? <searches through article> Ah - I see it: one instance of 'million' when I meant 'billion.' Fixed, ta!

    (The 'American billions' thing, sadly, is a lost cause: originally, what the Yanks call a 'billion' we called a 'milliard,' with a 'billion' being what the Yanks call a 'trillion.' These days, though, we've standardised on a thousand million being a billion.)
     
  4. B1GBUD

    B1GBUD ¯\_(ツ)_/¯ Accidentally Funny

    Joined:
    29 May 2008
    Posts:
    3,319
    Likes Received:
    415
    Thanks largely to NVidia price gouging :p
     
  5. Mr_Mistoffelees

    Mr_Mistoffelees The Lunatic on the Grass.

    Joined:
    26 Aug 2014
    Posts:
    1,975
    Likes Received:
    435
    Nobody is forced to buy Nvidia and it's not Nvidia's fault that AMD has failed to compete as well as they might. Any manufacturing company, in Nvidia's position, would price their goods to take advantage of the lack of competition.
     
  6. B1GBUD

    B1GBUD ¯\_(ツ)_/¯ Accidentally Funny

    Joined:
    29 May 2008
    Posts:
    3,319
    Likes Received:
    415
    Absolutely, and if it was the other way around then AMD would be equally as guilty.... doesn't make it right though does it?
     
  7. MyDude

    MyDude New Member

    Joined:
    14 Jan 2017
    Posts:
    11
    Likes Received:
    0
    Doesn't make it wrong either. That's capitalism. If you don't like their business practice, the only thing you can do is not buy their product and try to convince others to do the same. Other than that, we rely on competition in the industry.
     
  8. edzieba

    edzieba Virtual Realist

    Joined:
    14 Jan 2009
    Posts:
    3,352
    Likes Received:
    324
    Why not? Nvidia are selling a product, at a price everyone is willing to pay. If they thought they could sell more GPUs by lowering their margins they would be doing that.
     
  9. B1GBUD

    B1GBUD ¯\_(ツ)_/¯ Accidentally Funny

    Joined:
    29 May 2008
    Posts:
    3,319
    Likes Received:
    415
    So you're happy to pay £700 for a GPU when the sum of its parts are worth what exactly?
     
    Last edited: 23 Jan 2017
  10. Locknload

    Locknload Jolly Good Egg

    Joined:
    28 Jun 2009
    Posts:
    222
    Likes Received:
    8
    Not true at all?
    It is not units that pushes sales, it is profit per unit.

    10 Gpu sold at £500.00 is £5000.00
    20 GPu sold at £250.00 is still £5000.00

    I have sold more units, but in this instance, my profit is the same?

    Actually, In real terms you have made a significant loss because you have costs of manufacturing and production of 20 units and not 10.

    10 units sold @ £500.00 ea = £5000.00, lets say each unit costs £50.00 to produce. That is a profit of £4500.00 in total for 10 GPU.

    20 units sold @ £250.00 ea = £5000.00, lets assume each unit costs £50.00 to produce. That is a profit of £4000.00 in total for 20 GPU.

    Your statement of " if they thought they could sell more GPU by lowering margins, then they would do that" is complete tosh?
     
  11. dstarr3

    dstarr3 New Member

    Joined:
    11 Feb 2014
    Posts:
    75
    Likes Received:
    0
    The general rule is "Your product is worth exactly as much as people will pay for it." And that's all that nVidia is charging. Exactly what people are willing to pay.
     
  12. Anfield

    Anfield Well-Known Member

    Joined:
    15 Jan 2010
    Posts:
    5,232
    Likes Received:
    420
    Cost does not scale linearly with quantity though.

    If nvidia spends lets say 200 million in R&D to come up with a new gpu and they sell 5 million of them then they have to charge 40 on top of physical production costs to recoup the investment, but if they sell only 1 million of them then they have to charge 200 on top of physical production costs.

    Same thing applies to the money that goes towards continued driver development post release, marketing costs and so on.

    Plus the cost of physical production itself doesn't scale in a linear fashion either, while they obviously need double the raw materials there are things like tools that can be used again etc...
     
  13. Vault-Tec

    Vault-Tec Green Plastic Watering Can

    Joined:
    30 Aug 2015
    Posts:
    9,382
    Likes Received:
    1,009
    Obviously not, or I would have upgraded my TXM to a 1080 long ago. I'm not prepared to pay those prices, so that is at least one.
     
  14. Locknload

    Locknload Jolly Good Egg

    Joined:
    28 Jun 2009
    Posts:
    222
    Likes Received:
    8
    I was going to add the unit number variation and R&D value onto the costing, but it was a long, hard day, and The Interweb was hurting my head and ****.. Etc. :0
     

Share This Page