GTX 580 being phased out.

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formulav8

Diamond Member
Sep 18, 2000
7,004
522
126
Yeah tell that to the people who didn't get their mir. That is definitely one company I will not buy when a rebate is involved. People have had to many bad experiences for me to deal with them.
 

exdeath

Lifer
Jan 29, 2004
13,679
10
81
Bad time to buy a 580 anyway. They have been out for what 10 years? Sure feels like it.
 

exdeath

Lifer
Jan 29, 2004
13,679
10
81
Nvidia have had loads of time AND have loads of money to get the 580 successor out the door.

Why bother when there is no competition and you can just sit around and milk your 10 year old, now pennies on the dollar, product forever?
 

SHAQ

Senior member
Aug 5, 2002
738
0
76
Except when they mispredict future products and end up with nothing or a crappy GPU for a few months while they wait, and wait and wait some mroe. Gotta suck if you are a BF3 player and that happens to you.

Additionally, smart isn't exactly the word I would use. I'd say it is more ambition than anything else.

You would be surprised. I sold 2 470's for $375 last month. I used them for over a year. I believe they were $350-$375 each when they came out. Not everyone is quite so obsessed with video card releases as people here so it is possible to sell your old cards a couple of days after the new ones are out for a very good price. I sold my 8800 GTS to New Zealand and it took so long to get there that the buyer wanted to back out and get the new 8800GT. lol

It's easier to sell on Ebay than your local for sale/trade forum even with the 10% in fees. So I plan on picking up a couple of 680's on release day and ebay my 580's shortly after. And I also use buy it now so bidders don't have 7 days to read the video card news and back out. Look at the cards prices for a couple of days before you list to get a good price that will sell within a few hours. I always keep the boxes/manuals as they are worth 10% of the selling price. And of course EVGA has the best resale values as well. Take pictures too. Who doesn't want to know what they are actually buying?

I am okay with losing 30% of the value of these 580's after only using them for a few months. Some people focus on the money they are losing. I'd rather focus on the new hardware I'm getting. However, if they are out of stock by the time the 680 drops I will get almost all of my money back as I did with the 295 I sold. That's the only time video cards are almost an "investment", but you never know that in advance. lol
 

Aso

Senior member
Aug 16, 2000
381
0
76
Regarding the GTX580 being discontinued, that seems strange. If we look at Newegg, it could very well be the case that holiday demand has resulted in half of those cards selling out. I remember there were shortages of HD6970 / 6950 cards on Newegg too. That didn't mean those cards were being discontinued, just that demand had outstripped supply during that short period of time.

The thing I find odd on Newegg is it lists the GTX 580s as "Sold Out" and not as "Price XXX.xx" with the Autonotify when in stock button.
 

digitaldurandal

Golden Member
Dec 3, 2009
1,828
0
76
Why bother when there is no competition and you can just sit around and milk your 10 year old, now pennies on the dollar, product forever?

I believe that blatant trolling is not appropriate for threads in this section.

Firstly the cards are not even very old at all. They are actually less than a year old. What exactly are you talking about?
 

exdeath

Lifer
Jan 29, 2004
13,679
10
81
I believe that blatant trolling is not appropriate for threads in this section.

Firstly the cards are not even very old at all. They are actually less than a year old. What exactly are you talking about?

Exaggeration sure, but fact is this generation of GPU has been out forever. What happened to the 6 month product cycles? They pretty much slowed down since ATI was absorbed.
 

3DVagabond

Lifer
Aug 10, 2009
11,951
204
106
It's a little silly to extrapolate based on one company's actions. If multiple companies aren't pushing more product out the door, something's definitely up. Could be that Zotac doesn't want to commit to another order when the next generation is right around the corner. They'd probably end up with a lot of extra stock that would need to be discounted.

They discontinued the 200 series when ATI released Cypress rather than cutting their prices to try and compete. Maybe the same thing is happening now?

Yeah tell that to the people who didn't get their mir. That is definitely one company I will not buy when a rebate is involved. People have had to many bad experiences for me to deal with them.

Rebates typically are handled by 3rd party contractors. Most often when a customer doesn't get their rebate it's because they didn't cross their T's and dot their I's. Of course, most won't admit it. There's nothing you can do about it except not buy products with rebates. Enough people do it, and they'll change their strategy. Welcome to the 21st century. :\
 

Grooveriding

Diamond Member
Dec 25, 2008
9,147
1,329
126
Yeah tell that to the people who didn't get their mir. That is definitely one company I will not buy when a rebate is involved. People have had to many bad experiences for me to deal with them.

Whoever handles the rebates for Zotac is not very good. I had two $30 rebates for my 480s and I submitted everything, about four months later I had got nothing and contacted Zotac rather than the rebate people.

They asked me to photograph the boxes and cards and give them a copy of my receipt. A few weeks later they sent me two cheques for $30. It was a pain, but I got them.

I've seen some crazy Zotac rebates as well, $50 and even $100 on their 480s & 580s. The $100 rebate I saw posted as a deal here in hot deals on a 580. I wouldn't chance such a big rebate with Zotac after the experience I had getting my rebates back.
 

lamedude

Golden Member
Jan 14, 2011
1,214
19
81
They discontinued the 200 series when ATI released Cypress rather than cutting their prices to try and compete. Maybe the same thing is happening now?
That's my guess. 7950 probably going offer >=580 peformance at $350 and a 580 at <$350 isn't profitable or profitable enough for NV.
 

tweakboy

Diamond Member
Jan 3, 2010
9,517
2
81
www.hammiestudios.com
How educated are you to say "piss off" and call me a name.

Zotac is a lower budget company. Sorry for being harsh.

Hey if it works for you then , God bless man, dont hate!!!
 

imaheadcase

Diamond Member
May 9, 2005
3,850
7
76
How educated are you to say "piss off" and call me a name.

Zotac is a lower budget company. Sorry for being harsh.

Hey if it works for you then , God bless man, dont hate!!!

You do realize that Zotac, EVGA, etc pool from the SAME people...but of course you do, you know everything.

Its not a "cheap" company by any means. I swear tweakboy with every post you seem to just come inside from falling off you're bike.
 
Mar 10, 2006
11,715
2,012
126
How educated are you to say "piss off" and call me a name.

Zotac is a lower budget company. Sorry for being harsh.

Hey if it works for you then , God bless man, dont hate!!!

Sorry, I was a little grumpy, but dude, saying they're a "retarded" company and "that's what you get for buying from them" isn't going to put people on your side.

Nevertheless, I was harsh and for that I apologize.
 

RussianSensation

Elite Member
Sep 5, 2003
19,458
765
126
That's my guess. 7950 probably going offer >=580 peformance at $350 and a 580 at <$350 isn't profitable or profitable enough for NV.

That's impossible. GTX570 and GTX560 Ti 448 Core are the exact same chip (GF110) as GTX580, aside from reduced specs. Even if you subtract lower PCB costs due to less complex memory bandwidth (less pins), that's still a marginal cost difference. All NV does it take lower yielding GTX580s and resells them as 570s and 560 Ti 448s for ~ $290-330. So if the GTX580 chip is profitable at $290, it for sure would be at $350. In fact, NV sells 2 of those chips as GTX590 for $750, which means we know 100&#37; that selling a GF110 chip is already profitable at $375 price level.

When you produce GF110 chips in a wafer, the cost per chip is exactly the same, whether it is a full-fledged GTX580, a GTX570 or GTX560 Ti 448 Core. But instead of throwing out the 570 and 560 Ti 448 chips, NV sells those as lower priced SKUs.

Considering NV's profit margins were 52.2% in the last quarter, it's very reasonable to assume that GTX580 at least has that profit margin since it's one of their highest priced SKUs. The $499 MSRP includes all the supply-chain related mark-ups too (retailers get a cut, etc.). So at minimum NV can sell the card for $240 or so and still break-even.

I bet NV could easily sell GTX580 for $250 and still make $. How do I know? They sell the exact same GF110 chip as GTX560 Ti 448 core for $289. You think they are only making $40 on each of those?

Also, you can't use the argument that because NV isn't selling GTX580s below $350, that they are probably not profitable. Why would they lower the price when people are buying those GTX580 cards for $450-500?
 
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digitaldurandal

Golden Member
Dec 3, 2009
1,828
0
76
That's impossible. GTX570 and GTX560 Ti 448 Core are the exact same chip (GF110) as GTX580, aside from reduced specs. Even if you subtract lower PCB costs due to less complex memory bandwidth (less pins), that's still a marginal cost difference. All NV does it take lower yielding GTX580s and resells them as 570s and 560 Ti 448s for ~ $290-330. So if the GTX580 chip is profitable at $290, it for sure would be at $350. In fact, NV sells 2 of those chips as GTX590 for $750, which means we know 100% that selling a GF110 chip is already profitable at $375 price level.

When you produce GF110 chips in a wafer, the cost per chip is exactly the same, whether it is a full-fledged GTX580, a GTX570 or GTX560 Ti 448 Core. But instead of throwing out the 570 and 560 Ti 448 chips, NV sells those as lower priced SKUs.

Considering NV's profit margins were 52.2% in the last quarter, it's very reasonable to assume that GTX580 at least has that profit margin since it's one of their highest priced SKUs. The $499 MSRP includes all the supply-chain related mark-ups too (retailers get a cut, etc.). So at minimum NV can sell the card for $240 or so and still break-even.

I bet NV could easily sell GTX580 for $250 and still make $. How do I know? They sell the exact same GF110 chip as GTX560 Ti 448 core for $289. You think they are only making $40 on each of those?

Also, you can't use the argument that because NV isn't selling GTX580s below $350, that they are probably not profitable. Why would they lower the price when people are buying those GTX580 cards for $450-500?

I am unsure why you have a hard time believing they make a profit of around 40$ for each of a mainstream mid market product TBH. It is about volume.
 

byteman99

Member
Jan 10, 2009
118
1
76
They must be close to releasing their 600 series. Hopefully this means we can see the 580s in the $200-$250 range in some crazy sale within the next couple of months.
 

RussianSensation

Elite Member
Sep 5, 2003
19,458
765
126
I am unsure why you have a hard time believing they make a profit of around 40$ for each of a mainstream mid market product TBH. It is about volume.

8 Reasons:

1) Nature of the market segment: High-end discrete GPUs are historically high-margin, low volume products. Anything that's above $199 is high-end for NVidia since it comprises just 14&#37; of overall market share.

2) Financials: NV's profit margins are > 50%. We know that some products are much greater than 50% (such as their Quadro and Tesla business), while other products are less than 50% (such as sub-$100 GPUs). Since GTX560/570/580 cards are all > $199, it's far more logical to reason they all have > 50% profit margins, esp. the 580 since it's at the very high-end of the consumer segment.

3) Ability to cut prices by $100-150 and still make $. NV cut the price of GTX280 from $649 to $499 and GTX260 from $399 to $349 or so and later to $299 when HD4870 launched. This shows that high-end desktop GPUs have insane mark-ups built into them.

4) Manufacturing costs decrease over time; as well as component prices (VRAM) drop. As 40nm process matures and yields improve, the cost to product a working GF110 chip decreases. That means, if NV was only making $40 at launch on GTX580 (your assumption), then today they have to make way more than $40.

5) Product SKU pricing structure. GTX560 Ti 448 ($290) / GTX570 ($300) / GTX580 ($450-500) / GTX590 ($750) are all the same chip! So it's impossible that NV only makes $40 per each of those cards. The profits would have to be different since there is such a huge discrepancy in their price, while the cost per each GF110 chip is the same. We know VRAM is not expensive since AMD sells HD6950 2GB for only $239. So we can't say that because GTX580 has 1.5GB of VRAM vs. 1.28 for the 560 448 core and 570, that the cost is a lot more. Also, the more potent voltage regulation might cost $10 more on the 580, the wider 384-bit memory over 320bit adds to the cost, but prob not more than $30-40. That means from $290-300 GTX570 to $450-500 on the GTX580 there is a TON of profit baked in.

6) A colleague used to work for ATI for years. He could buy every single ATI GPU for 50% of its MSRP (even the high end $549 cards). Do you think ATI would sell its graphics cards for 50% less than MSRP and actually lose $? He was allowed to buy at minimum 10 videocards per year for himself/friends....and the same was true for a lot of ATI employees.

7) Historical pricing trends. NV eventually cuts the price on its ageing line-up. If NV cuts the price of GTX580 from $500 to say $350 in the next 2 months, what then? With your theory, they would be losing $110 per card. We have seen GTX470/480 cards drop in price in retail after GTX570/580 came out. That doesn't mean NV was losing $ by selling the 470 and 480 at the time.

8) GTX590: is 2x GTX580s for $750. In the most simplest terms, that means half of the GTX590 costs $375. And yet, NV sells 1 GTX580 for $450-500. That GTX580 is a cash cow darling of the line-up. It would be the same in the high-end audiophile world. Sennheiser HD800 headphones retail for $1499, while you can find HD650s for $350-500. That doesn't mean the cost to make HD800 headphones is 2x more than the lesser model. Consumers who want the best are willing to pay huge premiums for just a 10-20% improvement, which results in extremely high profit margins for the top parts.

There is no way NV only makes $40 off a single GTX580 it sells. It sells the GTX580 for $500 because it's the single fastest discrete GPU. It's about supply vs. demand, and little to do with how much the GTX580 costs to manufacture.

560 Ti 448's are binned 580s. It's a way to decrease the "cost" on the 580.

That's one way to look at it. However, you can't decrease the cost of GTX580 by selling a GF110 chip and make no $ on it, correct? So if they are selling a 448 core GF110 chip for $289, they are still making $ on the 560, correct? Now if GTX580 sells for $450-500, you are telling me the manufacturing costs of GTX580 are $150+ more than it costs to produce the GTX560 448 core card? You guys must be reading too much SemiAccurate to believe this. The incremental costs that go into a more complex PCB and slightly larger VRAM for the 580 are small, and yet the card has a $200+ price hike over the GTX560 448 Core.

The reason the GTX580 sells for $500 and not for $350 like the GTX570 is NOT because GTX570 costs $150 less to manufacture. It's because consumers are willing to pay those prices. HD6970 doesn't cost more for AMD to manufacture than an HD6950. AMD just pockets way more $ from the 6970 because some people are perfectly fine with paying $100 more for 14% more performance.
 
Last edited:

WhoBeDaPlaya

Diamond Member
Sep 15, 2000
7,414
402
126
Exaggeration sure, but fact is this generation of GPU has been out forever. What happened to the 6 month product cycles? They pretty much slowed down since ATI was absorbed.
This, and the jumps aren't as impressive now. I blame consolitis.
On the flip side, it's great for my wallet - figure my 6950 2GB @ 6970 will last me for awhile yet.
Heck, even the 6950 1GB in the office unit will last awhile and it was worth the ~$130 I got it for

Bonus for 5xxx and 6xxx users - a little side income from BTC mining. Not much nowadays, but hey, if the card is
just sitting there while you're not gaming...
 

digitaldurandal

Golden Member
Dec 3, 2009
1,828
0
76
8 Reasons:

1) Nature of the market segment: High-end discrete GPUs are historically high-margin, low volume products. Anything that's above $199 is high-end for NVidia since it comprises just 14% of overall market share.

2) Financials: NV's profit margins are > 50%. We know that some products are much greater than 50% (such as their Quadro and Tesla business), while other products are less than 50% (such as sub-$100 GPUs). Since GTX560/570/580 cards are all > $199, it's far more logical to reason they all have > 50% profit margins, esp. the 580 since it's at the very high-end of the consumer segment.

3) Ability to cut prices by $100-150 and still make $. NV cut the price of GTX280 from $649 to $499 and GTX260 from $399 to $349 or so and later to $299 when HD4870 launched. This shows that high-end desktop GPUs have insane mark-ups built into them.

4) Manufacturing costs decrease over time; as well as component prices (VRAM) drop. As 40nm process matures and yields improve, the cost to product a working GF110 chip decreases. That means, if NV was only making $40 at launch on GTX580 (your assumption), then today they have to make way more than $40.

5) Product SKU pricing structure. GTX560 Ti 448 ($290) / GTX570 ($300) / GTX580 ($450-500) / GTX590 ($750) are all the same chip! So it's impossible that NV only makes $40 per each of those cards. The profits would have to be different since there is such a huge discrepancy in their price, while the cost per each GF110 chip is the same. We know VRAM is not expensive since AMD sells HD6950 2GB for only $239. So we can't say that because GTX580 has 1.5GB of VRAM vs. 1.28 for the 560 448 core and 570, that the cost is a lot more. Also, the more potent voltage regulation might cost $10 more on the 580, the wider 384-bit memory over 320bit adds to the cost, but prob not more than $30-40. That means from $290-300 GTX570 to $450-500 on the GTX580 there is a TON of profit baked in.

6) A colleague used to work for ATI for years. He could buy every single ATI GPU for 50% of its MSRP (even the high end $549 cards). Do you think ATI would sell its graphics cards for 50% less than MSRP and actually lose $? He was allowed to buy at minimum 10 videocards per year for himself/friends....and the same was true for a lot of ATI employees.

7) Historical pricing trends. NV eventually cuts the price on its ageing line-up. If NV cuts the price of GTX580 from $500 to say $350 in the next 2 months, what then? With your theory, they would be losing $110 per card. We have seen GTX470/480 cards drop in price in retail after GTX570/580 came out. That doesn't mean NV was losing $ by selling the 470 and 480 at the time.

8) GTX590: is 2x GTX580s for $750. In the most simplest terms, that means half of the GTX590 costs $375. And yet, NV sells 1 GTX580 for $450-500. That GTX580 is a cash cow darling of the line-up. It would be the same in the high-end audiophile world. Sennheiser HD800 headphones retail for $1499, while you can find HD650s for $350-500. That doesn't mean the cost to make HD800 headphones is 2x more than the lesser model. Consumers who want the best are willing to pay huge premiums for just a 10-20% improvement, which results in extremely high profit margins for the top parts.

There is no way NV only makes $40 off a single GTX580 it sells. It sells the GTX580 for $500 because it's the single fastest discrete GPU. It's about supply vs. demand, and little to do with how much the GTX580 costs to manufacture.



That's one way to look at it. However, you can't decrease the cost of GTX580 by selling a GF110 chip and make no $ on it, correct? So if they are selling a 448 core GF110 chip for $289, they are still making $ on the 560, correct? Now if GTX580 sells for $450-500, you are telling me the manufacturing costs of GTX580 are $150+ more than it costs to produce the GTX560 448 core card? You guys must be reading too much SemiAccurate to believe this. The incremental costs that go into a more complex PCB and slightly larger VRAM for the 580 are small, and yet the card has a $200+ price hike over the GTX560 448 Core.

The reason the GTX580 sells for $500 and not for $350 like the GTX570 is NOT because GTX570 costs $150 less to manufacture. It's because consumers are willing to pay those prices. HD6970 doesn't cost more for AMD to manufacture than an HD6950. AMD just pockets way more $ from the 6970 because some people are perfectly fine with paying $100 more for 14% more performance.

You have a very well thought out post however, you seem to have missed something. NV is selling the chips to partners. Their only cost is RND and the actual wafer correct? RAM etc is a partner cost. So if each chip costs them 25$ to make and they sell the chip for 65$ to a board partner who then adds a cooler, motherboard etc, heck even the reference board isnt that expensive but my biggest point is that there is a middle man here that you are not taking into account at all in your estimates. NV makes money from EVGA and other board partners and they make money from us.
 
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