That doesn't mean that there is no market failure. Monopolies and oligopolies often do still provide improvements, but it is no longer dictated by what is possible, but what they consider optimal to maximize their profits.
As @GodisanAtheist notes, they already paid a settlement over it.The problem with this claim is that 10 years ago there were still only two major players in the GPU space. Hell, that's been the case for almost two decades. Why did it take so long for them to decide to be greedy?
Yes, Retailers have sales.
I think the 4070 is doing quite well.
It's already showing up in the Steam Survey. Which is pretty fast for a new card.
For the Steam Survey Denialist that prefer Mindfactory Sales, it looks like the 4070 has been their best Selling GPU every single week since it's release...
LoL, are you trolling? Almost no GPU is selling well now, except maybe the 4090 or RDNA2 leftovers. Nobody is buying 4060 Ti's, and the 4070 didn't seem to do much better. And why the smiley face, as if you are happy that a renamed overpriced card was selling is a good thing?
The 4070 Ti seems to be selling OK. But 4070 or 4060 Ti, no.
As @GodisanAtheist notes, they already paid a settlement over it.
But the answer why they are now increasing prices so much is that both benefit more from it than in the past. AMD benefits from shrinking the PC gamer market and pushing people towards consoles, which mostly use AMD. They are earning way more money from server CPUs anyway, so they don't have to do well with GPUs.
Nvidia had the mining boom and now the AI boom, which means that they don't really need gamers. In fact, giving us fairly cheap cards with a decent amount of VRAM can harm their huge AI profits, as people might then buy cheap GPUs for AI work.
You need to keep in mind that monopolists/oligopolists only have the power to set prices, but that doesn't mean that have the power to make you buy their product. The laws of supply and demand still apply (where the higher the price, the more buyers leave the market). They just care less than ever about having low sales.
That argument made sense during the mining boom when any GPU was sought by miners and production simply couldn't keep up, but now we see that neither AMD or Intel have solid AI offerings.Your arguments really only serves my point. It's not a market failure when the companies have other customers who are willing to pay more for their products. That's the reason they don't have to care what the PC gaming market wants. The PC gaming market wants a 16 GB 4060 Ti or a $600 7900 XT. Too bad other people will pay more than triple that for the same amount of silicon.
Retailers wouldn't be having sales on a 2 months old product if it was selling well.Yes, Retailers have sales.
I think the 4070 is doing quite well.
It's already showing up in the Steam Survey. Which is pretty fast for a new card.
For the Steam Survey Denialist that prefer Mindfactory Sales, it looks like the 4070 has been their best Selling GPU every single week since it's release...
Retailers wouldn't be having sales on a 2 months old product if it was selling well.
That argument made sense during the mining boom when any GPU was sought by miners and production simply couldn't keep up, but now we see that neither AMD or Intel have solid AI offerings.
It is market failure when one company finds another buyer for their cards and the other competitors can't or won't compensate for this to a large extent by creating a competitive product.
Unless data centers suddenly start investing less in CPU's and more in AI. Then AMD's cunning plan to replace Intel in servers suddenly goes wrong.It doesn't matter that they don't have a wildly popular AI GPU when they have a widely popular server platform and who knows what the new MI300 will end up doing. Certainly can't do them any worse.
Regardless, all of those products compete for 5nm wafers from TSMC, just like yogurt and cheese both need milk to manufacture.
I don't like seeing good products being undervalued. The 4070 should have been $799 and I'm happy to see it selling so well at $599.
Based on what? I'd bet the 4070 is the best seller of the RTX 4000 lineup.
4070 has been the best selling card at Mindfactory for about 8 straight weeks. And it took less than 2 months to reach enough cumulative sales to register on Steam Survey. Here is the most recent (week 22) MF numbers:
View attachment 81697
Unless data centers suddenly start investing less in CPU's and more in AI. Then AMD's cunning plan to replace Intel in servers suddenly goes wrong.
Except that demand for other products is way down and apparently TSMC is underutilized on all nodes, including 5N: https://technode.com/2023/06/12/tsm...utilization-for-5nm-and-7nm-processes-report/
So your entire narrative seems to be based on false assumptions.
Did you forget to add that was sarcasam or are you serious?
That's not necessarily true, because companies tend to accept temporary underutilization and such, rather than have their prices fluctuate wildly.If N5 is underutilized then TSMC lowers prices and products have potential cost reductions that can be passed along.
Yes, but the report says that they are still underutilized. You need to keep in mind that Nvidia can be constrained on the assembly of the entire card or such, rather than being contrained by lack of chips.I also just did a quick search on TSMC revenue and they report being up almost 20% monthly from April to May. Even the report you've linked says companies are buying more wafers, which is what would be expected. Obviously there can be constraints in other places, but again I do t see any indication of market failure.
This whole instant AI rollout is funny. Funny money chasing funny fantasies. What about the entire network of people and additional hardware needed to house and use these AI units. I predict that Nvidia can't use (outside of this initial order frenzy) all of TSMC slack volumes as the limiting factors are not chip numbers in the medium term, but everything else which needs time to actualize. We don't live in a virtual world yet, I hope.That's not necessarily true, because companies tend to accept temporary underutilization and such, rather than have their prices fluctuate wildly.
Yes, but the report says that they are still underutilized. You need to keep in mind that Nvidia can be constrained on the assembly of the entire card or such, rather than being contrained by lack of chips.
Nvidia is likely constrained by packaging and/or substrate supply. AMD couldn't ramp up their server products due to a lack of packaging and substrate, so they did a joint partnership with some company in China to expand packaging assembly lines, but I suspect it'd be the same issue for Nvidia, who ships at way higher volumes.That's not necessarily true, because companies tend to accept temporary underutilization and such, rather than have their prices fluctuate wildly.
Yes, but the report says that they are still underutilized. You need to keep in mind that Nvidia can be constrained on the assembly of the entire card or such, rather than being contrained by lack of chips.