Is The GPU Market Dead?
PUBLISHED
- June 26, 2023
- 1:13 am
PUBLISHED
- June 26, 2023
- 1:13 am
As we take stock of recent developments in the graphics card market, we see a surprising trend. Nvidia and AMD, both behemoths of the tech world, have released new products, none of which have garnered the consumer interest one might expect. Nvidia’s GeForce RTX 4060 Ti 8GB and AMD’s Radeon RX 7600 failed to captivate consumers, marking a startling lack of enthusiasm for new GPU releases.
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Unfulfilled Expectations
The Nvidia RTX 4060 Ti 8GB was particularly disappointing. GPUs of its kind, with mid-range performance and a price tag around $400, have historically been cash cows for Nvidia. Yet, a wave of negative reviews led to a lack of interest and dismal sales for this product. The RTX 4060 Ti 8GB is now struggling to outsell even the pricey RTX 4080, an older product in the market. This is a far cry from the norm, where a decently priced card would typically outsell a more expensive counterpart.
A Market in Flux
Vendors anticipated these struggles at Computex, expressing their doubts about the sales prospects of the RTX 4060 Ti 8GB, especially those priced above the $400 MSRP. This has had a ripple effect in the market, with vendors discounting new models below MSRP at record speeds. For instance, MSI has already dropped the price of the Ventus model of the 4060 Ti 8GB to $379 at Newegg, $20 below MSRP, less than a month after launch. This quick price drop is a red flag that could hint at even lower prices in the future.
AMD's Lackluster Performance
AMD has not been faring much better, with the Radeon RX 7600 showing lackluster sales figures. Despite having some successful models like the RX 6700 XT and RX 6600, AMD’s new RX 7600, priced at around $270, hasn’t captured the interest of consumers. The RX 7600, just like the RTX 4060 Ti, has also seen its price drop below the MSRP less than a month after its launch.
A Silver Lining?
With both of these new GPUs failing to meet expectations, it begs the question – are there any current generation GPUs that are genuinely exciting to consumers? The GeForce RTX 4070 might be the answer. Despite a lukewarm launch, the RTX 4070 has been gaining traction more recently, likely due to consumers having a clearer understanding of what lower-tier models have to offer.
The Waiting Game
For a buyer with about $500 to spend, the RTX 4070, initially priced at $600, would have been a hard sell. As a result, most consumers are adopting a wait-and-see approach, especially concerning Nvidia’s plans for the $400 and $500 price range, where traditionally, cards have presented better value.
Despite these setbacks, the GPU market continues to be a dynamic space. The current state of affairs could very well be a temporary lull before a storm of innovation and market excitement. Only time will tell.
