Credit crunch and global economic slowdown hits manufacturers' hard

"Motherboard and graphics card makers are feeling the pinch"

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Unless you've been living under a rock during the past few months, you will be well aware that the world is experiencing a global economic slowdown. As can be expected in the current economic situation, hardware manufacturers' are feeling the pinch too, and they are taking necessary steps to offset serious overstock shortages and cash flow problems.
Several motherboard and graphics card makers saw serious overstock problems in the second half this year and started to cut prices several months ago in order to clear their inventory due to falling demand. In addition to clearing inventory, makers have also cutback production capacity and reduced component purchasing, and have also started laying off personnel or have suspended hiring to prevent cash shortages. 

First-tier makers Asustek Computer, Elitegroup Computer Systems (ECS), Gigabyte Technology and Micro-Star International (MSI) have already cut capacity and started inventory control measures. Some second-tier makers are reportedly considering merging with other makers if performance in the next 3-6 months does not pick up. Some have also stopped production and are currently selling off inventory from the second and third quarters with no concrete schedule for restocking.  

Jerry Shen, president of Asustek, pointed out that the PC industry is facing pressure and not many players can maintain high levels of growth. Asustek is putting more attention on inventory and purchasing volumes and will try to find some ways to save costs. However, the company currently does not have plans to reduce production of notebooks and netbooks, Shen added.
Unfortunately, I feel this is just the beginning of the hard road ahead for manufacturers, but what does it all mean for us as consumers?
Feel free to discuss this article in our forum
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Most Recent Comments

06-11-2008, 15:11:55

In association with XFX, today we will be taking a look at Far Cry 2, early contender for game of the year which XFX are now bundling with select products from their 9 series of graphics cards.


Read the full review here.

06-11-2008, 17:01:35

Great review mate. Some good points in there

Looks fun, must but it :D

06-11-2008, 20:03:30

Awesome review mate, really felt like it was an honest opinion, not just "this game is incredible, graphics amazing yada yada yada..."

Good to see reviews focussing on gameplay, that's where the progress needs to be made atm imo there hasn't been a shooter as innovative as HL2 since that came out, (the variety of challenges, gravity gun and physics puzzles etc).

Having said that I played the mirror's edge demo on my mate's PS3 the other day and was absolutely gobsmacked by how close they have come to making it feel like true first person. Can't wait for that to hit PCs, damn release dates after console versions. :mad:

Although it's not FPS, so doesn't strictly fall into the same category, but Mafia II should be a good contender for GOTY 2009, 8 years since the original and by the looks of it it's shaping up to be a classic, and PC will once again be the full-featured version [top marks 2K Czech!] :D

07-11-2008, 04:07:05

Cheers for the kind comments.

I tried to write the review as I would like to read it. Like you say, too many times there are reviews which 'big up' a product, falling into all the hype but lose the objectiveness of the product.

07-11-2008, 04:13:15

Yep great review dude - I'm actually off to pick up Far Cry 2 @ lunchtime :)

07-11-2008, 08:34:41

If ya fancy some 1 v 1 sniper action gimme a shout:D

10-11-2008, 04:44:33

Nice review mate, well done and good forcus on the gameplay. I might pick this up somewhen :D

10-11-2008, 06:07:08

I must confess I have been playing it alot over the weekend and it is growing on me more and more.

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