Current-gen GPU prices are expected to drop further over the next month
2022's cryptocurrency crash is continuing to force GPU prices down
Published: 18th August 2022 | Source: My Drivers |
GPU prices are expected to lower once again at the end of this month
The plummeting value of cryptocurrencies and rising cost of electricity have made cryptocurrency mining unprofitable in many regions of the world. Since many cryptocurrencies are mined on graphics cards, and cryptocurrency mining is no longer a viable get rich quick scheme, demand for graphics cards has fallen off a cliff.
Currently, graphics cards are overstocked and aren't selling well. Consumers know that next-generation GPU launches are on the horizon, and consumers are now unwilling to pay high prices for graphics cards that may soon be replaced by newer models. Simply put, graphics cards were built in huge quantities to cater to the crypto mining market at high prices, and now these graphics cards don't have buyers.
GPU pricing will get lower
In recent months we have already seen graphics card prices fall dramatically, with most graphics cards becoming available at prices below their MSRPs. Nvidia's RTX 3090 was once available for £1399 or over, and now it is available for under £1000. Graphics card prices are expected to lower even further, as both AMD and Nvidia need to clear their stock ahead of their next-generation product launches.
Nvidia is expected to cut their prices most aggressively, as they RTX 30 series of GPUs appear to be much more overstocked than AMD's RX 6000 series products. These price cuts are unlikely to be officially announced by either company, but if they are, they will likely be marketed as limited time promotions or deals.
With many cryptocurrency miners selling their used graphics cards en masse, Nvidia and AMD are facing heavy competition from the used graphics card market for sales. When new GPU prices lower, the price of used graphics cards also drops. Given the sheer quantity of used graphics cards on websites like eBay, there is a huge pressure on graphics card manufacturers to lower prices to encourage sales for new products. To put things another way, graphics aren't just overstocked at retailers, they are also overstocked on used product websites.