Speculation and Rumors: Nvidia Blackwell ...

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Yes. And ideal business maximising profits will push until it finds it, and then sit just below. You can't know for sure how much your consumers are willing to pay until you've tested them directly. What if you price at $2500 and yet your audience would have been willing to pay $3000? That's $500 of pure profit you'd miss out on every unit.

The market has sent a clear message to Nvidia in the past few years. There seems to be a hard limit at ~$1000 for a large segment of consumers. Then there are people willing to pay $2000-$3000 for the very best. So I think they’ll embrace that feedback.

$1000 for the 5080 and $2500 for the 5090.
 
I'm very marginally considering getting a 5080 as I doubt the 5070Ti will be a worthwhile upgrade from the 4070Ti.

But there's zero chance I'm paying more than £1k for it.

The other concern I have is that 16GB isn't enough for a £1k GPU which should be capable of ultra high end gaming. I see how horribly VRAM limited the 4070Ti is with 12GB in Indiana Jones and I'm thinking is an extra 4GB on a GPU that's likely twice as powerful (or more) in RT really sufficient? I don't think it is.
 
If it does it’ll likely suffer the same fate as the 4080. Maybe that’s exactly what Nvidia wants.
4080 has "suffered its fate" (as in was selling just fine in fact; the Internet buzz isn't really that indicative of how something is selling) because people viewed its value as low in comparison to a +33% more expensive 4090.
This "problem" can be solved in two ways, and considering what 5090 is I'd say that chances are that the value of 5080 will look a lot better this time in comparison to the higher positioned SKU...
 
Yes. And ideal business maximising profits will push until it finds it, and then sit just below. You can't know for sure how much your consumers are willing to pay until you've tested them directly. What if you price at $2500 and yet your audience would have been willing to pay $3000? That's $500 of pure profit you'd miss out on every unit.
Unfortunately, for that ideal process to work, humans would have to behave in a clearly rational manner. Instead, what is more likely to happen is that Nvidia will piss off a certain segment of buyers to the point that they’ll lose them permanently. There are just way to many examples in the past of Nvidia pricing themselves out of the market. It’ll almost certainly occur again. People are already upset with them for selling 50 cards as 60, attempting to sell 70 cards as 80. Looking at the leaked specs for the 5000 series, many cards have been moved down the stack.
I think all companies are trying to push their profit margins, really doubling down on the 'profit is king' mentality for business. They've seen other companies charge more and get away with it, so they are leaving money on the table if they don't follow suit.
Nvidia’s profits are certainly not my concern. There are not very many companies that operate in the manner Nvidia does. Their prices are already outrageous and with the way their pricing their products, it leaves very little room for price growth due to inflation.
When overall profitability starts to drop, they'll recalibrate their prices and hit the perfect sweet-spot.
Nvidia’s profit for gaming are mostly irrelevant. They make 25 billion + a quarter from data center and 2 billion+ for gaming. They’re playing an unnecessarily dangerous game and they’re going to find out.
 
4080 has "suffered its fate" (as in was selling just fine in fact; the Internet buzz isn't really that indicative of how something is selling) because people viewed its value as low in comparison to a +33% more expensive 4090.
This "problem" can be solved in two ways, and considering what 5090 is I'd say that chances are that the value of 5080 will look a lot better this time in comparison to the higher positioned SKU...
If 4080 was selling fine, Nvidia would not have dropped the price noticeably when releasing the super variant. The 4080 super had almost no improvement to the specs and no noticeable performance improvements. It was just a price cut.
 
If 4080 was selling fine, Nvidia would not have dropped the price noticeably when releasing the super variant.
By that "logic" everything below 4090 wasn't selling well while 4090 and 4060 and 4060Ti were - with the latter being universally panned for what they've brought to the market.

Truth is Nvidia dropped the price because AMD has been dropping the prices on their N31 parts, and to re-align to that they've re-shuffled the range between $500 and $1000. This has little to do with how well the 4080 has been selling at its launch price and everything to do with how the competitive landscape has changed in a year after that launch.
 
By that "logic" everything below 4090 wasn't selling well
Yes, I’m not sure how you’d arrive at that conclusion using that logic. The 4090 didn’t receive a price drop and actually saw prices increase across the board from third parties. This signifies that it perhaps may have been selling too well at that price. Since the rest of your post builds from this point, I won’t respond to it. I contest that your initial premise is false.
 
I'm very marginally considering getting a 5080 as I doubt the 5070Ti will be a worthwhile upgrade from the 4070Ti.

But there's zero chance I'm paying more than £1k for it.

The other concern I have is that 16GB isn't enough for a £1k GPU which should be capable of ultra high end gaming. I see how horribly VRAM limited the 4070Ti is with 12GB in Indiana Jones and I'm thinking is an extra 4GB on a GPU that's likely twice as powerful (or more) in RT really sufficient? I don't think it is.
If you wait you may see a 24GB 5080 Super or something like that. Or an 18GB 5070 Super is also likely IMO.
 
Unfortunately, for that ideal process to work, humans would have to behave in a clearly rational manner. Instead, what is more likely to happen is that Nvidia will piss off a certain segment of buyers to the point that they’ll lose them permanently. There are just way to many examples in the past of Nvidia pricing themselves out of the market. It’ll almost certainly occur again. People are already upset with them for selling 50 cards as 60, attempting to sell 70 cards as 80. Looking at the leaked specs for the 5000 series, many cards have been moved down the stack.

They lose so many customers that their main competitor now has only about 10% market share. I'd say whatever strategy they're doing it's going very well for them.
 
Unfortunately, for that ideal process to work, humans would have to behave in a clearly rational manner. Instead, what is more likely to happen is that Nvidia will piss off a certain segment of buyers to the point that they’ll lose them permanently. There are just way to many examples in the past of Nvidia pricing themselves out of the market.
That seems contrary. If there are loads of examples of nVidia offending consumers, why they now have a 90% market share?
Nvidia’s profits are certainly not my concern. There are not very many companies that operate in the manner Nvidia does.
I disagree. I see plenty of examples of products with vastly inflated prices these days because consumers have gotten used to paying more. Starbucks has increased in price above inflation to drive bigger profits. Whey protein used to be a cheap by-product of the cheese industry but now it's charged at top dollar with supplements tripling in cost in the UK over a few years.
Nvidia’s profit for gaming are mostly irrelevant. They make 25 billion + a quarter from data center and 2 billion+ for gaming. They’re playing an unnecessarily dangerous game and they’re going to find out.
Are you suggesting they price their GPUs around cost as a charity? Do the gamers a favour?

Note I'm not endorsing or justifying 'price gouging'. It's just the way the world is currently operated and I can't see nVidia, or anyone else, choosing to make less money. What would be the decision making process that'd lead them to choose lower profit margins than the biggest the market can tolerate?
 
4080 has "suffered its fate" (as in was selling just fine in fact; the Internet buzz isn't really that indicative of how something is selling) because people viewed its value as low in comparison to a +33% more expensive 4090.
This "problem" can be solved in two ways, and considering what 5090 is I'd say that chances are that the value of 5080 will look a lot better this time in comparison to the higher positioned SKU...

I’m not talking about internet buzz. Per Steam the 4090 significantly outsold the original $1200 4080. A $1200 product that sells much less than a $1600 product isn’t doing fine. Like you said it was perceived as poor value. This could have been Nvidia’s plan all along who knows.

Now Nvidia could replicate that with the 5080 but I don’t know how it makes them more money. It’s not like they’re going to convince potential 5080 buyers to consider an even more expensive 5090 if it does land near $2500.

One thing is obvious to me though. The market clearing price for the 5090 is much higher than $1600 if they hope to keep the thing in stock.
 
I’m not talking about internet buzz. Per Steam the 4090 significantly outsold the original $1200 4080. A $1200 product that sells much less than a $1600 product isn’t doing fine. Like you said it was perceived as poor value. This could have been Nvidia’s plan all along who knows.

Now Nvidia could replicate that with the 5080 but I don’t know how it makes them more money. It’s not like they’re going to convince potential 5080 buyers to consider an even more expensive 5090 if it does land near $2500.

One thing is obvious to me though. The market clearing price for the 5090 is much higher than $1600 if they hope to keep the thing in stock.
Once GPUs hit $2000 msrp on the top end base models, I'm done. Just completely ridiculous.
 
Yep I'm expecting this is the route I'll likely be forced to take. But by that point it might just be worth hanging in there for the 60 series so we'll see.
That's how I felt for literally years holding onto my 970. Eventually the 970 was so hopelessly obsolete I had to bite the bullet. I went AMD (MSI 6700XT) because the 4000 series pricing was offensive to me. Turns out my 6700XT was defective and after the second RMA I overnighted a 4070 while in a fugue state after the 3rd 6700XT crashed my computer. The value proposition of the 4070 was underwhelming to say the least but the card does actually work.
 
There were numerous options for upgrade from 970, starting with 1060, then 2060, then 3060.
All that stuff didn't impress me. The 1060 wasn't much of an upgrade but it did have more memory. But ultimately me being unimpressed led to a pretty poor gaming experience 😆 though you'd be surprised how well the 970 held up until the PS5/XSX came out. Hell the Xbox Series S isn't that much better than the 970.
 
That seems contrary. If there are loads of examples of nVidia offending consumers, why they now have a 90% market share?
Because there is no competition in the GPU space? They’re option is buy nvidia who offers the best performance and features or save $50 and buy an amd GPU which has worse features and worse performance. If you amortize the price difference over the length of ownership, the price difference is basically irrelevant? It’s not surprising that 90 percent would choose the better option?
I disagree. I see plenty of examples of products with vastly inflated prices these days because consumers have gotten used to paying more. Starbucks has increased in price above inflation to drive bigger profits. Whey protein used to be a cheap by-product of the cheese industry but now it's charged at top dollar with supplements tripling in cost in the UK over a few years.
Just as there are many examples of products with inflated prices, there are also lots of products with deflated prices since the Covid inflation spike. I think we should stay within the bounds of our discussion which is GPU/electronic prices.
Are you suggesting they price their GPUs around cost as a charity? Do the gamers a favour?
Nope but I think it’s key to highlight a vast difference in pricing strategies.
Note I'm not endorsing or justifying 'price gouging'. It's just the way the world is currently operated and I can't see nVidia, or anyone else, choosing to make less money. What would be the decision making process that'd lead them to choose lower profit margins than the biggest the market can tolerate?
The way Nvidia operates is not the way the world operates at all. Most companies do not operate with a gross margin in excess of 60%. When you compare the price gouging from Nvidia compared to Apple for example, the difference is quite noticeable. Apple is often derided for their excessive pricing and Nvidia makes their pricing strategy look like child’s play.
 
One thing I've never seen Nvidia accused of is underpaying their employees. I may have missed those stories, but my understanding is they attract a lot of talent because their employees are well compensated and are given a lot of agency. I've worked in the tech sector on low-margin products. It's not a place you want to be. Now I'm not saying Nvidia is increasing margins to be altruistic and to look after their employees better, but it is a byproduct for them from what I understand. I do think that Jensen understands you have to keep top talent happy, and part of that is paying them well and allowing them to make decisions. Margins pay for R&D, and a big chunk of that is labour. It also floats their whole ecosystem. Nvidia is as much a software company as a hardware one, and the hardware pays for the software. You don't need to pay for a CUDA license or anything, as far as I know. Nvidia has basically crushed their competition in the pc space, so there's no real incentive for them to lower prices unless their market share starts to decrease.
 
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