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Nvidia won, we all lost

(blog.sebin-nyshkim.net)
977 points todsacerdoti | 1 comments | | HN request time: 0.215s | source
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strictnein ◴[] No.44469082[source]
This really makes no sense:

> This in turn sparked rumors about NVIDIA purposefully keeping stock low to make it look like the cards are in high demand to drive prices. And sure enough, on secondary markets, the cards go way above MSRP

Nvidia doesn't earn more money when cards are sold above MSRP, but they get almost all the hate for it. Why would they set themselves up for that?

Scalpers are a retail wide problem. Acting like Nvidia has the insight or ability to prevent them is just silly. People may not believe this, but retailers hate it as well and spend millions of dollars trying to combat it. They would have sold the product either way, but scalping results in the retailer's customers being mad and becoming some other company's customers, which are both major negatives.

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rubyn00bie ◴[] No.44469420[source]
> Scalpers are a retail wide problem. Acting like Nvidia has the insight or ability to prevent them is just silly.

Oh trust me, they can combat it. The easiest way, which is what Nintendo often does for the launch of its consoles, is produce an enormous amount of units before launch. The steady supply to retailers, absolutely destroys folks ability to scalp. Yes a few units will be scalped, but most scalpers will be underwater if there is a constant resupply. I know this because I used to scalp consoles during my teens and early twenties, and Nintendo's consoles were the least profitable and most problematic because they really try to supply the market. The same with iPhones, yeah you might have to wait a month after launch to find one if you don't pre-order but you can get one.

It's widely reported that most retailers had maybe tens of cards per store, or a few hundred nationally, for the 5090s launch. This immediately creates a giant spike in demand, and drove prices up along with the incentive for scalpers. The manufacturing partners immediately saw what (some) people were willing to pay (to the scalpers) and jacked up prices so they could get their cut. It is still so bad in the case of the 5090 that MSRP prices from AIBs skyrocketed 30%-50%. PNY had cards at the original $1999.99 MSRP and now those same cards can't be found for less than $2,999.99.

By contrast look at how AMD launched it's 9000 series of GPUS-- each MicroCenter reportedly had hundreds on hand (and it sure looked like by pictures floating around). Folks were just walking in until noon and still able to get a GPU on launch day. Multiple restocks happened across many retailers immediately after launch. Are there still some inflated prices in the 9000 series GPUs? Yes, but we're not talking a 50% increase. Having some high priced AIBs has always occurred but what Nvidia has done by intentionally under supplying the market is awful.

I personally have been trying to buy a 5090 FE since launch. I have been awake attempting to add to cart for every drop on BB but haven't been successful. I refuse to pay the inflated MSRP for cards that haven't been been that well reviewed. My 3090 is fine... At this point, I'm so frustrated by NVidia I'll likely just piss off for this generation and hope AMD comes out with something that has 32GB+ of VRAM at a somewhat reasonable price.

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ksec ◴[] No.44469671[source]
>Oh trust me, they can combat it.

As has been explained by others. They cant. Look at the tech which is used by Switch 2 and then look at the tech by Nvidia 50 series.

And Nintendo didn't destroy scalpers, they are still in many market not meeting demand despite "is produce an enormous amount of units before launch".

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1. rubyn00bie ◴[] No.44476203[source]
If you put even a modicum of effort into trying to acquire a Switch 2 you can. I’ve had multiple instances to do so, and I don’t even have interest in it yet. Nintendo even sent me an email giving me a 3 day window to buy one. Yes, it will require a bit of effort and patience but it’s absolutely possible. If you decide you want one “immediately” yeah you probably are going to be S.O.L. but it has literally been out a month as of today. I’d bet by mid August it’s pretty darn easy.

Nintendo has already shipped over 5 million of them. That’s an insane amount of supply for its first month.

Also, Nvidia could have released the 50-series after building up inventory. Instead, they did the opposite trickling supply into the market to create scarcity and drive up prices. They have no real competition right now especially in the high end. There was no reason to have a “paper launch” except to drive up prices for consumers and margins for their board partners. Process node had zero to do with what has transpired.