The demand-supply mismatch was one of the major reasons for the inflated prices of GPUs.
After years of chip shortages driving up the price of Graphics Processing Units, or GPUs, the trend has finally reversed, and GPUs are becoming more affordable (read: reverting to their original prices).
According to 3dcenter.org, the prices of graphics cards are steadily declining and have approached the list price level. In June, AMD graphics card prices fell by less than 8% off their Manufacturer’s Suggested Retail Price, or MSRP. Nvidia is still up 2% from its MSRP last month, but costs have dropped significantly from December’s near-90 percent increase from MSRP.
The demand-supply mismatch was one of the major reasons for the inflated prices of GPUs.
An increase in leisure activities during the pandemic gave way to a surge in demand for graphic cards. Moreover, the then-booming cryptocurrency drove crypto miners to stockpile GPUs in anticipation of lucrative returns through mining.
The shipping industry took a major hit during the pandemic, disrupting the supply all over the world. However, as most Covid-led transportation restrictions around the world have been lifted and factory output has returned to pre-pandemic levels, supply interruptions have been alleviated to a great extent.
Another piece of good news for gamers occurred earlier this year, when the United States eliminated import tariffs on Chinese graphic cards. Following the news, Asus, a Taiwan-based multinational computer and phone hardware and electronics manufacturer, announced a price reduction of up to 25% on graphic cards. This is a clear example of manufacturers passing on cost savings to customers.
According to IGN, Nvidia’s graphics cards were in high demand by crypto miners about a year ago and reached about 300 percent of their original MSRP, while AMD cards peaked at more than 200 percent. However, the current cryptocurrency meltdown has caused miners to cut positions, making graphic cards more readily available on the market.
The recovery from the pandemic, a persistent slump in the crypto market, and constant monitoring of chip shortages by global regulators will almost certainly help meet demand for graphics cards at their intended prices. Rejoice, gamers!
