If you query the graphics card price, you will be surprised to know the sky-high price.
But what are the reasons for such a higher price?
Is the price obvious or unreasonably high?
In this article, I will explain why graphics cards prices are now so pricey.
Why Are Graphics Cards So Expensive?
As a gamer, it is very frustrating to look at the GPU price graph.
Thesteep price is so high like the CPU.
A straight $500 jump!
Aside from Nvidia, AMDs latest RX 7900 XTX has a launch price tag of $1000.
Here are the 6 reasons why the graphics cards price is high:
1.
As they share the same fabrication technology, any problems related to it will affect all sectors & products.
During the Covid-19 pandemic started in China, the chip manufacturers failed to meet the demand & supply ratio.
Multiple factories got shut down & the major chip producerTSMCgot hit in production for lacking ultrapure water.
All these combinations make chip shortage for the graphics card, which drastically influences the price.
And then there are scalpers, who instantly buy the maximum of the cards & create shortages.
As people have to buy GPUs, they were forced to buy the cards at almostdoubledprices!
This scalper situation creates this havoc on the GPU price.
Here you’re able to see, the prices went almost doubled from the initial price.
Crypto Miners
There are other people that work similarly, like the scalpers who affect the GPU price.
These people buy multiple units of cards and mine cryptocurrency.
So, it isnt helping that much.
Inflation
During the COVID-19 outbreak, & then the unwantedUkraine-Russiawar breaks the supply chain.
This causes money inflation.
Transportation gets interrupted & people have to buy products from other sources.
FromPresident Trumpsspell, shipping costs increased by about25%fromChina.
This puts an additional cost on shipping charges.
As a result, this impacts the total product cost.
Modern GPUs use high-quality PCB & materials with advanced technology.
Features likeDLSS,FSR,Ray Tracing, etc.
also needRT coresfor better performance which increases
the production cost & thus the higher MSRP.
As Nvidia is dominating the GPU market with advanced technology, AMD cant cope with the competition yet.
AdditionalR&Dcost is another factor that influences the price.
This insufficient completion makes Nvidia set their cards at a higher price.
This is why Nvidia cards are more expensive than AMD.
Brands
Brand is a word by which everyone recognizes something at a glance.
Top brand products always have a high demand.
The brand manufacturer knows theirvalue& is aware of theirreputation.
They take the opportunity & demand a premium value for their brand products.
For brand value, they always stay on the top of the list for picking a product.
During the introduction of the Nvidia 40 series, the company was still advertising its RTX 30 series.
As, when a new product launches, there is a cut down in the previous GPUs.
But thats not the case this time for the pandemic & Russia-Ukraine war.
Is there a right time to purchase your GPU?
Before the launch of new series, usually there is a price drop for the previous series GPUs.
How Much GPU VRAM is needed for gaming?
For 8k gaming, 12GB to 24GB VRAM will be enough.
For 1080p gaming, 8GB & for 720p gaming, 4GB VRAM will be sufficient.
Final Thought
To wrap up, COVID-19 impacts a lot on every products pricing.
Graphics cards are one of those that got hit on prices.
Besides the pandemic, scalpers & crypto mining played a huge role in increasing the GPU price.
In this article, I described why GPUs are pricey at the moment.
