NVIDIA Tells Retailers To Sell To Gamers, Not Cryptominers

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#1 Posted by airraidjet (834 posts) -

https://hothardware.com/news/nvidia-tells-retailers-to-sell-to-gamers-not-cryptominers

NVIDIA Tells Retailers To Sell To Gamers, Not Cryptominers As GPU Shortage Causes Extreme Price Gouging

There are many examples today of how PC gaming is flourishing better than ever. You only have to look towards the eSports market to understand how alive and well the ecosystem is. Games like PUBG are being played by the millions, and naturally, that's making many more want to explore the PC gaming world and the components of a killer gaming rig that are the tools of the trade.

Typical crypto-mining rig - one guess as to why GPU prices are so high right now...

This should be a time when every hard-core PC gamer should be gloating and grinning from ear-to-ear. PC gaming was never dead; it's actually picking up steam in a big way and so is the DIY PC build market. However, there is one thing that's throwing as a wrench in many a PC builder's gears currently and that's pricing. There's no way around it and it's downright painful right now. Cryptocurrency mining isn't the only reason for the currently high cost of a new gaming PC, but it's the one dynamic acting as a true roadblock to people building a new gaming PC themselves. It's also serious motivation to consider a pre-built system, even if you can build one yourself.

Amazon Pricing - GeForce GTX 1080

Memory prices are getting more wallet-punishing right now as well, but not to the extent of GPUs. A GeForce GTX 1080 from NVIDIA carries an MSRP of $499, and there have been many occasions in the past where cards at that price could be found on etailers like Amazon and Newegg. Today, those same cards can cost over $1,000. Meanwhile, GeForce GTX 1080 Tis now can only be found for roughly $1,250.

Here's a bit more proof of how crypto-mining is hurting PC gaming...

NewEgg's Six-Pack Of GTX 1080s For Only $6700?

That's not one, not two (for SLI), but sixGeForce GTX 1080 cards priced at $6,700. That's a $3,700 premium over buying the cards at what NVIDIA markets them for an MSRP. We're actually in a strange period where Tech reviewers essentially have no reason to even review GPUs currently and subsequently recommend any, due to complete lack of value proposition at these prices. We have no idea how long this gouging is going to last, but there's at least one manufacturer apparently trying to do something about it and that's NVIDIA.

You'll have to excuse our weak German translation skills. Regardless, if information recently published from tech site ComputerBase is correct, it seems at least in Europe, NVIDIA is directly asking etailers to limit the number of cards that can wind up in any one customer's hands. The suggested limit is two, which given the current situation seems fair. But is it enough?

We'd like to go back to the time where a $100 premium on an RX Vega 64 seemed high.

It's likely, that if someone wants to mine bad enough, they're going to do whatever it takes to get the hardware they need. There's a reason these GPUs are priced so high; some people are actually paying those prices. As an etailer, this situation must feel like a dream of pure greed, but at the same time, it's an insult to pretty much every PC gamer that's ever been a customer. And god help the newbies looking to finally join in on the fun and build their own rig. Perish the thought, but it's probably enough to make some gamers want to stick with consoles for now. #PCMasterRace

Ultimately, NVIDIA can request whatever it wants, but it's up to etailers and brick and mortar retailers to actually enforce those suggestions. Some may choose not to, and really, it's hard to blame them with profit margins historically always tracking the supply/demand curve. However, pricing products at sometimes many multiples over what they should be, just simply taking advantage of consumers in a bubble market like this, won't soon be forgotten.

Maybe etailers would be better served in the long run if they thought about ways to identify true gamer demand and cater to that specifically in some way, at least from a pricing standpoint. Think about it.

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#2 Posted by BassMan (9452 posts) -

Yes, this is good. Gamers first! How are peasants supposed to join the PCMR if they can not afford the hardware? These prices need to come down.

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#3 Edited by jun_aka_pekto (24555 posts) -

He He. I sense crocodile tears. If I was Nvidia, I'd be tooting my horn and holding a parade. Mmmoney..... money..... money.....

It took a while. But, I thought sooner or later, someone would take advantage of GPU processing aside from the SETI folks. Unfortunately, it's the cryptominer scum.

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#4 Posted by MonsieurX (38394 posts) -
@jun_aka_pekto said:

He He. I sense crocodile tears. If I was Nvidia, I'd be tooting my horn and holding a parade. Mmmoney..... money..... money.....

It took a while. But, I thought sooner or later, someone would take advantage of GPU processing aside from the SETI folks. Unfortunately, it's the cryptominer scum.

This is just a gigantic PR stunt from Nvidia.

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#5 Posted by airraidjet (834 posts) -

@MonsieurX said:
@jun_aka_pekto said:

He He. I sense crocodile tears. If I was Nvidia, I'd be tooting my horn and holding a parade. Mmmoney..... money..... money.....

It took a while. But, I thought sooner or later, someone would take advantage of GPU processing aside from the SETI folks. Unfortunately, it's the cryptominer scum.

This is just a gigantic PR stunt from Nvidia.

Of course it is, absolutely.

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#6 Posted by mrbojangles25 (42418 posts) -

Smart of Nvidia. They can say whatever the hell they want; once the product is out and to retailers, they don't have much control of the price.

"Sell it for 500 dollars" they'll say
"Nah, we can get 1500 dollars for it" replies the retailer
"Oh. Okay then..."

Avatar image for davillain-
#7 Posted by DaVillain- (33059 posts) -

How are they going to know who is buying them?

It seems obvious that the gaming market will outlast the mining market. So I can see why Nvidia is pleading with retailers to help keep it healthy. The last thing Nvidia wants is for PC gamers to be pushed toward consoles, (mostly towards Xbox One X) and then the mining crazy collapse on top of that. Personally, I like the idea of limiting the number of GPU purchases. But that's so easy to get around. But still, at least it's something. Every little bit helps. Even the one's who really wants to join PC community.

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#8 Posted by R4gn4r0k (29536 posts) -

Well this is only going to get worse for the next couple of years.

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#9 Posted by X_CAPCOM_X (8279 posts) -

@jun_aka_pekto: nvidia doesn't really benefit as much as the manufacturers, so they can have this stance legitimately.

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#10 Posted by Juub1990 (8247 posts) -

Lol and what are they gonna do? Ain’t no stopping me from buying these cards.

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#11 Posted by Shewgenja (20835 posts) -

The only thing that could help the price gouging is if the card makers increase their manufacturing capacity to meet the market demand. Unfortunately, cryptocurrency is such a speculative entity, that those manufacturers would be put out just as bad as the cryptominers were they to actually invest in that manufacturing capacity.

Card and chip makers are caught in a game of chicken with crypto miners. The sooner they bring their capacity up, the more they stand to make money while the market is hot. However, that market could disappear even before the ink is dry on the contracts to build new manufacturing facilities.

This uncertainty in itself threatens that hardware market, and could lead to a premature cooling off of the speculative market on the currency as well. It's an awful situation where everyone that has real money to lose is most afraid to be the first one to stick their neck out and make anything better.

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#12 Posted by BassMan (9452 posts) -

This is a good video on the matter...

Loading Video...

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#13 Edited by foxhound_fox (97527 posts) -

And this is the main reason why I went with a prebuilt laptop as opposed to building my own desktop. Not including the trucking thing, I was looking at the cost of "good" GPU's and just shaking my head. I was able to get a complete computer that plays the games I want to play for less than the gaming-spec rig I was looking at building (and honestly didn't need).

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#14 Posted by Pedro (32143 posts) -

Nvidia has no control over retailers so this plea seems more of a PR move.

But who cares if the prices are high, according to the elitist on the forum you got to pay for "quality and performance."

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#15 Posted by Baconstrip78 (1138 posts) -

I’ll wait until the crash and buy a top of the line card at pennies on the dollar. Used market will be overflowing.

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#16 Edited by BassMan (9452 posts) -

@Pedro said:

Nvidia has no control over retailers so this plea seems more of a PR move.

But who cares if the prices are high, according to the elitist on the forum you got to pay for "quality and performance."

In general, you get what you pay for, but not right now. Now you are not paying for quality, you are just getting ripped off. That is not right and is a legit problem that needs to be fixed.

Avatar image for Pedro
#17 Posted by Pedro (32143 posts) -

@BassMan said:

in general, you get what you pay for, but not right now. Now you are not paying for quality, you are just getting ripped off. That is not right and is a legit problem that needs to be fixed.

Nah its fine. Now PC gamers can brag how expensive and fast their systems are instead of just "my PC is faster than consoles". :P

PC gamers as of late has become truly obnoxious and this new trend hopefully will kick them in place. :)

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#18 Edited by jun_aka_pekto (24555 posts) -
@MonsieurX said:

This is just a gigantic PR stunt from Nvidia.

Oh well. I can stick with a CPU/mobo/RAM upgrade and keep my GTX 1060. Worst case, I stick with 1080p. Best case, I go with 21:9 1080 vertical res.

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#19 Posted by Shawty_Beatz (1269 posts) -

It's crazy, my 1070 is now almost $100 more expensive than it was almost 2 years ago when I bought it.

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#20 Posted by Shawty_Beatz (1269 posts) -

@Pedro said:

Nvidia has no control over retailers so this plea seems more of a PR move.

But who cares if the prices are high, according to the elitist on the forum you got to pay for "quality and performance."

So you're saying that you DON'T have to pay for quality and performance?

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#21 Posted by X_CAPCOM_X (8279 posts) -

@Baconstrip78 said:

I’ll wait until the crash and buy a top of the line card at pennies on the dollar. Used market will be overflowing.

Looking to add another Vega 64 to my system when the crash happens. It might be soon; I'm already licking these lips.

High end PSUs will also be overstocked. Maybe I can upgrade my PSU from 850 G2 to a 1000 G3 or Platinum or so as well.

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#22 Posted by airraidjet (834 posts) -

As far as this overall, I think things will continue to get worse before they get better.

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#23 Posted by GarGx1 (10563 posts) -

EVGA are actively limiting GPU sales to one per household (their pricing is still high though), so it's not just Nvidia that are trying to do something about it.

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#24 Edited by BassMan (9452 posts) -
@GarGx1 said:

EVGA are actively limiting GPU sales to one per household (their pricing is still high though), so it's not just Nvidia that are trying to do something about it.

They are still contributing to the problem though by doing direct sales at those prices. It is one thing to sell to retailers at cost and then have the retailers be the douches and mark them up so high. However, it is another thing when an AIB manufacturer is selling direct to customers at inflated prices. This could really get out of control if Nvidia/AMD start marking up the actual GPU chips to AIB partners. This whole situation fucking sucks. I am not liking this at all.

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#25 Posted by joebones5000 (1889 posts) -

Boo hoo. Pay the premium or buy a console.

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#26 Edited by BassMan (9452 posts) -

@joebones5000 said:

Boo hoo. Pay the premium or buy a console.

I can afford to buy them, but out of principle, I am not going to overpay for something that is way overpriced. I am lucky enough to have a 1080 Ti already, but I am worried what effect this may have if I want to upgrade to Volta after and this shit is still going on.

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#27 Posted by joebones5000 (1889 posts) -

@BassMan said:
@joebones5000 said:

Boo hoo. Pay the premium or buy a console.

I can afford to buy them, but out of principle, I am not going to overpay for something that is way overpriced. I am lucky enough to have a 1080 Ti already, but I am worried what effect this may have if I want to upgrade to Volta after and this shit is still going on.

I hear you. I want a complete re-buld with a Ryzen and 1080, but no way in hell am I paying these absurd prices. I am buying a ps4 pro instead. Can't justify a pc now with this shit.

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#28 Posted by GarGx1 (10563 posts) -

If you look into some solid advice on Bitcoin, it's generally advised that people buy bitcoins rather than try mining them, the return is much greater. The people throwing money into half a dozen GTX 1080Ti's and a couple of 1200w PSU's for home mining are essentially doing it wrong.

@BassMan said:
@joebones5000 said:

Boo hoo. Pay the premium or buy a console.

I can afford to buy them, but out of principle, I am not going to overpay for something that is way overpriced. I am lucky enough to have a 1080 Ti already, but I am worried what effect this may have if I want to upgrade to Volta after and this shit is still going on.

A micro crash will happen soon and then panic will set in and the majority of home miners will lose a lot of money.

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#29 Posted by BassMan (9452 posts) -
@joebones5000 said:
@BassMan said:
@joebones5000 said:

Boo hoo. Pay the premium or buy a console.

I can afford to buy them, but out of principle, I am not going to overpay for something that is way overpriced. I am lucky enough to have a 1080 Ti already, but I am worried what effect this may have if I want to upgrade to Volta after and this shit is still going on.

I hear you. I want a complete re-buld with a Ryzen and 1080, but no way in hell am I paying these absurd prices. I am buying a ps4 pro instead. Can't justify a pc now with this shit.

I have a PS4 Pro for the exclusives, but it is no substitute for a PC as a primary platform. You should consider a pre-built PC....

http://www.pcgamer.com/with-gpu-prices-peaking-now-is-a-good-time-to-buy-a-prebuilt-gaming-pc/

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#30 Posted by joebones5000 (1889 posts) -

@BassMan said:
@joebones5000 said:
@BassMan said:
@joebones5000 said:

Boo hoo. Pay the premium or buy a console.

I can afford to buy them, but out of principle, I am not going to overpay for something that is way overpriced. I am lucky enough to have a 1080 Ti already, but I am worried what effect this may have if I want to upgrade to Volta after and this shit is still going on.

I hear you. I want a complete re-buld with a Ryzen and 1080, but no way in hell am I paying these absurd prices. I am buying a ps4 pro instead. Can't justify a pc now with this shit.

I have a PS4 Pro for the exclusives, but it is no substitute for a PC as a primary platform. You should consider a pre-built PC....

http://www.pcgamer.com/with-gpu-prices-peaking-now-is-a-good-time-to-buy-a-prebuilt-gaming-pc/

I would never buy a pre-built. It just feels all wrong. I'm still rocking my fx 6300 with gtx 1050 playing on a 720p tv and 900p monitor. I want to play exclusives from Sony and a ps4pro is probably a bit of an upgrade over what I have now.

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#31 Posted by Juub1990 (8247 posts) -
@GarGx1 said:

If you look into some solid advice on Bitcoin, it's generally advised that people buy bitcoins rather than try mining them, the return is much greater. The people throwing money into half a dozen GTX 1080Ti's and a couple of 1200w PSU's for home mining are essentially doing it wrong.

A micro crash will happen soon and then panic will set in and the majority of home miners will lose a lot of money.

If you want solid advice don't buy bitcoins at all. Buy Ethereum and flip it into Altcoins. Bitcoin transaction fees are way too high and its growth is pathetic compared to some other Altcoins. If you wanna mine like I do, mine Altcoins. The best of both world is to buy Altcoins AND mine them.

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#32 Edited by BassMan (9452 posts) -

@joebones5000 said:
@BassMan said:
@joebones5000 said:
@BassMan said:

I can afford to buy them, but out of principle, I am not going to overpay for something that is way overpriced. I am lucky enough to have a 1080 Ti already, but I am worried what effect this may have if I want to upgrade to Volta after and this shit is still going on.

I hear you. I want a complete re-buld with a Ryzen and 1080, but no way in hell am I paying these absurd prices. I am buying a ps4 pro instead. Can't justify a pc now with this shit.

I have a PS4 Pro for the exclusives, but it is no substitute for a PC as a primary platform. You should consider a pre-built PC....

http://www.pcgamer.com/with-gpu-prices-peaking-now-is-a-good-time-to-buy-a-prebuilt-gaming-pc/

I would never buy a pre-built. It just feels all wrong. I'm still rocking my fx 6300 with gtx 1050 playing on a 720p tv and 900p monitor. I want to play exclusives from Sony and a ps4pro is probably a bit of an upgrade over what I have now.

I hear you on wanting to build it yourself. As long as you are going to enjoy the Sony exclusives, PS4 Pro seems like a good option for you in the meantime until things settle down on the PC front.

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#33 Posted by Epak_ (10470 posts) -

I wonder how much the prices will sink once the crash hits, that might be the time to build a 3D modeling rig + music stuff.

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#34 Edited by Addict187 (1047 posts) -

@Juub1990 said:
@GarGx1 said:

If you look into some solid advice on Bitcoin, it's generally advised that people buy bitcoins rather than try mining them, the return is much greater. The people throwing money into half a dozen GTX 1080Ti's and a couple of 1200w PSU's for home mining are essentially doing it wrong.

A micro crash will happen soon and then panic will set in and the majority of home miners will lose a lot of money.

That is so cute you think people buy high-end GPU's to mine Bitcoin. they are buying them to get a head start on the next crypto bandwagon Ethirum, light coin or whatever there 100's of cryptocurrency. pick a few start mining a and hope you get in early and the price dos a bitcoin and skyrockets. That is what is going on

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#35 Edited by Vatusus (8950 posts) -

And how exactly will the retail stores know one is a gamer and not a cryptominer?

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#36 Posted by Jak42 (1091 posts) -

So blessed that I build my just under $800 dollar build, with Windows and accessories included. Just weeks before the 1060 3 Gig I brought is now worth almost half my entire build. Thanks to a post Christmas clearance bundle.

@jun_aka_pekto said:

He He. I sense crocodile tears. If I was Nvidia, I'd be tooting my horn and holding a parade. Mmmoney..... money..... money.....

It took a while. But, I thought sooner or later, someone would take advantage of GPU processing aside from the SETI folks. Unfortunately, it's the cryptominer scum.

Nvidia isn't really rolling in money now. The price markup profits are going to retailers and 3rd party sellers. And pending a very likely crypto crash. Miners will dump their excessive GPU's for pennies on ebay. Making Nvidia's GPU inventory unsellable. So from a business perspective, Nvidia sees the danger of the crypto bubble drastically affecting their bottom line in the future.

Avatar image for AzatiS
#37 Edited by AzatiS (14969 posts) -

- S: Hi, may i help you ?

-B: Yes please, i would like to know about Nvidia 1080 Ti you have on offer

- S: Yes, this card is the best.

- B: Cool, im buying.

- S: Oh, may i ask you something ?

- B: Sure

- S: Are you a gamer or a miner ?

- B: A miner

- S: Sorry then, we selling only to gamers because NVIDIA said so. We wont accept your $700.

- B: But ...

- S: STFU, no card for you, we dont need your money, GTFO ! Nvidia for gamers only.

TRUE STORY !

Avatar image for Pedro
#38 Posted by Pedro (32143 posts) -

@shawty_beatz said:
@Pedro said:

Nvidia has no control over retailers so this plea seems more of a PR move.

But who cares if the prices are high, according to the elitist on the forum you got to pay for "quality and performance."

So you're saying that you DON'T have to pay for quality and performance?

No I am saying you can't complain because "you got to pay for quality and performance".

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#39 Posted by Bikouchu35 (8276 posts) -

@mrbojangles25 said:

Smart of Nvidia. They can say whatever the hell they want; once the product is out and to retailers, they don't have much control of the price.

"Sell it for 500 dollars" they'll say

"Nah, we can get 1500 dollars for it" replies the retailer

"Oh. Okay then..."

Probably some truth in this assumption imo. If nvidia or I guess amd too really cared about this they would make steps to make it less mining friendly through warranty disclaimers, drivers, hardware, etc., but they don't.

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#40 Posted by NoodleFighter (9787 posts) -

If Nvidia really wanted to stop miners they could just release a line of cards just for miners and make the Geforce consumer GPUs come with a EULA and drivers that prevent it from working with cryptomining. Nvidia is already doing it with data center/ AI applications so they can make people buy their Tesla cards instead of using Geforce consumer GPUs. They could hit crypto miners hard if they do this.

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#41 Edited by Zaryia (6733 posts) -

@Pedro said:

PC gamers as of late has become truly obnoxious and this new trend hopefully will kick them in place. :)

I'm sorry but the console trolls are considerably worse. Just look at any Giovela/M3dude post.

Avatar image for Pedro
#42 Posted by Pedro (32143 posts) -

@zaryia said:
@Pedro said:

PC gamers as of late has become truly obnoxious and this new trend hopefully will kick them in place. :)

I'm sorry but the console trolls are considerably worse. Just look at any Giovela/M3dude post.

I stand by my statement.

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#43 Edited by JasonOfA36 (984 posts) -

@NoodleFighter said:

If Nvidia really wanted to stop miners they could just release a line of cards just for miners and make the Geforce consumer GPUs come with a EULA and drivers that prevent it from working with cryptomining. Nvidia is already doing it with data center/ AI applications so they can make people buy their Tesla cards instead of using Geforce consumer GPUs. They could hit crypto miners hard if they do this.

Some board partners did. The "strictly mining" cards failed as it had no resale value because it had no video outputs. Now for the drivers, it would be extremely hard to code as the usage of the GPU when mining and gaming isn't so different. The driver wouldn't differentiate mining from gaming.

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#44 Posted by Addict187 (1047 posts) -

@NoodleFighter said:

If Nvidia really wanted to stop miners they could just release a line of cards just for miners and make the Geforce consumer GPUs come with a EULA and drivers that prevent it from working with cryptomining. Nvidia is already doing it with data center/ AI applications so they can make people buy their Tesla cards instead of using Geforce consumer GPUs. They could hit crypto miners hard if they do this.

Could they just release a line of cards just for miners? LOL by the time they get that out the door the whole thing could crash. Plus the miners want to be able to sell the GPU to gamers when the crash comes. AMD, Nivida have no idea what to do at the moment. I say take advantage of the whole crypto market and jake the price up. That is what I would do as CEO at Nivida AMD

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#45 Edited by Gaming-Planet (19659 posts) -

Nvidia tells retailers to not sell their cards to miners

Miners don't care and just lie.

PR Stunt is ineffective.

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#46 Edited by Juub1990 (8247 posts) -

@Vatusus said:

And how exactly will the retail stores know one is a gamer and not a cryptominer?

They can't. 130x1080 Ti build.

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#47 Posted by danjammer69 (4301 posts) -

@Baconstrip78 said:

I’ll wait until the crash and buy a top of the line card at pennies on the dollar. Used market will be overflowing.

Exactly. Let's just hope it happens when the GPU of choice is still relevant.

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#48 Edited by I_P_Daily (9468 posts) -

How funny the laster race is complaining about price.

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#49 Posted by FLOPPAGE_50 (4461 posts) -

@Juub1990 said:

They can't. 130x1080 Ti build.

@Vatusus said:

And how exactly will the retail stores know one is a gamer and not a cryptominer?

That's nuts

Avatar image for mrbojangles25
#50 Posted by mrbojangles25 (42418 posts) -

@NoodleFighter said:

If Nvidia really wanted to stop miners they could just release a line of cards just for miners and make the Geforce consumer GPUs come with a EULA and drivers that prevent it from working with cryptomining. Nvidia is already doing it with data center/ AI applications so they can make people buy their Tesla cards instead of using Geforce consumer GPUs. They could hit crypto miners hard if they do this.

The issue is that a lot of folks, including Nvidia and AMD, are not sure if Bitcoin is a fad or something worth investing in. You don't want to make an entirely new product with its own production line on something that could be non-existent in less than a few years.

Otherwise I totally agree, said as much in another thread.