Original: Selling 30M GPUs with a huge margin is more profitable than selling 60M GPUs with a modest margin.
Modified: Nvidia and AMD must sell at a higher ASP because the market for discrete GPUs has shrunk from 60m to 30m/year.
That's your answer! It's what I've been arguing for since my very first post. It isn't Nvidia and AMD's choice to have the market shrink in terms of raw volume. It's because many midrange gamers have largely moved onto laptops, phones, and consoles for gaming since 2010. The remaining PC gamers are willing to pay more for discrete GPUs. Hence, both Nvidia and AMD don't bother making compelling midrange GPUs.
I remember midrange GPUs that have great value such as the AMD HD 4850. I don't think those days are ever coming back.
> Modified: Nvidia and AMD must sell at a higher ASP because the market for discrete GPUs has shrunk from 60m to 30m/year.
That makes no sense as a reason not to sell more.
It also makes no sense in general because discrete GPUs aren't a distinct technology. The H100 isn't literally a bunch of RTX cards glued together, but it's approximately that and the same R&D goes into both, implying that the higher demand for this technology should allow for lower ASPs as you now have a new source of demand to spread the R&D costs into.
And the same is true for consoles and laptops. It's the same technology, it's just soldered to something instead of being in a PCIe card. Discrete GPUs aren't expensive because they can't justify the cost of the printed circuit board without selling more units, they're expensive because the market is consolidated and in the absence of more competition, Nvidia charges what they can get away with even when that is far in excess of what they would need to charge simply to remain a viable business.
> I remember midrange GPUs that have great value such as the AMD HD 4850. I don't think those days are ever coming back.
The way you get those days back is to get more competition. Support AMD and Intel and anyone else who might present a viable challenge to Nvidia so that Nvidia has to provide better value for money to keep you from switching.
It makes sense because there is now less demand for midrange GPUs than before. But high end GPUs have either increased demand or stay the same, making high end GPUs more lucrative.
You seem to think that midrange market shrunk in volume because Nvidia decided to stop offering value products, is that right?
Don’t support AMD or Intel if they have inferior products. There are now plenty of GPU makers out there including Qualcomm and Apple. Let’s not become fanboys here. R/ayymd is where you want to go if you want to become a blind AMD supporter.
Although I would modify your statement slightly:
Original: Selling 30M GPUs with a huge margin is more profitable than selling 60M GPUs with a modest margin.
Modified: Nvidia and AMD must sell at a higher ASP because the market for discrete GPUs has shrunk from 60m to 30m/year.
That's your answer! It's what I've been arguing for since my very first post. It isn't Nvidia and AMD's choice to have the market shrink in terms of raw volume. It's because many midrange gamers have largely moved onto laptops, phones, and consoles for gaming since 2010. The remaining PC gamers are willing to pay more for discrete GPUs. Hence, both Nvidia and AMD don't bother making compelling midrange GPUs.
I remember midrange GPUs that have great value such as the AMD HD 4850. I don't think those days are ever coming back.