GPU stands for Graphics processing unit. This technology is invented through NVIDIA Compute Unified Device Architecture (CUDA). It is a specialized processor which is specially designed to accelerate or increase the speed of graphics rendering. Nowadays this technology has become one of the most important types of computing technology in both personal and business computing. From their starting, graphics processing units (GPUs) have been used for specialized purposes like intensive computations in the computer graphics like Rendering of 3D graphics. This type of computation includes in both geometry (vertices) and rasterization (pixels).
Nowadays GPUs are used everywhere in workstations, personal computers, embedded systems, game consoles, and mobile phones. Today the demand for the GPU has been shooted – up over the years. Its demand is increasing very rapidly, as everyone is using something in which this technology is used somewhere.
Graphics card costs have been the subject of several arguments and speculations, owing to the dramatic swings that they have seen in recent years. What began as a price constraint caused by crypto miners emptying out all shelves for GPUs quickly morphed into a larger global catastrophe owing to a worldwide chipset supply shortage. This resulted in a worldwide shortage of graphics cards, but even if you could get your hands on one, chances are you were paying a crazily inflated price that was much over the stated MSRPs of these GPUs.
In this fast pace world, there is a very strong pressure which is growing on to the gaming industry and the demand for the fast and high definition graphics increases which lead to the constant innovation and evolution of GPUs towards highly parallel, programmable processors with lots of GFLOPS and high throughput. The person who is addicted to PC games pays a very good amount for the GPU so that their PC can work very smoothly and most of the people do customization in their systems so that they can work fast.
We can see GPUs in many applications. At the very beginning, you can see this technology mostly in academia, but since they brought significant speedups in several domains they were adopted from the wider research community. GPUs are nowadays used in signal processing, computational physics, life sciences, computational chemistry, as well as finances, oil and gas exploration, and many more.
GPU Pricing Strategies-
1. Factors Influencing Price
There are reasons to be hopeful about graphics card costs returning to normal, but there are also a handful of reasons to be pessimistic that they will not. We will go through these factors in more detail below:
In cryptocurrency mining, we require a very high-end graphics cards. Because cryptocurrencies are so valuable, there are a lot of individuals who invested their money and buy graphics cards, and they don’t mind in spending more money for it because they know that businesses like NVIDIA are well aware of this situation and can easily raise the price of their graphics cards in response.
Cryptocurrency miners have a high demand for graphic cards.
2. The price of video games
The most recent video games are sometimes highly expensive when they first come out, and they require more powerful graphics cards to perform as per the requirement. Expensive games are frequently large and high-definition. Because of the newer games today, it requires greater processing power, the cost of designing and the engineering graphics cards to support those games will necessarily increase the price of graphics cards sold. Only by selling the product at a higher price can a greater cost of production is successful and profitable.
The prices of Graphic cards are so much different on many E-Commerce websites-
Looking through the recently sold items on eBay, I note that used GTX 1070s can be found for as little as $365, with the majority falling somewhere around the $420 mark. While that is still a hefty price for a secondhand 1070 in the great scheme of things, it does represent a significant drop in second-hand GPU prices.
When it comes to the GTX 1060s, some used 3GB models are selling for as little as $170-$200, and the 6GB version is selling for as little as $280-$300.
Now the quantity is limited due to a shortage in chipsets worldwide. And when a product does become accessible, the costs are exorbitantly expensive. From the new PlayStation 5 (PS5) and Xbox game consoles to the latest graphics processing units (GPUs) from AMD and NVIDIA, there is a severe supply shortage worldwide, including in India.
While consoles may still be purchased at retail prices despite the scarcity, it should be noted that GPUs are being sold in the grey market for double of their retail price, if not more. Graphics card supply run out quickly on the e-commerce sites.
This is most likely due to miners selling their graphics cards on the open market since the profitability of mining cryptocurrencies has decreased.
NVIDIA latest GPU Architecture is coming with amazing features this year-
NVIDIA’s next generation of GPUs GeForce RTX 3080 Ti and RTX 3070 Tiis expected to debut in the second half of 2021, according to industry consensus. That may happen in as little as 2-3 months.
While releasing new cards would not entirely address the GPU pricing, it will at least improve the supply of the GPUs accessible. A new generation of cards is also expected to help, to drive down the cost of current generation cards.
Finally, having additional price alternatives is a good thing, and NVIDIA’s forthcoming architecture will assist with that and brings a new change in future technology.
When will the GPUs pricing get normalize?
Nobody knows when GPU pricing will return to normal. We can only conjecture. For crypto mining, they will be normalized depending on ROI. At the moment, you may anticipate to pay off a 3080 after roughly 6-9 months of mining Ethereum at current inflated pricing (depending on difficulty increase). If the price of Ethereum falls, there will be a rush of used GPUs on the market, which will result in lowering the prices, but no one is sure when this will happen.