Originally posted by beedubaya
Whats the deal here...?...about 3 weeks ago I paid $399 for my 7800GT and that was the cheapest there was. Now the 7800GT is $279! The 7800GT has turned into the bang-for-the-buck card this generation. Why is Nvidia dropping the price on this so fast?
NVIDIA isn't dropping the price, the market is adjusting itself now that the card has been out for awhile. When ever a card hits the market, every etailer will be selling it at Suggested Retail Value. Then once etailers have it in stock for too long... They need to start moving cards out of inventory. So the Suggested Retail now becomes market price.
Prices are really based on consumer purchasing. Look at the Opterons, if you look at the price charts... The retail value has actually increased over the last month.
If people buy a lot of them... the price stays the same or goes up. If people aren't buying them, the price will go down... Supply and Demand...
etailer's buy most of their products in (Lot's or 100 to 1000)
Wholesale Price of a 7800GT is probably around $275 per unit.
So... the etailer has some room to play with pricing. Then you'll see crazy deals like (7800GT - $289.00 with free shipping & a $20 Mail in Rebate from the Manufacturer) The Manufacturer can't sell it's new card to the etailer until the etailer unloads it's inventory of the older model. So the Manufacturer must kick in an incentive... Mail in rebates are also a gimmick. 95% of rebates offered will never even be claimed....