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Old 02-07-2006, 05:48 PM   #1 (permalink)
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Default Graphics cards price drops!

Alright, I'll admit I tailored the name to make it a more 'click worthy' thread but I was just wondering, will there be a drop in the price of graphics cards anytime soon? I mean, the 7900 GTX is on the horizon and the X1900 has been out for a little while. So, will the prices of say, the 7800 series drop or are they going to remain at around the same for many more months to come?

I was just wondering as I'm considering whether to get a 7800 GT, or splash out on a GTX.
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Old 02-07-2006, 08:03 PM   #2 (permalink)
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i think the price drop is predicted for around July.
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Old 02-07-2006, 08:42 PM   #3 (permalink)
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Price drops or increases are purely governed by the market.

MSRP or Manufacturer's Suggested Retail Price is a median price a manufacturer recommends to even prices in various sales mediums.
This price is adjusted based on the market.

If the supply is small and a lot of people want a product, the price will increase. (7800GTX 512MB - hard to find $749)

If the supply is large and the demand is small, the retailers price may drop to stimulate sales. (7800GT - $279)

Also - Manufacturer's base their MSRP on cost of manufacturing & packaging and their percentage of profit. Then a % is added for retailer profit.

Retailers normally buy products from Manufacturers in very large quantities. Also known as wholesale. Based on the wholesale price of a product vs. MSRP / market demand, retailers adjust their price either higher or lower.

Online Retailers like newegg & zipzoomfly buy products in extremely large quantities. (100 - 1000) Units. Buy 1000 units of let's say a AMD 3200+ Venice, probably costs the retailer $150 per unit. And say the MSRP is $200. The retailer can now adjust it's prices vs. competition and the market. newegg.com has them for $169 - ZZF has them for 172.80. As the supply of AMD 3200+ gets lower and the demand increases... prices might get higher... or is the demand gets lower so may the prices.

New Products released on the market doesn't mean the previous ones will automatically be lowered in price. This is a huge misconception. Many times, the price many actually be increased of the previous product. (Older AMD cores pre/ Venice & San Diego)

I hope this clears things up.
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