GPUsNews

NVIDIA to Reduce Shipments of RTX 30 Series GPUs to Combat Falling Prices and Oversupply

NVIDIA’s second-quarter earnings represented the worst quarter for the GPU-maker since 2019’s cryptocurrency crash. Flooding of the retail channel paired with reduced demand resulted in a sharp drop in the chipmaker’s gaming revenue. As you can imagine, the stocks also took a hit, falling by nearly 6% over the past week. Jensen and Co. aren’t sitting idle in anticipation of the retail inventory correcting itself. Team Green’s CEO explained that the company plans to reduce the sell-in this quarter and the next to let the channel inventory correct itself.

This basically means that the shipments of the RTX 30 series graphics cards to retailers and distributors will be clamped to drain the excess inventory, thereby allowing both demand and prices to stabilize. At the moment, the high-end Ampere GPUs including the RTX 3080 Ti, 3090, and the 3090 Ti are discounted by at least 25% across online retailers such as Newegg and Amazon.

It looks like NVIDIA has implemented “programs to price position” the existing RTX 30 series GPUs and prepare the market for the release of the next-gen RTX 40 “Lovelace” family. From what I can tell, this the RTX 4090 (and maybe the RTX 4080) will be the only next-gen product to launch this year. The higher-end Ampere offerings would occupy the midrange and upper midrange market only to be phased out by mid-2023.

Areej

Computer hardware enthusiast, PC gamer, and almost an engineer. Former co-founder of Techquila (2017-2019), a fairly successful tech outlet. Been working on Hardware Times since 2019, an outlet dedicated to computer hardware and its applications.