According to Asus, although the demand for graphics cards from the cryptocurrency market is decreasing, it will still take time to return to normal prices due to high demand from the “gaming” market.
While the price of cryptocurrencies has been falling sharply overall for several months, the demand for graphics cards from miners is undeniably falling. This is good news for PC gamers, who are the target market for the manufacturers at the base. However, according to Asus, it will still take time before returning to normal prices on graphics cards: the demand from players is precisely too strong.
The price of graphics cards does not only depend on the cryptocurrency market
In its latest results report reported by PCMagSi Hsu, co-CEO of Asus, says that “ Because demand for cryptocurrency mining on GPU shipments has slowly declined, demand for graphics cards across the market is normalizing“. However, he adds that even though this demand is decreasing, the demand for graphics cards for PC gamers is still strong, so much so that he stated that “we still don’t think we can necessarily meet all the demand“.
In fact, the demand for GPUs does not only depend on that of the cryptocurrency miner market, but also that of PC gamers, although mining farms are largely responsible for the sharp rise in prices. From this point of view, it still apparently lacks transparency on the part of the manufacturers: Nvidia has just been condemned for not having clearly enough indicated to its shareholders that the growth of its gaming segment was largely linked to the practice of cryptocurrency mining.
A price still too high compared to the prices of graphics card manufacturers
If the price of graphics cards has been up to three times higher than the prices charged by the manufacturers, the trend is for a return to normal, although there is still a long way to go. Graphics cards including Nvidia GeForce and AMD Radeon models are available, but at prices 5-10% higher than manufacturers’ suggested retail prices, according toWccftech. For example, we saw a few days ago the Nvidia GeForce TX 3070 Ti from MSI at 779 euros.
Falling prices thanks to the increase in the difficulty of mining on the latest models of graphics cards, but also thanks to the reduction in the profit margins of the mining farms. The overall rise in the price of energy and therefore of electricity also contributed to the reduction in profits.
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