Unknown Soldier
Member
The reality is they can't just arbitrarily undercut Nvdia by >30% or more, because they buy the same chips from the same company Nvidia does. TSMC charges what they charge for chips made on their advanced nodes, so AMD's cost structure isn't really much different from Nvidia's and they aren't going to take a loss on their niche GPU products for no good reason so they pass those costs on. This is why AMD on a structural level can't just say fuck it we'll charge 50% of what Nvidia charges for similar performance level, that would just make them lose billions of dollars and accomplish nothing because they don't want to sell a lot of GPU's and lose money on each one. They would rather just sell more Ryzen CPU's and make a lot of money on those.It does if its >=30% cheaper than the competition. Amd is trying to play Nvidia's margins game when they're not the market leader. A very very bad strategy that will lead to the market leader increasing their market share.
Realistically, AMD needs to roll back it's pricing to 2015 era or even prior. They need to go for volume instead of margin in the consumer space. They're killing themselves with their prices. Right now, amd is trying to sell the 7800xt for $499. That GPU should realistically be $399 if they want to shake up the market. They need to cater to the low end and leave Nvidia to the high end. They can't price themselves like Nvidia until they're the GPU leader. This Nvidia pricing minus 10-15% will not cut it.