AMD & NVIDIA Could Kill Off Budget GPUs as Memory Shortages Drive Costs Up, Leaving Entry-Level Gamers With Little Options

It's mainly a PC issue as console makers order hardware in bulk and get deep discounts.
feels game of thrones GIF
 
You are this fucking stupid.
Data centres aren't the same product, they come in a lot of variations.
No genius.

If that was the case, RAM prices wouldn't be going through the roof and there wouldn't be talk of the Super series being cancelled.

Mem makers are going to 100% prioritize datacenters since they are ordering more and paying more.

There are likely still some existing contracts for companies like Sony and Nintendo to get RAM at their original prices, but once that supply dries up costs will go wayyy up.

The day this AI bubble pops will be a great day for humanity.
 
Couldn't this mean the GabeCube could release at an overpriced amount now?
The Gabecube is going to be less powerful than a PS5/XSX with less RAM (8GB VRAM only) and likely still be more expensive than them.
Valve isn't going to be able to order the same volumes for their console.
 
The Gabecube is going to be less powerful than a PS5/XSX with less RAM (8GB VRAM only) and likely still be more expensive than them.
Valve isn't going to be able to order the same volumes for their console.
The only way these remain affordable is if Valve signed a contract at a certain price before there were any indications of this being an issue.
 
Why do they?
Because they order in large amounts.

Companies that make memory kits for PCs, and/or companies that make GPUs for PCs, also order in bulk and get similar discounts. If those discounts are available.
But with the AI boom gobbling up everything, dram makers are not making discounts. They have even halted contract pricing, meaning they are just selling to the highest bidder on the moment.
 
The only way these remain affordable is if Valve signed a contract at a certain price before there were any indications of this being an issue
Yep, and I suspect the reason we didn't get a price is because the price isn't pretty. Especially with a PS5 going for $399 during BF. They will wait to announce the price later just like MS/Asus did the ROG Ally.
No genius.

If that was the case, RAM prices wouldn't be going through the roof and there wouldn't be talk of the Super series being cancelled.

Mem makers are going to 100% prioritize datacenters since they are ordering more and paying more.

There are likely still some existing contracts for companies like Sony and Nintendo to get RAM at their original prices, but once that supply dries up costs will go wayyy up.

The day this AI bubble pops will be a great day for humanity.
I think his point is that the datacenters themselves aren't the customers, the blade manufacturers of which there are many would be ordering their own separate volumes at their own prices. It's true to an extent but I agree with you that this would affect everything regardless of that.
 
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Companies that make memory kits for PCs, and/or companies that make GPUs for PCs, also order in bulk and get similar discounts. If those discounts are available.
But with the AI boom gobbling up everything, dram makers are not making discounts. They have even halted contract pricing, meaning they are just selling to the highest bidder on the moment.
Again I think his point is that there are numerous PC GPU and PC RAM OEMs ordering lower volumes individually. To an extent he is right but this is more a supply and demand issue meaning demand outstripping supply so it will affect everything in terms of price even if some consoles might get better discounts on volume.
 
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Again I think his point is that there are numerous PC GPU and PC RAM OEMs ordering lower volumes individually. To an extent he is right but this is more a supply and demand issue meaning demand outstripping supply so it will affect everything in terms of price even if some consoles might get better discounts on volume.

There are no discounts. There are no contract pricing.
 
Why do they?
Because they order in large amounts.

Enterprise is buying in massive bulk and at a higher cost.

Do you not think Graphics card manufacturers are buying in huge bulk?

There is 3 manufacturers of memory on the planet. Console manufacturers are far from the only customers buying memory in bulk. Kinda shocked you thought that way.
 
We need tech like that Neural Texture Compression to be adopted and start being used in games. "Using Neural Texture Compression (NTC), textures can be reduced in size by almost 90%. Textures make up 50-70% of VRAM usage in games"

Maybe if technology like this had already been developed and used in games earlier those budget 8gb cards wouldn't have been complete trash.

Time to focus on using AI technologies to reduce VRAM usage instead of framegen.
 
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Live service games love this environment. Little wonder everyone is trying to make the next big one (whilst dumb enthusiast gamers with no understanding of the market continue to complain about their uptick).
 
There are no discounts. There are no contract pricing.
I got that from your previous post, I know. Though I'm not sure that applies universally, especially if contracts were made before for future products. where did you read about this no contract pricing btw?
I'm just saying his logic about volume makes sense compared to blades/OEMs even if ultimately that has little effect because I agree with you that the issue is something else entirely and the discount wouldn't matter much in the grand scheme of things if there is a shortage with high demand meaning the RAM suppliers will jack up prices for everybody who doesn't already have a contract in place.
 
Yep, and I suspect the reason we didn't get a price is because the price isn't pretty. Especially with a PS5 going for $399 during BF. They will wait to announce the price later just like MS/Asus did the ROG Ally.

I think his point is that the datacenters themselves aren't the customers, the blade manufacturers of which there are many would be ordering their own separate volumes at their own prices. It's true to an extent but I agree with you that this would affect everything regardless of that.
Yes, but memmakers are going to go for the bigger profits every time. Manufacturer A for datacenters offers so much money, while someone like Valve can only offer so much. WHo are the makers going to prioritize? It's not rocket science.

The only hope is that Valve (and Sony, AMD, nvidia, even MS) has already negotiated a price that they can use for the time being. Once that allocation is used up, prices for them will go WAY up. Unless this crashes pretty soon.
 
Enterprise is buying in massive bulk and at a higher cost.

Do you not think Graphics card manufacturers are buying in huge bulk?

There is 3 manufacturers of memory on the planet. Console manufacturers are far from the only customers buying memory in bulk. Kinda shocked you thought that way.
NVIDIA, Intel and AMD? Yes, they absolutely buy parts in bulk.

Console manufacturers buy large amounts of the exact same item in bulk, that's where the discounts come in.
 
I got that from your previous post, I know. Though I'm not sure that applies universally, especially if contracts were made before for future products. where did you read about this no contract pricing btw?
I'm just saying his logic about volume makes sense compared to blades/OEMs even if ultimately that has little effect because I agree with you that the issue is something else entirely and the discount wouldn't matter much in the grand scheme of things if there is a shortage with high demand meaning the RAM suppliers will jack up prices for everybody who doesn't already have a contract in place.

It was in the news, a few days ago, that Samsung was no longer accepting contract pricing. And the other 2 manufacturers are probably following suit.

Regarding volume, PC manufacturers are probably ordering more than console makers. Dram is not only being used for gaming PCs, they are also used for millions of PCs for general working, browsing the web, etc.
And remember that PC market grew 7% in 2025.

 
Yeah there is, that's how contracts work.

You do understand that contracts have clauses, right?

Like, In the event something drastic happens that affects global supply agreed pricing is no longer on the table, those manufacturers of memory will just tell the console manufacturers that this is the situation, this is the cost of chips, . If the customer refuses to accept the increases they can wait until stock of THEIR chips is available at the agreed price. Its a lot more complicated than that was the agreed price in a contract. Manufacturers will just de commit on orders.
 
You do understand that contracts have clauses, right?

Like, In the event something drastic happens that affects global supply agreed pricing is no longer on the table, those manufacturers of memory will just tell the console manufacturers that this is the situation, this is the cost of chips, . If the customer refuses to accept the increases they can wait until stock of THEIR chips is available at the agreed price. Its a lot more complicated than that was the agreed price in a contract. Manufacturers will just de commit on orders.

It really comes down to the contract and its not worth discussing stuff we don't jnow about.

If they miss such clause it could be more expensive to not fulfill the contract.
 
Yes, but memmakers are going to go for the bigger profits every time. Manufacturer A for datacenters offers so much money, while someone like Valve can only offer so much. WHo are the makers going to prioritize? It's not rocket science.

The only hope is that Valve (and Sony, AMD, nvidia, even MS) has already negotiated a price that they can use for the time being. Once that allocation is used up, prices for them will go WAY up. Unless this crashes pretty soon.
Of course the answer is whoever pays the most for their short supply of memory. That might not necessarily be a datacenter supplier though even if datacenters are seeing rapid growth and are a bigger pie overall than gaming hardware. Same chip shortage happened during the console launches but the consoles were reasonably priced in short supply.
 
It's mainly a PC issue as console makers order hardware in bulk and get deep discounts.
For products that are widely available at normal prices, that may be true. But for products that are in high demand and whose prices are rising, you can forget about getting any meaningful volume discounts.
 
It was in the news, a few days ago, that Samsung was no longer accepting contract pricing. And the other 2 manufacturers are probably following suit.
I've read the report that the contract prices jumped 60% this month but I've not read anything about them not accepting "contract pricing" anymore. They will not disclose their contract pricing formally now but they still have them with customers I believe. Otherwise they would lose customers to the other two for those who prefer risk aversion.
Regarding volume, PC manufacturers are probably ordering more than console makers. Dram is not only being used for gaming PCs, they are also used for millions of PCs for general working, browsing the web, etc.
And remember that PC market grew 7% in 2025.

Define "PC manufacturers" here. There are a lot of them meaning individually they could very easily be ordering less for several product configurations that require different modules. Sure the market for workstations, laptops and notebooks grew as people moved away from the security risk of Win 10 support ending but there are literally hundreds of OEMs and product combinations there contributing to a tally of fundamentally different products.
 
I've read the report that the contract prices jumped 60% this month but I've not read anything about them not accepting "contract pricing" anymore. They will not disclose their contract pricing formally now but they still have them with customers I believe. Otherwise they would lose customers to the other two for those who prefer risk aversion.


According to a report by DigiTimes, Samsung, one of the largest DRAM manufacturers, has halted contract pricing for DDR5 DRAM, with other companies likely to follow suit.

Doesn't matter if some companies are risk averse. When the market is buying every memory chip and still wants more, the 3 dram makers can do whatever they want.

Define "PC manufacturers" here. There are a lot of them meaning individually they could very easily be ordering less for several product configurations that require different modules. Sure the market for workstations, laptops and notebooks grew as people moved away from the security risk of Win 10 support ending but there are literally hundreds of OEMs and product combinations there contributing to a tally of fundamentally different products.

No need to define anything. On the PC there are a few companies that buy dram chips, them make the memory modules that are then sold to consumers and AIBs alike.
 
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