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To Combat Shortage, Nvidia Asks Retailers To Limit Graphics Card Orders (pcmag.com)
An anonymous reader writes: If you're a PC builder -- or your aging desktop system is in dire need of some modern upgrades -- you've probably wondered why it's impossible to get a graphics card lately. You can thank the outrageous interest in cryptocurrency for all of this. Since graphics cards mine cryptocurrency much faster than CPUs, an eager community of get-rich-quick enthusiasts are scooping up graphics cards as fast as they can get them. While there isn't much major manufacturers AMD and Nvidia can do about the overwhelming demand for GPUs, Nvidia is at least trying to let retailers know that they should be holding their stock for the company's core audience: gamers, not miners. "For NVIDIA, gamers come first. All activities related to our GeForce product line are targeted at our main audience. To ensure that GeForce gamers continue to have good GeForce graphics card availability in the current situation, we recommend that our trading partners make the appropriate arrangements to meet gamers' needs as usual," reads a translated statement Nvidia's Boris Bohles. Nvidia is suggesting that retailers limit graphics card orders to just two per person, but that's just an idea -- one Nvidia can't actually enforce beyond restricting sales on its website, which it's currently doing. Further reading: It's a terrible time to buy a graphics card.
nVidia knows two things: First, gamers will need graphics cards. Now, tomorrow, forever. Miners will need a lot of cards now but whether they will still buy any with the next generation is questionable. First question, is cryptocurrency still a thing and second, is GPUs still where the bitcoins are. If they can't supply enough cards to meet the demand today anyway, there is no point in trying to suck up to any customers today. But you might have to see where you get your customers tomorrow.
And second, gamers might have a preference for nVidia today, but they will buy AMD if they can't get nVidia cards for a reasonable price. If the gaming market suddenly gets flooded with AMD cards, game makers will stop optimizing mainly for nVidia. If there are more people playing on AMD than on nVidia, game makers will optimize for AMD.
And who'd then buy an nVidia card tomorrow when there (possibly) isn't a demand for crypto mining anymore?
We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
Nvidia doesn't mind selling tons of GPUs to whoever has money.
But what they don't want is for all the $popular_crypto_coin to suddenly crash (and it looks like they're about to) and then flood the market with dirt cheap used GPUs and leave Nvidia in the lurch unable to sell $Gpu->filter('this_year')->get_newest()
By doing this they can continue the high demand for their products and try to smooth out the coming bumps and dips.