Why GPU MSRP Prices are Complete Nonsense

Summary

In this video, the presenter critiques the MSRP pricing of Nvidia's RTX 5060 Ti, 5070, 5070 Ti, and other GPUs, highlighting price hikes and market trends. The video compares street prices across different regions like the US and Australia, noting significant inflation and artificial premiums on certain models, especially the 5090. The presenter also discusses AMD's RX 970 as a more reasonable alternative. Ultimately, the analysis underscores the disappointing value of many new Nvidia cards, emphasizing the need for gamers to carefully consider price-to-performance ratios in a market flooded with inflated prices.

Takeaways

• 😀 Nvidia's MSRP pricing for the RTX 5060Ti (8GB and 16GB) is criticized as unrealistic due to inconsistencies in real-world street pricing and stock availability.
• 💸 The 16GB variant of the RTX 5060Ti is priced $50 higher than the 8GB version, which some believe is a price gouge, especially after previous controversies with the RTX 4060 Ti.
• 📈 Price hikes are driven by new tariffs in the US, causing the cost of graphics cards to rise by about 10%, in addition to fluctuating international pricing.
• 🇦🇺 In Australia, the MSRP for the RTX 5060Ti is 22% higher than in the US after converting the prices to AUD and factoring in the 10% GST tax.
• 🛑 The RTX 5090 is seen as offering extremely poor value, with a 90% price increase over the MSRP in the US and no stock availability in Australia.
• 💻 Street pricing for mid-range Nvidia cards like the RTX 5070 Ti and 5070 varies significantly between the US and Australia, with significant markup in both regions.
• ⚖️ AMD's RX 970 and RX 970 XT cards are highlighted as strong value contenders, especially when compared to the inflated prices of Nvidia’s new releases.
• 📉 Despite a strong start, Nvidia’s mid-range cards (like the 5060Ti) are not seen as a good deal due to performance cuts and pricing inflation over multiple generations.
• 🔍 There is concern that if high-end Nvidia cards (like the 5090) continue to sell at inflated prices, it will reduce market competition and stunt technological progress.
• 🔄 The comparison between US and Australian prices shows that, despite some expected differences due to taxes and tariffs, Nvidia’s pricing strategy seems to be universally problematic.

Q & A

Why does the presenter think the MSRP prices of the RTX 5060 Ti are 'bogus'?

The presenter believes the MSRP prices of the RTX 5060 Ti are 'bogus' because they reflect unrealistic pricing trends, and the actual street prices are significantly higher due to tariffs, scarcity, and price gouging. He highlights how the RTX 5060 Ti 16 GB model is priced $50 higher than the 8 GB version, a trend seen in previous releases, and this discrepancy makes the card unappealing compared to other alternatives.

What is the significance of the tariffs mentioned in the video?

The tariffs are significant because they contribute to price hikes on graphics cards. The video mentions a 10% mandatory tariff on products like GPUs in the US, which inflates the final retail prices. This also impacts the international pricing, leading to higher prices in other countries like Australia.

How does the presenter compare the prices of GPUs between the USA and Australia?

The presenter compares GPU prices in the USA and Australia by factoring in the mandatory 10% GST tax in Australia and the 10% tariff in the USA. He highlights discrepancies where Australian prices are consistently higher, sometimes up to 22% more expensive than the MSRP when converted from USD to AUD, even after accounting for taxes and tariffs.

What was the impact of the scarcity of RTX 5080 and 5090 GPUs in the market?

The scarcity of the RTX 5080 and 5090 GPUs in the market was significant, with the presenter noting that these cards were virtually unavailable in early months of 2025, leading to inflated prices. This scarcity led to frustration as consumers could not access the cards at their MSRP or even find them in stock.

How does the RX 970 perform in comparison to other GPUs mentioned?

The RX 970 stands out as a better value option compared to other cards, with the presenter highlighting that it only sees a 20% price hike compared to other GPUs, which have much higher price increases. The RX 970 also provides solid raw performance and efficiency, making it a good value alternative to Nvidia's offerings.

What are the key concerns regarding the RTX 5060 Ti, according to the presenter?

The presenter expresses concern that the RTX 5060 Ti lacks a significant performance upgrade compared to previous generations, particularly with the 8 GB version. He believes the 5060 Ti fails to offer a substantial leap in performance, and the pricing is inflated due to artificial price hikes, making it unappealing for gamers.

Why does the presenter feel the RTX 5060 Ti is a poor value proposition?

The presenter feels the RTX 5060 Ti is a poor value proposition because, despite being a 'Ti' model, it doesn't provide a revolutionary upgrade over the 4060 Ti, and the pricing for both the 8 GB and 16 GB versions are higher than what they should be. There are better value options available on the market, including used GPUs and the RX 970.

What did the presenter mean by an 'artificial premium' on GPUs?

An 'artificial premium' refers to the additional cost on GPUs that isn't justified by the actual value or performance of the card. In the video, the presenter points out how the pricing for cards like the RTX 5060 Ti is artificially inflated due to factors like tariffs, scarcity, and market conditions, leading to inflated prices that don't align with the card's true value.

What is the impact of business-to-business (B2B) demand on the pricing of GPUs?

The presenter discusses how business-to-business (B2B) demand, especially for high-end GPUs like the RTX 5090, affects availability and pricing. He suggests that after B2B demand is fulfilled, there may be less silicon left for consumer-grade GPUs, which results in higher prices for cards like the RTX 5080 and RTX 5090. This situation exacerbates the pricing disparity between high-end cards and lower-end models.

How does the presenter feel about the future of the GPU market?

The presenter is concerned about the future of the GPU market, believing that the current trends of inflated prices and limited availability will lead to stagnation. He warns that supporting these high prices through consumer purchases will only continue to stifle innovation and create a less competitive market, which could lead to poor value and limited improvements in GPU technology.