Tech

As Hardware Begins to Hit a Wall, Computer Parts Start to Plummet in Value

Well guys, the days of buying terrible computer parts just to stay within your budget are past us. Instead of buying a 1050 to GPU to stay within budget, we can now purchase 1060s for the same price. The crypto market is taking a hit, and that might bother some miners and crypto enthusiasts out there; however, you won’t see any computer builders complaining. For us, this is a dream come true.

For the last five months, prices for CPUs, motherboards, CPU coolers, cases, and power supplies have gone down dramatically. This is probably due to the lack of computer parts being bought today. Economically, what’s happening is businesses are feeling out their customers, trying to find that sweet spot of supply and demand in the market. This is a common occurrence in a free market, and it keeps the people involved in it happy as well. However, there is another explanation for what is happening, and why it continues to occur.

New Technology is Great, Right?

Hardware has hit a brick wall when it comes to new products. AMD came out with the new Zen+ architecture earlier this year, which prompted Intel to release their latest eighth-gen CPU series. Due to the unique AMD chip, motherboard producers had an opportunity to create a new CPU slot called the X470. As CPUs get more advanced and use more power, companies such as Corsair has released new generations of water coolers. Power supplies have had to work similarly to CPU coolers, trying to supplement more power-hungry computers with higher wattages.

In addition to all this, there are rumors that Nvidia may come out with the GeForce GTX 1180, a new series of graphics cards that will blow the competition out of the water.

All of these developments were expected to send the market skyrocketing, but instead, it worked oppositely. What it ended up doing is sending the market tumbling, and the reason is that there is no real incentive to buy the new tech. I’ll explain later in this article, but first, we have to focus on the price, which is the real question on everybody’s mind.

First of all, the new hardware was a little overpriced, with the second-gen Ryzen series ranging from $150-$250, Intel’s eighth-gen CPU models averaging $250, and motherboards equipped with the new chipsets costing over $120. CPU coolers, especially those in liquid form, have gone up in price by about $30. While there are new power supplies that can power your rig for years at 1200 Watts, they carry a hefty premium of about $50 over a 750 Watt version.

Is it Worth It?

For a lot of people, no. The seventh generation of processors, motherboards, and other parts served the consumer just fine. Nobody’s buying because they can get similar if not superior performance from components that are sometimes half the price.  That’s why a lot of the prices for newer products haven’t gone up or even stayed at their startout price; they have periodically decreased in price.

Price Drops!

All of this being said, the newer generation of computer parts have allowed for older parts to decrease in price. This is especially the case for video cards, which have gone down by the hundreds of dollars since the introduction of second or eighth-gen products.

While the fall of cryptocurrency prices are somewhat at fault here, the point still stands that the introduction of new things tends to decrease the cost of older things, even if those new things don’t sell.

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Categories: Tech

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