Nvidia’s Big Mistake (And Welcome Back!)

Hello, guys. After a long break from work, I have finally returned, and I have some information to share that you might find interesting. So, without further ado, let’s get started.

First things first, I have to get it out there that I have finally finished my PC build. It took about four months to plan, research, and save up the money, but I finally did it. The specs are pretty amazing if I do say so myself, and I would like to share it with you guys.

  • CPU: Ryzen 5 2600X 6-Core, 12 Thread Processor
  • CPU Cooler: Cooler Master MasterLiquid 240mm Liquid CPU Cooler
  • Motherboard: MSI X470 Gaming Plus ATX AM4 Motherboard
  • Video Card: EVGA GeForce 1080 8GB FTW2 iCX
  • RAM: G.Skill Trident Z RBG 16GB (2 x 8) DDR4-3000
  • Storage: ADATA 256GB M.2 PCIe
  • Case: Corsair SPEC-OMEGA (Red and Black)

 

So that’s that. All in all, the entire computer cost me about $1400, not including peripherals. The reason I didn’t include them here is because my family was able to help me out with that for the time being. Also, I already have some peripherals to begin with, so I don’t want to say that I spent more than I did. I plan to build the computer this weekend when all the parts are scheduled to come in, and I feel that it will be a fun experience. I haven’t bought the CPU cooler yet, but I will in a week. For now, I will use the included Wraith Spire to cool my silicon chip. If you want to ask any questions about my build and why I did it this way, ask away in the comment section and I will do my best to answer.

Nvidia made a huge mistake

Now, to more important matters, Nvidia made a big mistake earlier this month. Their mistake was that they way overshot the mining demand of GPUs. What happened was Nvidia sent a crapload of GPUs over to different custom card companies, like ASUS and MSI. When these companies ended up cancelling their orders with Nvidia because of low GPU demand, Nvidia had to take in a whopping 300,000 GPUs back and place them into their inventory. If you notice, Founders Edition cards are for sale on Nvidia’s website, a feat that seems to come around every thousand years (but seriously, it’s like, “you make graphics cards too, right?”).

Now let’s elaborate on what has happened here, and what Nvidia’s fault was. Nvidia overestimated demand, and paid a hefty price for it, because they likely already spent the money that they got from ASUS, MSI, Gigabyte, etc., before they found out that all these companies wanted a refund. It is very likely that Nvidia took a huge hit during all this, and GPU prices might also see a dip in the next month or two due to extremely low demand.

Another important point that needs to be pointed out it that Nvidia is in the middle of researching for its next flagship GPU. Recent reports say that Nvidia plans to release the GTX 1180 during the third quarter of this year. Everyone knows that research required money, and right now, every last dollar is essential for Nvidia if they want to stay ahead of Team Red in the graphics game. Also, Nvidia needs sponsoring to promote their new card, meaning even more money needs to be spent. All in all, and I don’t mean to be cliché, but money is essential if Nvidia wants to stick to plan A, which is to release the card sometime this year.

Another question that rises is, “Is this good for gamers?” (really, that’s the only question that matters). The answer is yes in this sense, not simply because Nvidia received 300,000 of their own graphics cards back, but because they overestimated the mining demand of GPUs. This is evidence that the mining craze is hopefully seeing the last of its days, as profitability is plummeting and most cryptocurrencies are all mined out. It’s all economics at this point: when supply becomes larger than demand, prices go down. In this case, supply largely outweighs demand, and we should see the effects here shortly.

However, this could also be bad for gamers. Like I said earlier, now Nvidia has less money than they did before, meaning they can no longer allocate the resources they need to allocate in order to get their new products up and running. This means a longer development of the 1180, any new Quadro cards that may be waiting, and AI programs that are essential to the well-being of the company. The point is, Nvidia cut itself in this deal, and if gamers want the latest and greatest of computer technology, we should not be rooting for that. Yeah, we could just go Team Red and leave Nvidia for taking so long, but for right now, Nvidia is the best in the GPU game. AMD has no plans to release their new GPU architecture, Navi, for another year, so Nvidia will be king of video card production for a long time.

However, all these concerns about Nvidia cutting itself short of funds in their GPU dealings are a little far-fetched. After all, Nvidia is a multi-billion dollar company. They have more than enough greenbacks to make up for their terrible loss here. And it’s not like they aren’t still selling graphics cards; that’s kind of what they do.

The lesson to take away from all of this is to never overestimate something that could seriously damage your company if it goes bad, especially when it comes to multi-million dollar sales. While Nvidia suffered, the entire gaming community was able to learn that the mining craze is not at all what it once was, and it seeing the end of its days as a craze and more like a hobby. GPU prices will continue to drop, and we’ll just have to wait it out and see what they do, whether it be to stick to MSRP prices or permanently change MSRP to accommodate for a low-demand market.

We’ll see.

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