Thinking about upgrading your GPU? If you have your eye on an Nvidia or AMD version, you might want to put those plans on hold—these popular GPUs are undergoing a rapid price increase. So, what’s causing the price increase, and should you buy before it goes up anymore? Read on for some info from the team at our computer repair shop in Phoenix, AZ.
Why are prices going up?
Graphics DRAM, or the memory that graphics cards use to power their products, is increasing steadily. The DRAM is expected to increase about five percent each quarter, and of course, those costs are passed on to the consumer.
Another reason prices are going up is because consumers are switching from GDDR5 to GDDR6 memory, which means supply for the new memory is in high demand. Nvidia was the first to switch over, and AMD was not far behind. As the companies switch the cards over to the new memory type, they’re removing the old systems from their stock.
How Bitcoin is contributing to the problem
Cryptocurrency is also contributing to the price increase. Bitcoin miners can earn Bitcoin—which is currently hovering around $18,000 per coin—by completing “mining” tasks, like completing blocks of verified transactions (basically, auditing or verifying transactions) and finding solutions to complicated puzzles first. That allows them to earn the money without having to put down actual currency first. That way, gamers and/or Bitcoin miners can afford expensive GPUs. In turn, this has driven up the demand for the latest GPU technology.
It’s not just that Bitcoin gives its users buying power, either. Bitcoin itself requires miners to run complicated programs to verify transactions—which requires a lot of computer power, hence the need for some powerful GPUs.
Who else uses these GPUs?
In addition to Bitcoin and gaming PCs, consoles like the PlayStation 5 and Microsoft’s Xbox Series X also use GDDR6. Not only do companies like Nvidia and AMD need these GPUs for their consoles—which are wildly popular, especially during holiday seasons—but they also cut into the available supply for other consumers.
If you have your heart set on an Nvidia or AMD GPU, you may want to buy now. Prices are only expected to increase as the demand continues to rise. Since most gaming consoles are moving on to newer models, now is the time to switch. Finally, they simply cost more to produce, so companies charge more to ensure they make enough profit.
Whether you’re a Bitcoin miner or a serious gamer, it’s important to have the right tools for the job. The earlier you can buy your GPU, the more likely it is that you’ll save money and get the powerful system you need.
Of course, not every gamer needs a powerful GPU. If you’re just starting out or are looking to build your own custom PC, make sure to talk to the team at GeekForce.biz. We can help you decide what’s worth the cost, what isn’t and how to get what you need at the best price possible. Stop by our computer repair shop in Phoenix, AZ today!