As retail video card prices drop to more normal prices after 18 months of cryptocurrency-fueled madness, AMD and its partners are quickly faced with a new concern: AMD video card prices are falling. also a lot. As Ethereum’s mining profitability plummeted, so did the price of video cards, especially the higher-end cards in the high-end AMD product stack. As a result, the company is making a quick effort to raise video card prices by reclaiming game packages with a new Raise The Game campaign.
Proven and true tool to increase the value of video cards in slower times, game packages are a preferred tactic of video card manufacturers to improve the value of their product, which allows them to improve their competitiveness or value for the consumer without changing the hardware itself. . With the commercial value of a new AAA PC game costing $ 60, and video card makers paying much less than through bulk shopping and in-kind advertising, video game packages are a relatively inexpensive way to increase the value of a product or otherwise a more painful price cut. And while gaming packages are a common accessory in more normal times, there has been no need for them in the last year as video cards have sold out quickly with no extra help.
Ethereum Mining Profit in the Last 36 Months (BitInfoCharts.com)
But as normalcy returns to the video card market and demand for new miners ’cards has virtually dried up (Ethereum’s mining profitability has now returned to pre-2021 levels), video card sales have dropped significantly. And so do their prices: in the last 2 days alone, Newegg’s cheapest Radeon RX 6900 XT has dropped from $ 949 to $ 849, which is now about $ 150 below AMD’s original MSRP.
|AMD Radeon RX 6000 Series product stack|
|MSRP||Lowest retail price
|RX 6950 XT||$ 1099||$ 1099|
|RX 6900 XT||$ 999||$ 849|
|RX 6800 XT||$ 649||$ 799|
|RX 6800||$ 579||$ 759|
|RX 6750 XT||$ 549||$ 549|
|RX 6700 XT||$ 479||$ 484|
|RX 6650 XT||$ 399||$ 399|
|$ 379||$ 399|
|RX 6600||$ 329||$ 335|
|RX 6500 XT||$ 199||$ 199|
|RX 6400||$ 159||$ 169|
And while lower prices are a boon for consumers, they are potentially a real problem for AMD and its partners. Ultimately, prices are down but manufacturing costs have gone up. Since the Radeon RX 6000 series was launched in late 2020, TSMC has raised wafer prices by 7 nm at least once, shipping costs have skyrocketed, component prices remain high due to ongoing shortages there and inflation in the US US since early 2021 is growing. at 10%. So low video card prices not only threaten the profit margins for AMD and its board partners, but if left unchecked, they risk putting their manufacturing underwater.
The long and short of issues is that as a result, AMD is bringing video game packages to boost the value of its video cards and prevent further price cuts. And while the first video game package with video cards in almost a year would be news in itself, the speed at which AMD is assembling its latest package adds a new twist to the matter. The rapid decline in the prices of cryptocurrencies and video cards means that AMD is taking the unprecedented step of launching the new video card package program before it is fully ready. In short, AMD has not yet fully figured out what games they are giving away, nor has it even developed the promotional material for the campaign.
Taking things from the top, AMD’s new / upcoming gaming package is a new round of its Raise The Game campaign, which has been AMD’s slogan for video card gaming packages in recent years. The campaign began on Tuesday coinciding with the launch of the new Radeon RX 6×50 XT cards, and is being extended to the entire RX 6000 series product line, from the $ 170 RX 6400 to the new RX 6950 XT. As a result, all of AMD’s current generation video cards now come with a coupon code that can be exchanged for games once the campaign is launched.
But, as mentioned above, AMD has not fully determined which games are giving away in this promotion, nor which games will come with which cards. So far the company has confirmed that the next Row of the Saint game (will count on August 23rd) will be part of the campaign, as will the next one Sniper Elite 5 (May 26)th). And while AMD does not state whether one or both games will come with a particular video card, it is very interesting to note that the official terms and conditions of the program state that the “minimum ARV of the offer is $ 60.00 USD”, which means that AMD will give away at least $ 60 in games even for its low-end cards, such as the RX 6500 XT and RX 6400. $ 60, meanwhile, is enough to cover an AAA game, though that doesn’t stop AMD from follow. grouping several cheaper games.
|AMD 2022 “Raise the Game” package|
|Radeon RX 6400||
Sets of at least $ 60 (ARV)
Including (but not guaranteed for any level):
|Radeon RX 6500 XT|
|Radeon RX 6600|
|Radeon RX 6600 XT|
|Radeon RX 6650 XT|
|Radeon RX 6700 XT|
|Radeon RX 6750 XT|
|Radeon RX 6800|
|Radeon RX 6800 XT|
|Radeon RX 6900 XT|
|Radeon RX 6950 XT|
Finally, at this time AMD does not indicate when the new Raise the Game package will be formally released. Being generous, there are many chances that they will not know each other. What is known, at least, is that the current campaign will end in three months, on August 13thth. Which, if anything similar to previous game package offerings, is likely to extend if video card prices still need support.
Needless to say, AMD’s new gaming package effort is unprecedented. Neither AMD nor NVIDIA have previously released a game package without explicitly and meticulously revealing which games come with which products. Which, in turn, underscores how strange the current video card market is coming to be and how quickly AMD needs to act to boost video card prices amid a rapid decline in cryptocurrency prices. And to editorialize for just a moment, while we have no problem with video card companies using game packages as an added value to their video cards, it’s a big request from the gaming community right now to participate blindly in this program. Which may well undermine its effectiveness in boosting video card prices, at least until AMD fully launches the campaign and details the games included.
In any case, as the madness of the last 18 months has come to an end and video cards abound again, it is clear that strange times have not come to an end. As always, we will once again have AMD completely launch the new Raise The Game package.