Nvidia is going to halt the Production of its high end GPUs. This is mainly because of the poor sales as saw the corporation. The production limit was already in place till the end of may. However, since the situation isn’t getting much better, Nvidia has decided to increase the date till June. The limit will most likely be adhered to their high end RTX 40 series cards.
Not just Nvidia GPUs
According to statistics, The total no of Desktop graphics card sold worldwide in the last quarter year were only 9 million. This is including all the tech giants like Nvidia and AMD. This is lowest recorded GPU sale in the last 20 years since 2005. The no. of notebook GPU sold are higher than desktop ones. However, the sales are still really low. A number of factors are responsible for this.
What’s the Reason?
The most important reason behind this is Cost. The most expensive GPUs made by Nvidia can go unto a 1K. For example, The Nvidia RTX GeForce 4090 costs a whopping $1499 USD. The substitute, AMD is not much affordable too. The problem is not seemingly getting better either. Since the release of the 20 series, the prices of these GPUs keep on increasing. The other problem is their aren’t many mid tier cards available. Nvidia always tries to present their best stuff. The problem is people cant afford their best stuff. A couple of years ago, people could buy their aptly prices $200 USD cards. If Nvidia weren’t offering it, AMD was. Now there is nothing in the market that is filling that space. This makes it even harder nowadays since the economy is not quite in a good state.
The other reason can attributed to COVID. During the pandemic, Most people were at home and decided to get a new rig to enjoy some games. This led to a boom in sales of Graphics cards. However, the pandemic is over but the companies still haven’t taken it into consideration. They overshot the production of the units and not their just piling up. This pile up is what Nvidia trying to stop.