This makes me feel all silly inside. This is because I think of my computer as an entire unit. You could say that my computer is a unit. total unit It’s jammed into my desk, so it looks like a tank on wheels. However, to me it’s one device with many parts to make it complete.
Nvidia however believes that GeForce is “essentially a gaming console within your computer.” Jen-Hsun Huang, CEO, sees it that way.
While that’s fine in part, Nvidia views its own product as the most crucial piece of the gaming computer puzzle. It also believes it has the largest impact on how smooth the gaming experience is going to be. Huang talking about Nvidia’s target for the GeForce graphic card’s average price to be equal to a current-gen gaming console is where I feel most uncomfortable.
“We’ve always believed that the ASP of GeForce should drift towards the average selling price of a game console,” says Huang in the recent Q2 2023 earnings call (opens new tab). “And so it should roughly be $500 at this point.”
It’s not unreasonable to expect people to pay this much for an Xbox, but they will probably do the same for a single graphic card to go with their PC. I guess that’s the theory, and honestly, he’s probably right—if the past couple of years have taught us anything it’s that people are prepared to pay a ridiculous amount of money for a GPU if they really want it.
However, if you look at the main, most profitable graphics cards, I don’t want them priced at a level that makes them less competitive with Sony’s or Microsoft’s game boxes. However, pricing is trending in this direction. Fingers crossed that Nvidia will announce the RTX40-series GPUs. (opens in new window) Some cards with a value of $300 will offer more benefits than the previous generation.
Jen-Hsun will be fair. Jen-Hsun asked Jen-Hsun if the average selling price (ASP), across Nvidia GeForce GT GPU stacks would remain the same or decrease “because there is no crypto tightening dynamic.”
Huang replied, “I would argue that without crypto dynamic,” Huang said. “The mix would fall.” But, the ASP trend long term is shifting up.”
He then says that Nvidia has always believed its ASP should be at the same level of a complete games console. Sony has just announced a rise in the price of its PlayStation 5 consoles, despite the fact that they are all rising in value. (opens new tab)Jen-Hsun is only going to be focusing his attention on an ever increasing target price.
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