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-   -   NVIDIA could rule if they really wanted to (http://www.nvnews.net/vbulletin/showthread.php?t=433)

Vid_craze 08-05-02 12:37 PM

nVidia could rule if they really wanted to.
Wll please understand I have tons of info for nVidia team members if they want them.

See I feel if their new GPU will be as powerful as they say it will be then a Movie type of name for their new GPU card might be a good idea.

Ok what I suggest nVidia do is basicly this. Get a working modle of their card that will out perfore the ATI model. Makeing it a slower than max is ok for release. Then sell it for as little as they can and make little profite per card or chip as they can. Hopeing this will sell less than the 399.99 than the ATI card will. After they have gotten some profite back from their first line then they have demo boths set up all over in Best Buy or some other US based store. EB wouold also bea selection but kinda small. Have a demo on how an end use could do CGI and how it would look. Then release a mid range card in the new year slightly more profite or if the first gen is not selling good release the next gen product at the same lowered price. Tring to get small profit per card but selling more cards to get a bigger profit. One it has gotten excpted come out with the fastest bit for the card fastest ram and core settings. This will keep the bar riseing and have something people could upgrade with some online retailers like evga or such, I am sure if there is little mark-up then the cars would still return a bigger profite.

Also most video cards lower later after they have been released. But if nVidia plays their cards right and tells them trade a compeitor's card and we will see it to you for x price. For what would normaly be a small profit and then later removeing the deal and not lowering the cards in price.

Another idiea is to release the card at a lower price for the first month then people might opt to get card quicker than normal becuase it would be more expencive the secound month. Store could issue rain check for when cards are not in stock and or pre-orders so custoers could get it at the lower price. What ever you can to get a larg number of cards sold at the begining. Later releasing the next line of cards and have retailers do an exchange and the card they are exchangeing would be the first gen card that willl only go up in price that customer would repurchase at a higher price tag. So the cards would be lower in price the first month of release. I think it would incouriage better sales open release.

Ok theory and how it works to clearify myself.

I will call the card Pantera 1 and so on.

Ok Pantera 1 sells for 249.99 on dabeu first month
total destination cost would be 215. Like the Ti 4200 but came out first.

Next month after the Pantera 1 rases it's price to 289.99 or so the Pantera 2 comes out at 299.95 total destination cost would be 265. People that bought the Pentera 1 could upgrade to the Pantera 2 for 50. Must have the origain stuff included and the card has to be in fair condition. Evga could resell these as long as they pass the test that everythign is good on them. They still will get 30 dollars profit on them after purchasing them back.

Next gen Pantera 3 comes out the very next month for 399.99. Total destionation cost being 355. Price of Pantera 2 Rases to 349.99 and people that bought the Pantera 2 can get it upgraded for 100. Still giveing the retailer 50 dollars profit. Pantera 1 ownder only get upgrade the frist month of release. and so goes the Pantera 1 to Pantera 2 cards. Now retailers could change this but later the prices will drop and would not work to well. Plus people that have the first gen card would have used it a little much more than most.

After the 399.99 release price it would then go upto 449 or 499 depending on costs that are involved. Market would then have all the cards at the price point they wanted and alot of people would have nVidia cards the Pantera line. Most saveing 20 to 100 dollars.

What do you guies thing a good idea or dumb idea. Hey I don't mind there are flaws in everything just though I would share an idea with everyone.

I know don't have to tell me I am a dreamer.

nutball 08-05-02 02:28 PM

Hummm. So what you're saying is they should create a ****-kicking card and sell it at almost zero profit. In other words as cheap as possible. So you can afford it?

Funny how everybody wants that, isn't it?

The world, for next to nothing.

Like if Ford or General Motors sold cars for $99. They'd sell loads! For about six months, until the money ran out.

Face it, if NV30 cards are only as good as R300, they'll cost $399, same as R300. If they're better they'll cost more. If it's a lot better it'll cost a lot more. Especially if they're having yield problems with 0.13u or 500MHz DDR-2 memory is rare like hens teeth.

Doesn't matter if they've lost the performance crown at this moment (and on the basis of cards on the shelves right now they haven't). The performance lead (or otherwise) of NV30 over the market competitors will determine the price. Because some people are willing to pay for the bragging rights...

Just my 0.02.

pelly 08-05-02 03:10 PM


Wll please understand I have tons of info for nVidia team members if they want them.

saturnotaku 08-05-02 03:41 PM


I think he means to say that he has "information" on how nVidia's engineers and marketing people should do their job so they might sell their cards at next to no profit so he might be able to afford one.

Sorry, pal, not gonna happen. nVidia's going to sell them at the price they deem fit and you know what? People will eat them up, especially if the NV30 turns out whallup the R300.

As much as we'd like companies to charge what we would like, that ain't how it works in the business world. It doesn't take an MBA to figure that out.

Vid_craze 08-05-02 04:35 PM

Well what I was tring to say haveing a lower entry price for a month. People or at least I know people that just just jump out and get video cards when they come out becuase they are waiting for them to drop in price.

The old supply and demand type of escapade. If you think about it is there something better than supply and demaind. Tring to get around supply and demaind is hard but is it possible?

Well just a though is all. Well see ya.

r2d2d3d4d5 08-05-02 06:38 PM

Some how I don't think demand will be a problem.....

StealthHawk 08-05-02 08:00 PM

and even if they have a lower price at introduction people will still wait for prices to drop :rolleyes:

i don't believe anybody would buy the card after prices went up, they would wait until prices go back down. that is certainly the way that most consumers shop. it would also be impossible for nvidia to control prices in under this scheme. unless they raised the prices that the boards cost for the resellers. i don't think retailers would be happy about that. it is more typical to see price wars where prices are lowered, it never happens where prices raise, unless the supply is extremely limited.

saturnotaku 08-05-02 10:09 PM


Originally posted by StealthHawk
it never happens where prices raise, unless the supply is extremely limited.
This is a scenario far more common in the automobile industry - take the Honda S2000 as an example. Initial quantities for this car were so small that dealers could often get more than $5000 over the sticker price for one. Of course, we're talking about a $30,000 automobile and not a $400 video card. A price war with prices going up will never happen in the technology industry because it would be stupid. Why limit quantities of an item so the price will go up when you can make even more money by having your prices stay level (and go lower) by keeping with your same manufacturing processes?

ChrisW 08-06-02 12:40 AM

Man, you guys just don't have a clue do you??? NVidia does not make graphics cards. They sell the chips to other manufacturers who actually make the cards. Are you saying all the card manufacturers are going to give away these cards? They are making cards for one reason only...to make a profit. They will charge as much money for the card that they think they can get!

StealthHawk 08-06-02 01:06 AM

nvidia sets an MSRP at manufacturers generally fall in line with it.

don't forget that the market is not dominated by nvidia. ATI would be sure to capitalize on nvidia RAISING prices...by staying with their own lower price, or by lowering their already lower price. if a nvidia card suddenly rockets in price by $50-100 do you think people will still buy it over ATI? i know i wouldn't. i would never buy a product from a company that uses underhanded tactics like that(raising MSRP). i think many people would agree with me.

edit: nvidia tried selling the gf3 for $500, but when that price was announced, what happened? please don't insult myself and others and tell us that we "don't get it."

edit#2: maybe someone should tell you that you don't always incur the highest profit by setting the highest price. how many people are going to buy a $400 card every 6 months when games are lagging farther and farther behind? true, the R9700 is the first card where you can basically max out FSAA and AF at super high resolutions and get away with it, but most people don't use those options nor those high resolutions. what i'm getting at is, unless people need extra power, they aren't going to upgrade unless the price is right.

nutball 08-06-02 02:08 AM

StealthHawk: I half agree with you, higher prices don't always mean higher overall profits, but on the other hand there is the "Rolls Royce" factor. Some people will pay stupid amounts of money every 6 months to stay 2 years ahead of games engines! :eek:

But I really think that the pricing strategy will depend on by how much (or not) NV30 spanks R300. If it really lays the smack down then the price will undoubtedly be higher.

Of course they can always play the 4200/4400/4600 trick, and have different cards with different clock speeds and different prices. This will make them both price competitive whilst also allowing them to fleece the gotta-have-the-fastest crowd for some free dollars.

ChrisW: If nVidia are selling NV30 chips to the card manufacturers for $100 each that sets a lower limit for the price of a card, doesn't it? So at least some of the final price is in the gift of nVidia.

ChrisW 08-06-02 02:29 AM

Obviously you guys still don't get it. It was the original assumption that nVidia was making these cards and therefore could make and sell the card for little to no profit. Or was it not?

Secondly, if nVidia set the MSRP of a board to be so low that the card manufacturers could not make a profit, how many of them would product nVidia boards? They would find another chipset to use on their boards. Face it, these manufacturers are not doing this for nothing! If ASUS does not make enough profit selling nVidia cards, believe me the they will drop nVidia fast.

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