GPU prices are coming down, finally – gamers rejoice, but there’s more to come

• GPU prices have come down significantly when compared to last year.
• The price reduction is due to increased production capacity and the cryptocurrency crash.
• Asus has announced a reduction of up to 25% in the manufacturer’s suggested retail price of its graphics cards.

GPU prices are finally coming down after being stuck in an upward trajectory for the past year or so. According to prices on various Indian retailers, and more widely, around the world, GPU prices have started falling when compared to the past few weeks.

And there is still more to come – prices of some popular graphics cards are still over 25% more than the maximum retail prices set by the manufacturers.

Lending further credence to this observation is that Asus has announced a reduction of up to 25% in the manufacturer’s suggested retail price (MSRP) of its graphics cards, after the US government lifted a 25% tariff on graphics cards imported from China, suggesting that we could be looking at a worldwide decline in GPU prices soon.

Source: Prime ABGB, Cost to Cost, MD Computers

Another significant reason for reduction in graphics card prices is that the lockdown measures are being eased up across the globe, removing the supply chain issues and bringing supply chain costs down.

The issues being faced by the cryptocurrency market have also contributed to the reduction of GPU prices as decreasing profits have made it less attractive for crypto miners to invest in purchasing graphics cards.

As per a report by Tom’s Hardware, Ajinomoto Build-up Film (ABF) substrate, which has been facing shortages since 2020 have finally started to ease up. The ABF substrate shortage is expected to recede after mid-2022, helping boost the production of graphics cards. One of the major reasons for this is that manufacturers have Unimicron and NanYa are building additional factories to meet the increased demand.

The prices of graphics cards are expected to further come down in the coming months. So, if you have been waiting to get your hands on a GPU, you just need to wait for some more time.

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