GRAPHICS CARD COMPANIES are predicting a slump in shipments that could result in the price drop we've all been waiting for.
Taiwan-based GPU manufacturers, such as MSI, TUL and Gigabyte, are suggesting it shipments could fall as much as 40 per cent month-on-month as a result of a drop in those buying GPUs for cryptocurrency mining.
A sudden drop in demand has caught retailers and wholesalers on the hop with many requesting a freeze on shipments or even cancelling altogether.
The main reason cited by Digitimes sources is that with dedicated Ethereum mining machines from Chinese firm Bitman due in Q3, it's better to hold on for now, for a bigger return later.
As such, the price of cryptocurrencies including Bitcoin and Ethereum has been dropping since the start of the year but consequentially it is expected that it will recover in Q3-4.
Market forces dictate that the next stage will be discounts - with some experts predicting 20-25 per cent drop on GPU chips is inevitable. After all - in a years time, these models will be obsolete.
It's all a bit of a juxtaposition from last year when most GPU manufacturers were able to clear their inventories and see record profits, as we all went a bit doolally for something we didn't understand properly.
Nvidia was rumoured to be launching its own Crypto GPU called ‘Turing' at its annual shindig this year, but the company has re-emphasised that it doesn't see mining as part of its strategy - good news for its smaller rivals.
The company, also Taiwan-based, has said that it doesn't like the fact that cryptomining is meaning that GPUs are in shorter supply and therefore gamers are being squeezed out of purchases as prices are forced up.
Good news, then as it looks like natural checks and balances are at work, (for a change). µ
Though it's not exactly an even playing field
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