Advanced Micro Devices, Inc. caught the entire GPU manufacturing industry off guard when the company announced price cuts of its Radeon 5700 GPU chips. The announcement comes before the official launch of the new GPU lineup.
Advanced Micro Devices, Inc. surprises the industry
The chip manufacturing company announced its next-gen Navi-based GPU cards last month- the Radeon RX 5700 and Radeon 5700 XT. While the features were good, the prices seemed relatively higher. It seemed that AMD will not be able to match the prices by Nvidia. Now, Advanced Micro Devices, Inc. has slashed the prices of its offering, making the chips more competitive in the market.
The Radeon 5700 XT, for instance, was previously listed at $450. Now, it will be available for $400. The Radeon 5700, which earlier cost $380, will now be available for only $350. The company will also lineup the Radeon RX 5700 XT 50th Anniversary Edition which will be available for $450 instead of $500. It is not clear as to what will happen to customers who have already preordered their cards. Since the price decline is significant, it is not known if the customers are provided with the new chips at a better price or if their previous orders are considered final.
Will the price slash be enough?
Advanced Micro Devices, Inc. and Nvidia have been locking horns as two of the most popular names in the chip manufacturing businesses. The company seems more intent on seeming competitive now since Nvidia announced that it will be launching “Super” versions of its popular GeForce RTX graphics cards soon. The new cards will come with slightly improved performance, which could make AMD’s chips look older. AMD apparently had no other choice than to lower their prices.
It is likely that Nvidia will cut the prices of its older, non-Super cards as well. As the chipmaker isn’t asking for extra money for the Super version of the Nvidia RTX 2070 chip, that is in direct competition with the AMD Radeon 5700 XT. Retailers may want to stock up on the Super version of the RTX 2070, especially because it is available for the same price as the previous chip.
The Nvidia RTX 2060 Super will cost $400, up from $350 for the non-Super RTX 2060. This could give Advanced Micro Devices, Inc. some wiggle room as it the chip will be on a more even footing at $350 for the AMD Radeon 5700.
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