While the Titan X pulled through most benchmarks by a significant margin of at least 15 percent over the GTX 1080, there was at least a $500 price gap between the two cards that was not easily justified for those users not requiring framebuffers above 8GB for their display setups. This is likely one reason the company chose to discontinue its Geforce GTX 980 Ti in favor of the GTX 1080 last June. According to analyst Handel Jones, the cost of producing Nvidia’s 16-nanometer wafers in 2016 was relatively 19 percent cheaper than the cost of producing previous 28-nanometer wafers two years prior. It has now decided to cut the price of the GTX 1080 to $499 in an effort to prepare more PCs for content rich, VR-ready experiences with framerates more closely resembling the panel refresh rates of modern 4K and 5K displays.Īs many investors in the industry note, the biggest driver of gross profit margins is usually the competitiveness of products in the marketplace. As a result of the new flagship product launch, along with incoming competition from AMD in the form of a new 14-nanometer Vega RX series lineup, Nvidia has now decided that the best approach for attracting professional gamers is not one where the higher-priced product has more performance “weight” than cheaper alternatives, but rather one that adopts supply-side economics – that is, by lowering barriers to the purchase of more premium hardware options. Up until this week, that card sat right beneath Titan X Pascal at $1200, but has now been preempted by a new contender in town called the Geforce GTX 1080 Ti. In the case of Geforce Pascal, it has now managed to introduce a new flagship that not only surpasses the previous flagship’s performance in every category except for compute (check), but it has also lowered the price by nearly 60 percent.ĭuring the company’s Editors Day event in San Francisco in late February, press and industry representatives were given an inside look into some further architectural improvements and performance tweaks that the company was able to bring to its Geforce GTX 1080, which was previously priced between $599 and $699 depending on the model. Nvidia is one of those companies in Silicon Valley that always has one more trick up its sleeve prior to announcing a new roadmap for its consumer and enterprise product lines. The most advanced consumer GPU gets over a 40 percent price cut
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