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NVIDIA CEO says they have made too many graphics cards. And that’s why they’re going to lower prices

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Yesterday, nvidia announced its financial results for the second fiscal quarter of the year, leaving good news for gamers around the world who have been waiting for months (years?) to be able to acquire a modern graphics card at a price “of those of before”.

That is, not given away, but not above the recommended price. That, which did not seem like a feasible dream recently, is getting closer and closer due to the market situation and the words of the ceo of Nvidia that The Verge has collected

As for the former, Intel’s chip sales are plummeting, and Macs aren’t doing well either. It is not a thing of the last month, in 2022 there is a general disaster and consultants like Gartner warn it.

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As for the latter, Jensen Huang, the CEO of Nvidia, says that have “encountered excess inventory” because of how the market was working up to now. And that has consequences, as he announces: “Our strategy is to sell well below the current direct sales levels in the market to give the channel the opportunity to correct. We will do it for a couple of quarters or so.”

Nvidia is “off the charts”, but its current numbers are still well above the COVID-19 period

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Huang has mentioned that direct sales of GeForce GPUs are still strong, but that “it’s off the charts.” And no, he is not referring to the hard stage of the pandemic or the highest fever of cryptocurrency mining, but to the beginning of the year, a stage that he defines as really high in sales.

Huang says direct sales of graphics cards, overall, are up 70% since before the pandemic. But he assumes that somewhat skinnier cows are coming and it is time to reduce sales, because it is not only a drop in demand, but a macroeconomic condition that “drastically worsened.”

Because of how the euro is, this price drop does not have to reach our market, seeing what has happened with the PS5 or the Mac

Until then, he says, prices will have to come down to adjust ahead of the next generation of graphics card launches. To do this, the CEO says that they have reached agreements with his partners to better position prices in the market. “Our strategy is to sell well below current direct sales levels in the market.”

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That a CEO says this does not mean that overnight we are going to find huge bargains and discounts on an RTX 3070 or RTX 3090 Ti, but it does mean that there will be prices even below what they have established at launchsomething that, in general, has not happened in recent years.

70% more sales than before 2020 is not a figure that should cause any company to panic. Simply, the nightmare is ending, and that brings lower sales, because the production line was operating at maximum. The drop in prices, yes, does not have to reach all markets. In Europe, for example, Apple has raised prices for the MacBook Air M1 (without upgrading its components). And today, Sony has announced a price increase for PlayStation 5 for ours and other markets, but not for the United States.

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