GTX 680 4gb Review

[travy25]

Originally Posted by hostage67

1,000 x $400 = $4,000 (GTX 670)
1,000 x $600 = $6,000 (GTX 680)

doing the simple math that's $2,000 they are losing each week

Not so simple

[Urbanfox]

My guess is the 670's didn't pass getting binned.

680's are RARE, and all the sudden 670's are in stock everywhere?

[§k¥¥ |{£øúÐz]

Originally Posted by hostage67

1,000 x $400 = $4,000 (GTX 670)
1,000 x $600 = $6,000 (GTX 680)

your "simple" math is if you were to assume they sold an equal number of both models. you obviously skipped out on economics class lol. there are two main ways to make profit.

volume and profit margin.

A. Volume

Bob sells 1000 cards because he sells them for so cheap. He sells them for only $10 over cost. 1000 x $10 = $10,000.

B. Profit Margin

Frank only sells 100 cards because he sells them for so much. But because he sells them for so much, he's making $100 profit per card. 100 x $100 = $10,000.

But anyways, I'm saying nvidia probably knows they sell 5x more of the gtx470/570/670 cards than they do the gtx480/580/680 cards so they made sure to produce them with numbers proportionate to their previous year's sales. (they should be able to fairly accurately forecast the number of each type of card to make, and I'm sure they factor in (hence why I said WEIGHTED) profit margin for the different cards to maximize their profits.

i'm over it though. all this is only assuming they actually sell more of the mid range cards and assuming they're smart business people who use previous year's sales data to forecast a strategy for the best profit possible.

lets get this back on the rails. I CANT WAIT FOR MY 670 4gb. Finally will be able to play crysis 2 with max settings without running out of vram and going into slideshow mode.

[hostage67]

Originally Posted by §k¥¥ |{£øúÐz

your "simple" math is if you were to assume they sold an equal number of both models. you obviously skipped out on economics class lol. there are two main ways to make profit.

volume and profit margin.

A. Volume

Bob sells 1000 cards because he sells them for so cheap. He sells them for only $10 over cost. 1000 x $10 = $10,000.

B. Profit Margin

Frank only sells 100 cards because he sells them for so much. But because he sells them for so much, he's making $100 profit per card. 100 x $100 = $10,000.

But anyways, I'm saying nvidia probably knows they sell 5x more of the gtx470/570/670 cards than they do the gtx480/580/680 cards so they made sure to produce them with numbers proportionate to their previous year's sales. (they should be able to fairly accurately forecast the number of each type of card to make, and I'm sure they factor in (hence why I said WEIGHTED) profit margin for the different cards to maximize their profits.

i'm over it though. all this is only assuming they actually sell more of the mid range cards and assuming they're smart business people who use previous year's sales data to forecast a strategy for the best profit possible.

lets get this back on the rails. I CANT WAIT FOR MY 670 4gb. Finally will be able to play crysis 2 with max settings without running out of vram and going into slideshow mode.

You are still missing my point. You are correct that there are two ways to make a profit, volume and margin, but in this case volume isn't an option since they don't have the supply to meet the demand, which only leaves margin.

My point is that they can't produce enough cards to meet the 680 demand, so volume isn't even a consideration at this point. That leaves only the options of selling the cards as either 670's at $400, or 680's at $600. Clearly the larger profit margin would be the winner here from a business perspective.

My thoughts are following with what UrbanFox mentioned. I suspect all of the 670's simply didn't pass the binning process for 680's, that's why there is so much more supply of the 670's vs the 680's and their decision making process would then make sense. They didn't sell the boards as 680's because they couldn't.

But right now everyone is assuming that they can simply buy a 670 and overclock it a bit to keep up with the 680's, but if they didn't pass the binning standards for 680's then there will be a flaw in the plan to simply OC the 670 as it won't reach the same levels as the 680.

Your argument for volume is only applicable if they can produce more 680's than they can sell, which currently is not the case. On the other hand, creating an artificial shortage of the 680's will push more people to purchasing the 670's, and then possibly upgrading again in the near future. That seems like a bit of a gamble though causing the company to lose out on a guaranteed $200 additional profit per card, for a possible chance of upgrading in the near future.

Originally Posted by travy25

Not so simple

Ya, I should go back to math class so I learn how to carry the zero's, but you get the point

[cmdprompt]

Nvidia had a month of 680 production to stock up on "failed" 680 chips that had a single shader or processing unit that failed during "binning" or testing. The failed chip is then a candidate for a 670 card. There is nothing wrong with the remaining processing units & shaders, but the failed ones render it unusable for a 680 card... hence the stockpile of 670 chips. These chips should OC just fine too.