Nvidia, AMD accused of conspiracy to keep graphics pricing high

[CKXP]

It's the Inquirer, but hey.....still interesting.

http://www.theinquirer.net/default.aspx?article=36258

The allegation is the defendants and co-conspirators "have engaged in a contract combination, trust or conspiracy, the effect of which was to raise the prices at which they sold graphics processing units and cards to artificially inflated levels."

Executives of the company are also alleged to have had meetings and conversations to discuss pricing of graphics processing units and cards in the US.

Further, there are allegations that the defendants concealed this behaviour, which would constitute a cartel, if a judge or the DoJ found against them.

 

[Atty]

Inquirer...yeah....

 

[evolucion8]

I think is true, I saw it also on the Dailytech page, if that becomes a reality, it should be good for us in High End Card Pricing, which is injustified high today.

 

[Zstream]

Originally posted by: evolucion8
I think is true, I saw it also on the Dailytech page, if that becomes a reality, it should be good for us in High End Card Pricing, which is injustified high today.

Considering that a Xbox 360 is better then the 1900XTX and still cost a lot less.

 

[flashbacck]

Originally posted by: Zstream

Originally posted by: evolucion8
I think is true, I saw it also on the Dailytech page, if that becomes a reality, it should be good for us in High End Card Pricing, which is injustified high today.

Considering that a Xbox 360 is better then the 1900XTX and still cost a lot less.

that's because microsoft takes the loss.

 

[TanisHalfElven]

why do ppl have so much problem with gfx prices. (no i am not rich. i can't even find 150 bucks to upgrade a 7900gs or 7600gt. )
you ppl happily pay 1000s for processors and nobody accuses amd and intell of conspiracy. a $600 8800gtx cost more to make than the 1000+ quad core kentfield.

 

[Woofmeister]

This sounds awfully premature to me since DOJ subpoenas just went out. Also, unless you purchased directly from Nvidia or AIT, I doubt that you have a claim.

 

[Matt2]

It would be awesome to see a price cap of like $450 or even $500 for high end products.

Although I think we'll just see half-assed video cards at that point. PLus a reduction in margins for either company would probably mean a lot of programmers get canned and drivers will suck even more than they already do.

 

[cryptonomicon]

I know its the enquirer... but haven't they been RIGHT about a lot of stuff too?

 

[rise]

Originally posted by: cryptonomicon
I know its the enquirer... but haven't they been RIGHT about a lot of stuff too?

whats there not to believe? the DOJ started their investigation last week or so, this is just lawyers jumping on the cash-wagon. they won't win anyway, i don't see how the DOJ will be able to prove any price-fixing.

 

[Matt2]

I dont think the DOJ will actually prove it, but I think that they will make life tough on Nvidia and AMD.

Next up for the DOJ: OIL COMPANIES.

I still dont understand how Exxon/Mobil can make 11 billion dollars in a quarter and still charge me $2.50 a gallon for regular gas.

 

[Pugnate]

This is so stupid. Damn I hope this doesn't come to pass, or we will STOP seeing innovation in the video card market. Damnit.

 

[fire400]

if the video cards aren't expensive, then the new highend stuff doesn't look as appealing to me, personally.

lol

 

[Cookie Monster]

Shoudnt it be AMD and especially Intel for keeping CPU prices insanely high?

 

[jim1976]

Originally posted by: fire400
if the video cards aren't expensive, then the new highend stuff doesn't look as appealing to me, personally.

lol

You 're sick

 

[Pugnate]

Only the ultra ultra high end is insanely high. You can get a very very good card for $300.

 

[postmortemIA]

This simply claims that market movement itself would create cheaper prices as a result of supply and demand. The cartel artificially kept prices on different level.

IT is true because prices for each segment (midrange, high-end) haven't changed much in last few years.

 

[imported_RedStar]

"IT is true because prices for each segment (midrange, high-end) haven't changed much in last few years"

maybe true ..except when you consider the high range chips of last year become the mid range leaders of today...and realise just how fast prices do drop.

 

[aka1nas]

Originally posted by: postmortemIA
This simply claims that market movement itself would create cheaper prices as a result of supply and demand. The cartel artificially kept prices on different level.

IT is true because prices for each segment (midrange, high-end) haven't changed much in last few years.

Prices have gone up mostly due to component prices. As both Nvidia and ATI have third parties selling the actual cards, I doubt that this is what the DOJ probe is investigating. It's far far more likely it has to do with Crossfire/SLI and platform lockin.