How is AMDs R&D budget? Also how big of combined R&D budget can the market volume pay for? And how low can a budget be before product quality is safrificed? I think we already got that answer. Its the same as as with CPUs.
What does this have to do with quality of AMD products? Comparing AMD's CPU division to AMD's GPU division? As usual, you are stretching reality. NV simply beat AMD to launch with 780 and 970/980 but AMD eventually responds with an up-to-date architecture, and with superior price/performance too.
I know most NV supporters here could care less about AMD products or price/performance in general but some of us have other hobbies to support and money to spend on other things in life instead of spending $200-250 more for 10% more performance each gen. As long as AMD keeps offering superior price/performance, I will keep buying their products, not because I am loyal to AMD or anything but because between downhill skiing, tennis, fitness training, travel and so on, I have limited funds and no interest in spending $200-300 for incremental gains that can only be noticed in benchmarks. I guess you could say gaming is FAR from my #1 hobby in life. If NV became AMD with superior price/performance, I would buy their cards in a heartbeat.
Do you need to be reminded what happened when 290X launched?
$550 290X > $650 780
Weeks later NV dropped prices of 780 to $499
1 month later $399 R9 290 ~ 780 $499.
Today after-market R9 290 >>> 780.
That's a history lesson for you before you write off AMD as you always do.
I wonder what the Q4 marketshare ended up like. It may have been as much as 80/20%.
Even if market share were to be 99% to 1%, what does that have anything to do with AMD's success or failure of R9 300 series? From an engineering point of view, those cards have been designed for 2-3 years regardless of market share. While it is true that NV's financial success will only help them with Pascal and Volta, for brand agnostic PC gamers, it's much worse for us if AMD could not make competing 14nm and 10nm products in the next 2-5 years.
I will never forget $650 280 vs. $299 4870 and $650 780/$1000 Titan vs. $400 290. NV has shown more than once if there is no competition, they will rape the market with ludicrous prices.
Great for them. Selling mid range cards for high-end price works out amazing. They could probably make a Titan SE based on GM204 and ask $1000 for it. Would sell like a hot cakes regardles.
And soon the gpu buying decision will be much simpler! And this forum will be like a ghost town.
If you are an NV employee/NV shareholder, it is amazing. If you are a consumer of graphics cards, it's not amazing at all. Why would I be extatic to see that NV is now making nearly 60% profit margins when it used to make 34-40%? Guess who is paying for that - We are - the consumers!
How do NV loyalists not understand that NV went from selling GTX460/560/560Ti at $220-250 to selling the same product in GTX670/680/970/980 for $330-550? Guess where those amazing profit margins are coming from? It's not out of thin air.
If NV was simply taking away market share from AMD, its net income would rise but margins would remain mostly unchanged (see Intel's historical margins vs. AMD). That is not what's happening. NV is taking market share from AMD and raising prices exponentially for each product line. And gamers cheer this! :sneaky:
NV's Gross Margins (Keep in mind NV's fiscal year runs about 1 year ahead of the actual year so 2011 Fiscal Year Annual report ends Jan, 201
0)
2009 = 34%
2010 = 35% (end of GTX200 generation)
2011 = 40% (Fermi half of Fermi GTX400 gen)
2012 = 51% (Fermi 2nd half GTX500 gen)
2013 = 52% (Kepler 1st gen GTX600 series)
2014 = 55% (Kepler 2nd gen GTX700 series)
2015 (this annual report) ~ 55% (Kepler + Maxwell)*
* Q4 2015 (actual Q4 2014) NV had 56.2% gross margins!!!
NV projects Gross margins to rise to
56.5% by Q1 2016 (actual Q1 2015)
Sources - 2011, 2012, 2013, 2014 Annual reports
http://investor.nvidia.com/annuals-proxies.cfm
and
https://www.google.com/finance?q=NASDAQ:NVDA&fstype=ii&ei=H5vcVLGWHZSTwQOv-IGQAw
Why as a consumer who pays for graphics cards with my $ should I be sooooooo happy that NV makes 56% gross margins on my purchase but AMD makes just 35%? NV is making 60% more money per each card sale but how much performance are they giving me in return? R9 290 costs $250-250 and 970 costs $330, R9 290X costs $260-300 and 980 costs $550.
You can equate NV's much higher gross margins with their overpriced cards. I don't see how in the world I am supposed to be cheering for a $550 mid-range 980 or possibly $700-800 GM200 when flagship cards from NV used to be $499-650, while mid-range ones $200-250. :thumbsdown: I guess I need to become an NV shareholder like everyone else on this forum seems to be who is happy with this development, or better look for a job that pays 50% more.
I really should facepalm myself as I wanted to invest into NV at $12-13 during their dip. After NV managed to sell the market $500 mid-range GM204, I should have seen this successful strategy repeating all over again with Maxwell but I thought no way would enthusiast for fall the same trap considering 980 was just 7-10% faster than a 780TI. Boy, I was sooooooo wrong.
I browsed some non-tech forums in Canada and US and I see gamers buying $200 GTX960 over $240-250 290 and in Canada a $260-280 CDN 960 over $300-350 R9 290 that is 45-50% faster. NV marketing FTW! The average consumer never used ATI/AMD and would still buy a NV card 40-50% slower with half the VRAM over an AMD product because they just think NV cards are better, all facts be damned.
You usually hear something like "I've been using NV for 5, 10 years. Are AMD cards any good?" or "I heard AMD drivers have been awful" - but the gamer never used AMD or used ATI 10 years ago.
Oh well, I hope I can enjoy my price/performance days for as long as they last due to strong competition between NV and AMD, because if NV remains alone, I can forget those days, unless NV is split up into 2 firms that start competing with each other.
As a long-time PC gamer, it's one of the saddest days in the PC industry for me when PC gamers pay $550 for 10% faster 980 over a $260 290X or double for 980 SLI over 290X CF. Such craziness would have never happened during the days of ATI vs. NV. In my honest opinion less than 50% of the desktop discrete GPU market are brand agnostic PC gamers today. I mean NV's current desktop line-up under $330 970 is simply awful for most PC gamers who have done 10 minutes of research. Too bad, ignorance is a bliss when marketing blinds your judgement.