The market for graphics cards has seen a massive surge in sales over the past few months, and it is no surprise. Graphics cards are brand-new, and consumers are excited to get their hands on them because they give gamers an unmatched gaming experience.
Also a Good Read: What Graphics Card Does My Laptop Have?
Because of this demand, scalpers have entered the graphics card market in hopes of making a profit. People will often purchase high-demand items as quickly as they come on the market, similar to the mad rush of Christmas sales when new toys are released.
Scalpers Could be Reason?
The price of a graphics card isn’t always due to a shortage. Because the chip shortage was so severe, many companies, including Nvidia, were struggling to keep up with demand. As a result, a small number of scalpers cornered the market and held it hostage.
Also A Good Read: 4 Graphic Card is Best For GTA 5?
In recent years, however, more retailers have sprung up, but prices have continued to increase.
The price of graphics cards has skyrocketed since mid-2017, and the price hikes have spread to entry-level models such as the AMD RX 570 and Nvidia GTX 1650.
Also A Good Read: Why Do Cores Matter For Gaming?
A major factor in the high prices of GPUs is demand. As a result of the chip shortage, people remained indoors while working, which impacted the supply of GPUs.
Because the demand for gaming and other computer hardware increased, many people turned to gaming as a way to relieve their boredom and frightened minds.
COVID-19 pandemic -Big Reason Why Graphics Card Prices Are Increased?
If you’re looking for a new GPU for your computer, you may be wondering why graphics card prices are so high for COVID-19 pandemic. First of all, this pandemic affected the global economy.
Not only was shipping and international passenger transport halted, but manufacturing factories were closed as well. As a result, demand for COVID-19 increased.
Also A Good Read: How Many Cores Do You Need For Gaming?
Unfortunately, due to the pandemic, the supply of COVID-19 was not increased and the shortage occurred.
In addition to the demand for a powerful GPU, the cost of the chips used in gaming is another reason for its high price.
The Biden Administration has not canceled the tariffs on Chinese computer chips, so graphics cards manufactured in China will remain expensive for quite some time to come.
Demand for cryptocurrency mining
Another factor in why GPUs are so expensive is the demand for cryptocurrency mining. This new industry requires a powerful computer to mine cryptocurrencies such as bitcoin and other currencies.
Despite the recent dip in cryptocurrency prices, many video cards are still priced too high. This is due to a 25% tariff placed on products imported from China.
Also A Good Read: How to Qualify For the Free Fire Partner Program
Major brands are forced to pass the cost onto consumers, driving up prices. In addition, this increased demand coincided with the rise in cryptocurrency prices.
In the end, this means that gamers are still stuck with expensive video cards, which are often unusable.
One reason why GPUs are so expensive is because of cryptocurrency mining. Despite a rise in cryptocurrency prices in recent years, prices have increased even more, and Nvidia’s RTX 3080 graphics card has sold for more than two thousand dollars.
Increased demand for gaming hardware
In addition to the traditional consoles, increasing interest in gaming hardware is also driving the global market. The pandemic-induced boredom has brought in both experienced and novice gamers. Moreover, it has also cancelled plans for traveling or a night out.
In fact, North America has surpassed Asia and the Pacific in the gaming hardware market. The shipments of gaming hardware increased by 26.9% in 2020. In the same year, the demand for gaming peripherals will also grow significantly.
The market for gaming hardware has risen considerably, as more residential gamers take up virtual reality games. Some of the top winners in the gaming hardware sector include Sony, Microsoft, SEGA Europe, Nvidia, PlayStation, and Logitech
The U.S. government is waiving tariffs on imported graphics cards from China until Dec. 31, 2020. This decision may lower graphics card prices in the short term, but if the current shortage of Chinese chips and massive demand for GPUs persist, the prices will remain high for some time.
Asus is one company that will be passing on the savings to consumers. This news will be welcome news for gamers. In the long run, the increased demand for graphics cards could drive prices down further.
I would like to introduce myself as Uttam, an Internet Marketing Expert and professional a blogger and founder of Ur Computer Technics. Also, I’m a passionate entrepreneur, SEO Specialist, and fitness freak.