AMD and NVIDIA May Eliminate Budget GPUs Due to Memory Shortages, Limiting Options for Entry-Level Gamers

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A concerning development for PC gamers has emerged, suggesting that major GPU manufacturers may suspend the production of mid-to-high-end gaming graphics cards due to ongoing memory shortages.

AMD and NVIDIA Could Cease Budget GPU Production Amid Memory Shortages

Recent reports indicate that the shortages in DRAM are poised to have a broader impact on gaming than initially anticipated. According to a report by the Korean outlet Hankyung, AMD and NVIDIA may be considering the discontinuation of budget-friendly GPUs. This decision stems from significant increases in the cost of Bill of Materials (BOM) driven by soaring GDDR module prices. While the report does not specify which models may be impacted, speculation suggests that NVIDIA’s ’50-class’ and ’60-class’ graphics cards could be the most affected.

Over the past few weeks, memory prices have escalated dramatically, leaving manufacturers scrambling to adapt. Companies are currently seeing a surge in ‘panic buying’ as a considerable portion of DRAM production is being diverted to accommodate the global expansion of data centers. In light of these developments, it’s expected that manufacturers will prioritize sectors that promise higher returns on investment, leading to a noticeable reduction in consumer GPU production, particularly for models that operate on slim profit margins.

NVIDIA GPU Production — Image Credits: NVIDIA

The current state of the industry, marred by memory shortages, has considerably impacted component pricing, with RAM modules facing steep increases. This scenario has raised concerns that GPU prices might also experience significant hikes in the coming weeks, particularly among mainstream models. Companies like ASUS have already voiced apprehensions regarding potential price upticks for consumer electronics should DRAM shortages continue, and the situation appears to be deteriorating.

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