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Nvidia: Average selling prices of graphics cards can grow further

Modern graphics cards are among the most expensive components of personal computers and due to their importance for gamers they can get even more expensive, believes Jen-Hsun Huang, chief executive officer of Nvidia.

Personal computers are becoming more and more popular among gamers because they offer high-quality graphics and support hundreds of popular games. As a result, gamers increase spending on computer components in a bid to further improve visual quality and performance of new titles. As a result, average selling prices (ASPs) of select computer components, including graphics cards, are increasing. According to the head of Nvidia, ASPs of graphics cards will continue to increase in the future.

“As the production value of games continue to grow, I think we are going to see our ASPs grow,” said Jen-Hsun Huang during a conference call with financial analysts and investors. “So I would say that the dynamics of thePC gaming industry is really quite healthy, both in more and more players playing and ASPs increasing because of production value.”

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Nvidia’s current-generation GeForce GTX graphics cards cost from $100 to $3000. What is important here is that a lot of gamers nowadays prefer graphics boards that cost $300 and higher. Just ten years ago such gamers typically spent around $200 on a graphics card. The fact that there are gamers who buy graphics cards for $1000 – $3000 is another reason why ASPs of graphics adapters increase.

The CEO of Nvidia believes that the number of PC gamers will also grow going forward.

“There are about 100 million GeForce gamers around the world, they are active gamers around the world,” said Mr. Huang. “Yet we know there are several hundred million gamers altogether and PC gaming is becoming more and more popular for the reasons that I have mentioned already and others. My sense is that we still have quite a bit of penetration to go. So, these are the dynamics that are helping us.”

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KitGuru Says: While it is clear that ASPs of mainstream GPUs are increasing, it will be interesting to see how high will actual prices of mainstream graphics adapters get in the coming years…

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