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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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15 comments

  1. so we will see the GTX 750ti soon for 799$ on a -70% sale? Nice!

  2. Good luck.

  3. so what’s he’s saying is less “i think they’re going to increase” and more “we’re going to keep raising our prices, you can count on it”…….cool, thanks. my wallet needed another stab wound

  4. Prices go up, buying interest goes down.

  5. I think it’s going the other way around. Nvidia and AMD charge way too much for GPU’s it’s pushing gamers out of PC and into console gaming which is way cheaper. I’ve been making my PC for years now and price of GPU’s is getting out of hand really. It’s pushing my to consoles more everyday.

  6. This isn’t right. SO disappointed in Nvidia. Hello, AMD.

  7. This isn’t right. SO disappointed in Nvidia. Hello, AMD.

  8. This isn’t right. SO disappointed in Nvidia. Hello, AMD.

  9. This isn’t right. SO disappointed in Nvidia. Hello, AMD.

  10. I think people are getting the wrong end of this.
    He’s not saying prices are going up (thought they are steadily, but what isn’t??)

    He’s saying the amount of money that people will spend on a card is going up.
    People that would have got a mid range card 5 or 10 years ago are now saving more and getting a high end card instead.
    It’s also worth noting that most computer enthusiasts are growing older now. i.e. when i got into computing, i was 15 and poor, now i’m 24 and have a job.

  11. Console gaming is way cheaper? I doubt that.

    The system itself is cheaper, but the truth is that if you built a PC for the last gen, you probably just need to upgrade your graphics card. And even buying a graphic card that’s more expensive than a PS4 or an Xbox One, would be cheaper in the long term. The prices for PC games usually drop 1 to 3 months after the release date, and with the Steam sales you can spend less and buy more games than you could for a console (unless all the games you buy for PS4/XONE are indies).

    And all that without taking into account that the PC is useful for many other things than a console.

    Buying a new gen console for its exclusive games is fine and logic. Buying it because it’s cheaper than a PC is incorrect.

  12. Well no, what he’s saying that that because a few very stupid people are buying server-spec graphics cards for their gaming rigs, there’s a market for higher priced cards and that is likely to push prices even higher.
    Look, they even said it right here in the article: “The fact that there are gamers who buy graphics cards for $1000 – $3000
    is another reason why ASPs of graphics adapters increase.”.
    Age and job description is irrelevent, if you’re willingly spending that much money JUST on a graphics card that isn’t even suited to what you want it to do, then you deserve a slap upside the face.

  13. I see what you’re saying to be fair.
    People who buy a Nvidia Quadro or AMD FirePro for gaming is just stupid.

    Buying a Titan is overkill unless you’re trying to push 4K resolutions.
    And yes those people are driving the ASP higher.

    The $1000 + mark starts at the GTX780ti doesn’t it? That’s a very popular card.

    A lot more people are getting that range of cards so they can run games at max on higher resolution multi monitor setups.
    People are beginning to move out of the depression and disposable cash is (believe it or not) increasing for people now.

  14. If you look in real terms though $200 ten years ago probably isn’t too far removed from $300 today. Certainly not the 50% increase they are claiming in any case, which, imo, makes it a pretty lazy point. Also I think people are spending more on top end GPU’s because a) modern day games are arguably more reliant on them then the CPU, RAM etc. and b) the prices of other components have tanked rapidly, allowing more space in the budget to splash the cash on a pimped out graphics card.

  15. AMD fanboy news!