The GPU Market Is Broken: Why the Industry Needs to Change

A Troubling Pattern in the GPU Industry

The recent launch of NVIDIA’s GeForce 50 series has been anything but smooth. From manufacturing challenges to misleading marketing around the RTX 5070, this release has left many disappointed. Performance gains over the previous 40 series are minimal, and the pricing situation has only made things worse. But the real issue isn’t just this launch—it’s a cycle that keeps repeating.

Looking back, it’s hard to ignore the similarities to previous GPU generations. When the RTX 40 series debuted, prices were inflated, availability was scarce, and buyers were left scrambling. Now, with the 50 series, we’re seeing the same frustrating pattern. Finding a GPU at NVIDIA’s suggested retail price is nearly impossible, and nearly every model is marked up well beyond what gamers were expecting.

So, what’s driving this problem?

A Broken Pricing Model

During the COVID-19 pandemic, GPU prices skyrocketed due to supply chain disruptions and increased demand. Some consumers were willing to pay whatever it took to get their hands on a new graphics card. While supply issues have largely resolved, the pricing trend has stuck around—but instead of scalpers profiting, it’s now the manufacturers and retailers.

The current business model allows add-in board partners (AIBs) like ASUS, Gigabyte, and Zotac to dictate pricing. In theory, this should lead to product differentiation, but in reality, most models are nearly identical aside from slight overclocks or additional cooling. Whether you buy directly from NVIDIA or an AIB, you’re essentially getting the same card—but at drastically different price points.

A prime example is the RTX 5070 Ti. NVIDIA lists a starting price of $749, but a quick search on retailer websites tells a different story. The cheapest models are priced at $799, with some reaching $900 or more. When minor cooling tweaks don’t justify such extreme price differences, it’s clear the system is flawed.

Can NVIDIA or AMD Fix the Issue?

NVIDIA has made small efforts to address the problem, offering a limited program where select US customers can purchase the RTX 5090 or 5080 directly from the company. However, this doesn’t solve the broader issue of excessive markups across the industry.

On the other hand, AMD’s new Radeon 9070 and 9070 XT, priced at $549, could force NVIDIA to reconsider its pricing strategy. If AMD can keep its cards in stock and at reasonable prices, it might create enough competition to shake up the market. But history suggests that these lower prices won’t last long unless there’s a fundamental shift in how GPUs are sold.

The Future of GPU Pricing

Eventually, prices for this generation of GPUs will stabilize, but the underlying issues will persist unless something changes. The current AIB model allows unnecessary price inflation, making each new GPU release a frustrating experience for consumers.

The industry has operated this way for years, but that doesn’t mean it should continue. With every launch, the situation seems to worsen, and unless companies rethink their approach, PC gamers will keep facing the same struggles.

It’s time for change.