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Home / Technology / Nvidia fell in love with an orchestrated price trap, says AMD exec

Nvidia fell in love with an orchestrated price trap, says AMD exec



Conclusion: The GPU Wars are underway and AMD plays Hardball. The recent move to lower prices for the RX 5700 cards was not a reaction to the introduction of the Nvidia Super 20 series, but a devious, pre-planned pricing strategy.

When AMD unveiled the Radeon RX 5700 and 5700 XT, they were listed at a list price of $ 379 and $ 449, respectively. When Nvidia launched its GeForce RTX 2060 and 2070 Super Cards to torpedo the release of AMD RX, AMD responded with a price cut to $ 349 and $ 399.

In an interview with Hot Hardware (less than 26:30) Scott Herkelman, vice president and general manager of AMD's Radeon division, said the price cuts were a pre-planned maneuver to get Nvidia to exaggerate its supers.

because their cube size is large and we therefore only played the recommended retail prices, "said Herkelman.

However, it was more than just a game to get his rival to raise his pricing pricing. Herkelman says that they have seen the regular RTXs in 2060 and 2070 struggle with slow adoption. AMD also wanted to cause a "blockade" there.

"We took the right step to block not only their super series, but their 2060s and 2070s, too, because we knew they had slower success," Herkelman admitted. "And we wanted to do a double fake that would not only block their super strategy, but also slow their 2060's and 2070's."

Was it a sneaky move? Sure, but everything is fair when it comes to defeating your competitors, and ultimately leads to a profit for the consumer. For Herkelman it's also a win for AMD.

"It has been so much fun in the last few weeks just playing it out," said Herkelman. "It's just fun to finally win."

In fact, the consumer is just as much fun watching the GPU manufacturers as they are playing with lower prices.


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