NVIDIA: Gamers need to realize that current video card prices are "normal"

NVIDIA: Gamers need to realize that current video card prices are "normal"

As much as half of her 40-minute speech at the Goldman Sachs technology conference, NVIDIA's financial director Colette Cress was forced to focus on the overproduction crisis in the video game map segment. She said that the prices were now close to normal, and by the spring of next year the company would be able to return to the growth in the volume of its products, not behind the mountains and the announcement of the new graphic architecture, as she confirmed.

In the previous five years, Colette Cress explained that NVIDIA had increased its performance in the game segment by an average of 20 per cent annually, that about half of the increase had resulted in an increase in the average price of selling video cards, and that the other half had been supported by an actual increase in the number of video cards delivered. Since the beginning of the pandemic, the NVIDIA's revenues in the game segment had increased by 70 per cent, mainly as a result of an increase in the average price of sales, although the volume of deliveries had also increased.

In the long run, the NVIDIA leadership sees the possibility of a further increase in the average price of playing video cards, but it is not possible to do so at this time. First, there are many current-generation video maps in the warehouses. Second, the pandemic period has created such a high base for comparison that the performance achieved then will be difficult to close in the current economic environment.

With regard to the impact of the cryptoval boom, Colette Cress has not decided to quantify the impact of this factor on the company's revenues in 2021, although after the previous wave of "cryptal fever", it has done so. The impact of the secondary video card market on the current sales situation of the new financial director NVIDIA is considered limited.

The demand for graphic processors, according to Ms. Kress, is very high and now, simply there is a large backlog of finished products in the warehouses, which means that the company is forced to reduce the volume of supplies on its part. "NVIDIA's financial director said. The company is trying to get rid of the storage surplus through price incentives. Normalization of the situation will take place in a couple of blocks. Colette Cress believes that by the end of the fourth fiscal quarter, it will be possible to talk about the normalization of the stock of video cards in the warehouses. Between February and April, NVIDIA will have to return to growth.

It is characteristic that the company also has surplus products in the solution segment for professional visualization, which means that problems with demand and supply bias do not exist only in the game direction.