60%
Plausible
This isn't good news for PC gamers at all, as a new report suggests that GPU manufacturers may halt production of mid-to-high-end gaming GPUs to address memory shortages.
AMD/NVIDIA Could Halt Budget GPU Production As Memory Shortages Force Them to Reallocate Capacity
It appears that DRAM shortages are going to affect gamers on a much larger scale than just being confined to RAM supply, as according to a report by the Korean media outlet Hankyung, it is rumored that AMD and NVIDIA are looking to "discontinue" budget-oriented GPUs, since their BOM (Bill of Materials) has risen dramatically with higher GDDR module prices. The report doesn't specifically mention which SKUs could be affected by this move, but our best guess is that NVIDIA's '60-class' and '50-class' models would most likely be the victims here.
There's no doubt that memory prices have risen 'shockingly' in the span of just a few weeks, which has given the supply chain no time to adjust at all. Companies are experiencing a 'panic buying' phase, primarily since most of the DRAM production capacity is being allocated towards the global data center buildout. In such desperate times, it is imminent that manufacturers will prioritize segments that are generating higher ROIs for them, which is why the consumer GPU production is expected to take a step back, especially for models that have 'slim' profit margins.
It is indeed unfortunate to see the state of the industry with memory shortages onboard, as they have dramatically affected the prices of individual components, with RAM modules experiencing an aggressive rise. With this report, it would not be incorrect to say that GPU prices could also 'skyrocket' within the upcoming weeks, especially for more mainstream models. Vendors like ASUS have already expressed concerns about potential price increases for consumer devices if DRAM shortages persist, and the situation appears to be worsening moving forward.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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