MSI is going to increase asking prices for its graphics cards due to continuing production woes and GPU shortages from both AMD and Nvidia, according to a new report.
Assuming the report is correct, DigiTimes (opens in new tab) (via Tom’s Hardware (opens in new tab)) says that the chairman of MSI, Joseph Hsu, indicated that graphics card prices will be hiked to reflect ‘tight supply’ – and that this unfortunate situation could last ‘through the end of 2021’.
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That’s obviously a double blow in terms of bad news for gamers who are looking to buy a new AMD or Nvidia GPU, and if MSI is being forced to increase price tags, that inevitably leads to speculation about other graphics card manufacturers doing the same (as they are all facing the same kind of pressures – at least on the GPU availability front, and pandemic-related problems).
Hsu made the comments when talking about MSI’s Q4 2020 profits, where the company made less money than expected. Costs were up in the final quarter due to a range of factors that included logistics problems (shipping delays) and Taiwan’s currency strengthening. That said, the chairman was also careful to note that last year still saw a new high achieved in profits.
Gloomy GPU picture
Hsu predicted strong demand not just for MSI’s graphics cards, but also motherboards and gaming laptops, throughout 2021. These products will be in double-digit growth, Hsu noted.
Asus also recently observed that graphics card shortages will persist, highlighting a shortage of Nvidia GPUs, and noting that price hikes were happening (opens in new tab) as a result.
Overall, it really isn’t a pretty picture, and MSI chipping in with this latest nugget of negativity doesn’t help matters.
When vanishingly-thin-on-the-ground new GPUs do pop up for sale – either Nvidia RTX 3000 models or AMD Big Navi cards – they’re instantly snapped up, with scalpers getting in on the action, and crypto-miners too.
This has led to an odd situation with extreme measure such as Nvidia re-releasing the GTX 1050 Ti (a card which was discontinued two years ago) to give desperate folks an option at the budget end of the GPU market.