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Encouraging GPU Price Gouging

2017-09-10
need a new GPU grab this XFX play hard rx 570 from at best buy for only $279 and get the quake champions back free good news at Best Buy has XFX Radeon rh5 70s back in stock and at a great price of $279.99 whose side are you on you can't both imply that retailers are gouging consumers to rake in cash on the mining boom and simultaneously promote said retailers and gouged prices and sales of which there are often 20% discounts on something that's overpriced by more than a hundred dollars already it doesn't work these two ideas they don't mesh together and it just looks two-faced and here's the thing these tweets from AMD they're promoted in rx 570 it is cheaper than it was technically but it's still encouraging a price which is fully a hundred dollars over amis RP and not just over MSRP but over what the card used to be available at before all the mining business that's not to say it's Andy's fault that the prices are high Andy keeps trying to say that it's not their fault in fact they have implied maybe not directly said on record but there's the implication and all of the statements that have gone out to different publications that look this is the retailer's gouging or someone else in the chain ultimately you've got AMD who work with Global Foundries and all of them and these ships to someone AIB partners distributors suppliers retailers they're all in the chains someone in there charges more but to then go and promote those higher prices after sort of indirectly condemning them it doesn't sit right and the thing is that ultimately Andy is publicly encouraging these higher prices but Andy's in a tough spot let's be fair to them here AMD has to promote their partners they can't very well say Best Buy is gouging you don't buy from them that that probably wouldn't be go over to well and Andy doesn't have the command to do that type of thing so it's a hard spot they can't just straight condemn the prices and the retailer is calling them the cause of the price but they also have to you know they have to sell a product and also have to look good to consumers and part of looking good to consumers is saying we're on your side we we don't set these prices we don't control the prices we are at the whim at the command of the retailer is that the distributor is that the AIB partners whomever in the chain is causing this increase and likely it's a bit everywhere all the way down the line there's probably slide increases that amount to this $100 up charge on a video card which is active at launch anyway was actually a great value $280 oh no way don't do not buy an Rx 574 $280 please don't do that please MD has now become the proverbial accessory to a crime against consumers Best Buy might be robbing the bank but Andy is holding the bag open as the retailer furiously stuffs it with cash and these tweets are openly encouraging these inflated prices and that's just a few months after condemnation to a roomful of press using such phrases as we can't hold the gun to the retailer's heads to get the price down implied so there are two different stories here this is the rx 570 when we reviewed it just to remind everyone before people start screaming chill because we're pointing out something which is clearly a bad deal right now to remind everyone the rx 570 was pretty highly received so was the 470 in fact with our outlet and the price then was about $180 it kind of spiked up to 200 and sadly if you go look at the review we thought 200 wasn't overcharged we thought that was retailers cashing in or bored partners cashing in well how little we knew about what would happen eventually but that's not the point the point is that at the 180s $200 mark it wasn't a bad Buy you could more or less equalize for the missing shaders on the 570 versus the 580 by overclocking just like the 56 versus the 64 that's how these cards tend to work so it was a good deal it out formed the 1050 TI somewhat significantly at times you're looking at with a 1050 TI you got anywhere from 58 to 75% of the performance of the 570 and it was only about $30 cheaper at the time so you're looking at a almost a dollar-for-dollar performance increase in some titles and even better in many cases now though that card has stayed about the same $145 but the 570 has gone up to 280 apparently on sale with quake and you're still at the same performance difference 58 to 75% of a 574 now half the price but even a 1050 TI we don't have to stop there you look at a 10 63 gigabyte and this isn't to say nvidia is the better Buy it's this well I guess it sort of is because when you're looking at prices of $280 for what effectively constitutes some performance in between a 10 to the TI and a 10 60 that's a really bad deal and gamers shouldn't be buying into it and ultimately everyone says vote with your wallet but there's more to that than just voting with your wallet you have to look out for yourself as a consumer if $280 is considered a good price when it was a lot less than that previously even if it seems like a good price now that doesn't mean you have to buy it if you desperately need a GPU consider the alternatives consider used consider pulling one out of one of your old systems and using it while we wait for things to calm down either mining calms down or it keeps taking off like a rocket and AMD and NVIDIA combat Moore's apply one of those two things should happen eventually so you wait for one of those two things or you buy an alternative 1063 gigabyte cards are still $210 and some are the plus or minus 10 bucks on that and they outperform in rx 570 in nearly all games that we've tested 1066 gigabyte cards are presently about $280 coincidentally that is the cost of the rx 570 with Best Buy's very generous discount of 20% off of an overpriced upcharge about 80% so thank you best buy we appreciate that really great to know you're looking out for consumers and Andy it's great to see that you encourage those up charges Andy may be obligated to share that information they might have an agreement with us by they might have a social media exchange of some kind with XFX no matter where you look at it AMD's in a heart spot but that doesn't excuse what amounts to really just encouraging ripping off the consumer that's what this is at this point and it's sad because Andy tried to take the stance of we're on the consumers side things are overpriced we can't control it look we'll try and pump out more supply we'll try and fix this and then they promote it so again I ask whose side are you on pick one so here's the other aspect of this looking out the deal so you go to the page that they link to first of all there's a typo it says you get a game code for the ps3 that's it's actually PC it'd be kind of stupid if you bought a video card for a PC we got a game code for a ps3 so maybe maybe check that Best Buy the other thing is it's a $30 value game code that's not a it doesn't make the deal any better but if you go look at Newegg and how they value that code nuoc values at it at more than you pay on Steam to get the full game all of it not just the character pack whatever which basically constitutes the entire game today but you look at the retailers and they value these codes that am these bundling with the stuff as higher than the actual cost of those games to buy and that's to make it look like a better deal it's again comes back to the mining situation where offsetting the price by that much extra helps offset the value theoretically so someone like a miner but it also is just flat wrong that's not the price of the product so you can't just fudge the price until it fits whatever narrative you're trying to sell so that's on Newegg for that one the best buys got their own problems Andy clearly has their own problems they all have problems in this chain what I'm trying to say is you don't need to feed into it - just because AMD and Best Buy together are now trying to create a new norm of the rx 570 being $280 as the new norm and trying to make everyone feel like that is the that's a good price that's the right price to pay for it don't feed into it just wait wait for the prices to come down buy something else buy you rip something out of another system using IGP whatever but feeding into that is only going to perpetuate it what needs to happen is these companies need to learn if supply is so much of an issue maybe consider that either you set your prices higher or you make more of the product so that's all this is about it's about just you know look out for yourself when buying a card right now and it's sad it's it's disappointing I'm disappointed that a card which was very competitive and good the RX 570 at its launch price is now being promoted so much higher than it used to be and there are a lot of people who should receive blame for that but I mean you look at it this way the 1063 gigabyte cards if you need a video card today they're 210 plus or minus 10 bucks on average the gtx 1066 gigabyte cards are the same price as the 570 and remember the the 570 doesn't compete with a 1060 the 580 or 480 was the intended competitor to the 1016 so doing a head-to-head price match right now is not where the competition is it you have to look at the initial launch and who the intended competitor was in terms of card and it wasn't the 574 the 1060 that's not how it ever was until just recently so anything else is just trying to change the story and manipulate it into a point where you feel like as a consumer these cards are price match so they compete so I should buy the one that well whatever it has that you want to buy but that's not the reality of it the reality is 1066 a good bite is 280 bucks and so is the 17 the five 80s are still outrageously overpriced you can blame whoever you want for that retailers are certainly a large part of it again look at new egg Vega 64 just had its whole stock refreshed it looks like ase pushed out a lot of the cards that were stuck in packaging and assembly well they arrived that new egg and they're still priced about a hundred dollars more than they should be to be fair they include the game pack which has questionable value but either way it's a hundred over MSRP and that's with a whole new refresh of stock of Vega 64 so clearly folks like new AG are partially to blame their distributor might be to blame we can't just put it on a new egg or Best Buy who knows what their distributor is charging who knows what the AIB partners are charging we kind of know what the AIB partners are paying you can see our what does HBM to cost video for that but there's a lot of it gets muddy in between AI B's retailers and what we end up paying who's taking all the extra cash but either way it doesn't have to be taken if you don't buy the card so I don't know I guess it just bothered me that personally speaking that coming from an official Twitter account from a company that has more or less implicitly stated that the prices are being gouged out of the control of said company Andy it bothers me that they would go tweet and promote those inflated prices there's a disconnect there and it may come down to legal having a contract with Best Buy and XFX saying we got it we got to promote this we have MDF with them we have agreements with them we have agreed to exchange social media exposure and as such we get these deals or these rebates or whatever it may be that might be the case that doesn't make it cool though so I don't know thank you for watching I don't have much else to say on this was just kind of frustrating to me to see that after all this back-and-forth with AMD officially with back-and-forth with a Ivey partners officially or unofficially you hear the story as one thing being we're looking out for consumers we can't control this and then you see the reality of it on a Twitter account so Andy if it appears like I'm frustrated it's because I am I'm sorry but I'll tell you what it appears like the Andy accounts are doing it looks two-faced so whether or not that's the intention perhaps consider the perception of what's going on rather than the intention behind the scenes now you're all for watching you can subscribe for more or go to patreon.com/scishow feud like to help us out directly these types of videos I'm sure don't make friends at the companies but also things have to be said sometimes and mining is a good enough cover for some things but not for this I'll see you all next time there's a bug did you see it on my camera
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