HW News - Tom Himself Responds to Tom’s HW, 25% PC Price Hike
HW News - Tom Himself Responds to Tom’s HW, 25% PC Price Hike
2018-09-04
everyone welcome back to another
hardware news recap this episode is one
of the most packs we've had in a while
first of all Tom himself that one from
Tom's Hardware responded to our video
pretty cool and very happy to have his
response on the show we'll be talking
about that today and then Amazon sort of
strong-arming PC manufacturers component
manufacturers over the upcoming tariffs
some news that we got exclusively
through our sources so gamers Nexus
exclusive on that and then AMD shifting
focus of production from Global
Foundries to TSM C for its upcoming 7
nanometer process designs before that
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so before really getting into the news
quick notice on an update to our wall
art situation we've wanted some wall art
for the office and we want to recruit
you so we're going to be opening a Pio
box if it's not up by the time this
video's live we'll tweet out the address
on twitter.com slash gamers Nexus
otherwise we'll be in the description
below if we have it open and the hope
here is that if you have I'm mostly
looking for CPUs right now so we're
mostly looking for CPUs and nothing new
we have all the new stuff if you have
old CPUs that you don't want anymore you
genuinely do not want it you don't have
any sentimental attachment to it and you
just want to get rid of it then what we
want to do is take some of them deal it
them if they can be and then well
everything can be deleted if we're
honest and then frame it and make some
wall art so I'd like to make like a
history of AMD and history of Intel by
our fans art piece to put on the walls
just framed CPUs with a blurb next to
each one about the history of that
particular part who sent it if it was
overclocked what was the overclock you
hit so here's what you should do if you
have parts that you do not need don't
send us stuff we need it's not that big
of a deal
don't set of stuff you have a cinema
all attachment to but if you don't have
either of those things send us the old
parts you're not using anymore and
include a note of anything special about
it like what did it overclocked to when
did you buy it why did you buy it stuff
like that and the plan is to make just a
framed thing we can put on the wall so
we did end up getting a p.o box in time
for this so we'll put the address up on
the screen now if you want to send stuff
there for our art project quick note
though we're not sure how much stuff
we're going to get and with 300,000
subscribers it could be a lot or it
could be not a lot so there's no
guarantee anything you send will be
shown on camera we'll do our best but
don't expect it we're really just trying
to make some kind of cool wall art to
put it up and then you'll see it
occasionally the background of videos
and stuff like that hopefully but
there's no guarantee either way though
we'll have the address up on the screen
if you want to send something over and
you can also get it in the description
below so that's what we're looking for
right now and if you have other stuff
like old computer posters like stuff
from I don't know one megabyte or 100
megabyte hard drives or whatever just
like posters advertisements old
advertisements from magazines for those
ancient computer hardware parts you can
send those over too because we can
definitely use those the walls are
pretty barren right now and it'd be fun
to decorate it with with fan art and
then also definitely include either like
specify if you don't want your real name
on the card for who it came from
then put your alias that you want to use
instead alright first news item first
real news item Amazon strong-arming PC
manufacturers over tariffs this is
something that we heard directly from
multiple industry contacts actually and
we're gonna be working on a full story
on this soon so it'll be a standalone
story with quotes from CEOs even in the
industry so we went out spoke to a bunch
of CEOs and sales people and
manufacturing experts about how the u.s.
proposed tariffs will impact the
industry we still have a couple days I
think before everything's fully
finalized so we're waiting to produce
that video until then but for now we do
have some news on what Amazon is doing
so everything should be going into
effect on September 6th if it does go
into effect and the new tariffs are
expected
to impact component import costs
anywhere from 10% to 25% quite a big
jump and that's the import cost so
depending on the decisions by the USTR
those costs will be 10 to 25% and
they'll be passed on largely to
consumers and 25% could turn into 27% by
the time it hits the consumer because
the manufacturer is now engaging more of
their money which has a time cost
because that money can't be used for
other things so it might actually go up
some manufacturers we spoke with have
noted that for new products they are
actually trying to eat some of the cost
themselves so they'll make less money
but they want to make sure their
products can compete so they're trying
to keep MSRP down and they'll lower
their margin and by the way very
important thing here when we're talking
about what Amazon is doing and once I
mentioned this keep in mind most PC
parts are really low marginal like power
supplies are often under 10% videocards
also often under 10% some of them are
2.8 percent for some of the r-tx cards
for the partners we spoke to it's under
3% margin so if you're looking at a 25%
increase in cost to import it the price
has to go up they can't they will go out
of business if they sell it away sell it
at a loss obviously all right so what's
amazon doing that right now what we know
is that some of the PC component
manufacturers that you all are familiar
with in the industry have indicated to
us that Amazon is leveraging its
position as the leader in retail to
force part makers to keep their existing
price positions even if they lose money
on them so what's happening here several
manufacturers that we've spoken with
have indicated to Amazon that they wish
to raise their MSRP on existing product
lines in order to soak that cost of the
tariff impact and and the tariffs here
this is again first of all primarily a
u.s. thing but it will impact the rest
of the industry greatly and the tariffs
are not something that the manufacturers
can control that is a government thing
so it's not like the manufacturers have
decided to to apply them it's just it is
being applied to their stuff no matter
what assuming they go through so Amazon
does not want to
allow the MSRP increase to cover that
exchange they do not want to allow
manufacturers to pass that new cost on
to the consumer which is very noble on
the surface of it except then you can't
sell the product because they're not
making any money so what's happening
here there are workarounds some of the
manufacturers have indicated an interest
in spinning off a bunch of new SKUs
whether it's a new name or just a new
product idea on Amazon and a new listing
on Amazon and then discontinuing the old
ones so if they kill all the old
listings on Amazon bringing new ones
with new IDs then they can raise the
prices but that's extremely convoluted
there's a cost of that as well because
now you're paying people to sit there
and discontinue hundreds of products
SKUs and bring in new ones and it's
really it doesn't make a lot of sense so
amazon has decided it does not want to
permit the manufacturers to change to
make money with the tariffs in mind and
it's it's a problem there's not a lot
anyone can really do because ultimately
Amazon controls online retail so what
are you gonna do sell somewhere else and
lose all your market share I guess
that's the other option so we'll have a
full deep dive on the new tariffs coming
up shortly including again quotes from
at least one CEO and then a couple of
representatives within the industry
including sales people who make some of
the calls on this stuff and some of it
will also be a lot of it'll be off
record as well so we're talking to
everyone we'll have more after the
September 6th decision in the US by the
USTR
moving on AMD remained present in the
news this week with both manufacturing
level news and executive reshuffling
interestingly Andy has elected to shift
their focus to 7 nanometers going all
in-house AMD put it additionally they
have handed over production
responsibilities solely to TSM C as
GlobalFoundries has chosen to divert
funding and efforts away from their 7
nanometer node for the time being
fortunately for AMD other company
already planned on using tsmc and was
not fully dependent on Global Foundries
although multiple suppliers likely would
have eased to the supply chain Global
Foundries expressed an interest to
instead focus on improving its financial
position and selling higher margin
products namely 14 nanometer and 14 LP
products we'll push that angle
this came as a surprise as
globalfoundries was set to begin
high-volume manufacturing by the end of
this year for seven nanometer and was
bragging about it regularly as of now
all seven nanometer production is
indefinitely held at Global Foundries
but TSMC is still on track and Andy was
already planning to use them anyway
so then speaking specifically to Global
Foundries shift in strategy it looks
like the company is choosing to put
their seven nanometer node on hold for
all clients not just AMD and is instead
focusing on 14 nanometer 12 nanometer
FinFET designs and LP designs Global
Foundries sights exponential Rd cost and
a lack of business opportunities in the
immediate future for bleeding edge
process nodes but emphasized in an
interview with an intact that technical
abilities were not part of the decision
extracting more longevity out of mature
processes allows it Global Foundries to
focus on shorter term profits and
competition while gunning for emerging
opportunities and low-power chips
RF and embedded memory additionally
Global Foundries will be able to reduce
their workforce by 5% with some layoffs
and will also have to renegotiate their
wsas or wafer supply agreements with AMD
and Intel to reflect the new direction
and they will now be relying on TSMC for
all seven nanometer silicon and this
assures that their roadmap is still
intact from what we were looking at
earlier and and the does plan to use
tsmc anyway so it looks like they're
gonna be okay
also in AMD news there's been another
high-profile shuffle in leadership at
AMD this time Jim Anderson senior vice
president and general manager of Andy's
computing and graphics group has
announced his departure from the company
Anderson was responsible for overseeing
all of Andy's client computing business
and was key to their success strategy
with Rison Anderson has left Andy for
the CEO position at lattice
semiconductor and Andy has named his
replacement as Syed Bush Kalani next up
Nvidia a lot of you have expressed
concern that Nvidia did not really
discuss their typical gaming performance
and games that exist today the ones that
you have in a hundred percent of your
Steam library at this point and for the
RT X 20 80 TI vs. 10 80 TI there's
really
only there's not been much information
at all for those 228 years 1080 there's
been some but either way most of the
information has been relegated to ray
tracing performance and some of it has
been limited to a single and video made
slide about a 1.5 X increase which is
kind of nebulous so Nvidia's Tom
Peterson joined hot hardware on their
YouTube live stream last week on their
podcast and addressed several questions
pertaining to performance expectations
for the RT X series cards specifically
the 2080 Ti and 1080 Ti as they compared
to one another in normal rasterization
gaming performance
so although Peterson did clarify that he
didn't have the data in front of him at
the time keep that in mind his
expectation was that the 2080 might
perform the 1080 Ti in some instances
and one held to a firm answer by the
hardware team Peterson committed to a
rough 35 to 45 percent gain claim for
the 28 et I versus 1080 ti Peterson is
likely not the person running all the
benchmarks he's he does a lot of work in
the company but he's a bit higher up so
his notes that he wasn't looking at data
at the time and probably wasn't involved
in benching it himself would put us a
bit closer to the let's be cautious with
this data side of things so wait for the
independent benchmark still but if you
wanted some numbers or you wanted
something to hold Nvidia to that's the
closest thing we've got right now so
they committed to a rough 35 to 45
percent gain TI versus TI generationally
and again we'd still encourage waiting
for official testing for more
information the full interview video can
be found in our show notes linked below
so that it was pretty long video it's
about an hour long and they go through
just about everything including NB link
if you have more questions about that
stuff they cover a lot of it there and
the hardware team covered the RT x
series with Tom for that full hour for
the most part so it can might contain
some new information for you if you're
interested check the show notes below
and we'll have a link to their video
this next one is special to us this one
Tom's hardware is founder commented on
the controversy the just by controversy
and the GN video so founder Thomas papst
who left the site in 2007 just to be
clear here Tom himself the namesake of
Hardware hasn't been with the site for
about or just over ten years at this
point so it's not like he was personally
responsible for the chest by it article
quite quite far away from it actually
there's different editor in chief these
days actually there been several since
Thomas left so he commented though and
posted the comment on the gamers next
his Facebook page actually to address
our Thomas harbour video and the
response was made to our coverage of the
justified article if you missed it you
should check it out first but in that
video I asked a somewhat rhetorical
question uh uh I think I said Tom what
have you become look at yourself I'm
using Tom as an all-inclusive term for
anyone who writes at Tom's Hardware and
Tom decided to answer that question
because there's only one person who can
answer that question of what have you
become and Thomas response was as
follows you asked what happened Tom what
has become of you well there's only one
person who can answer that Tom has
become a daddy of two boys and doesn't
have anything to do with Tom's Hardware
anymore so far so good what does Tom
think of the article you love so
emphatically that's that's sarcastic
just to be clear here's he was being
sarcastic this is actually you can
actually tell this is sarcastic unlike
averin Pilcher's article where we I
didn't know if it was satirical or not
until later and it wasn't so if you
didn't know Tom went on to say well I'd
say Tom would have been less kind than
you have been with his assessment it is
ultimately ridiculous it is indeed
suicidal and its conclusions are
epically nonsensical referring to the
just by article by Tom's Hardware there
is value in being an early adopter
question mark aren't we who are
impatiently into the latest texts orally
aware of what we keep doing to ourselves
when we purchase technology at high
prices quote ahead of the curve its
massive fuckin kisum we make ourselves
paying beta testers and wait for
software and often other hardware that
will hopefully bless our brand-new tech
with the meaning and usefulness they
simply do not have by the time of our
premature purchase there are no RT x
games
there is value in adopting terrine early
because current games might be faster
than our 1080 TI SLI setup question mark
yes this is madness and good old Tom is
scratching his head no less than you are
Steve there's got to be value in
masochism I think that is full quote
Tama also said in the comments that he
and Igor from Tom's Hardware de are
currently discussing a potential
comeback well Tom if you wait long
enough
Avram will make sure that Tom's Hardware
calm won't be worth anything just buy it
so Tom first of all personally thank you
for watching the content and thank you
for commenting on it's great to have the
opinion of someone who was in the
industry sort of earlier than I was so
you've got you've got the historical
site to see what's going on got more of
an idea of what things have been tried
before by the company is how they play
out and a lot of this is is I mean this
is exactly exactly what we had a problem
with so Tom hit the nail on the head
here and we fully agree with his
comments on it so if you were wondering
what Tom himself if you're wondering
what has become of him that's what's
become of them and that's what he thinks
of they just buy it article on Tom thank
you again for watching and for
commenting we sincerely appreciate it
next one a star predator throw knows so
Astra's got a 485 pound gaming chair
sort of it's more of a cockpit than a
chair we're honest a straight debuted
the predator throw notice at Aoife 2018
and the chair ish weighs 405 pounds has
room for three 27-inch monitors plus
room for a predator gaming PC and it
also has motorised controls for the
footrest the keyboard tray and the
monitor arm it's pretty advanced piece
of equipment for something you sit in
the throne was also adorned with a
lighting and can vibrate or Rumble with
games as acer says much like a console
controller so they've got a rumble pack
where you put your ass in the chair no
word on pricing or availability but if
you wanted something that weighs 500
pounds and does all the other stuff I
guess
now you can buy
if you've always wanted that thing FCC
so the FCC is upholding that single ISP
markets can be competitive and fails to
let me be recently the United States 8th
Circuit Court of Appeals ruled that the
FCC can define single ISP markets as
competitive as long as a competitive
companies service region is less than
half a mile away
moreover the FCC is now allowed to quote
rationally choose which evidence to
believe among conflicting evidence in
its proceedings in short that can imply
that the FCC has free rein to discard
compelling evidence from customers or
smaller ISPs when making decisions
regarding bigger ISPs or market
conditions and surely there is no
conflict there it could also mean that
so long as single ISP markets can be
defined as competitive those ISPs could
be immune to business broadband price
caps which could be detrimental to
schools libraries hospitals government
agencies businesses you name it so yeah
great news Thanks thanks for that one
rumor here so the I $9.99 hundred K was
allegedly deleted this is another ninety
nine hundred case soldering rumor or
leak the folks over at X fastest have
allegedly gotten hold of the unreleased
I $9.99 hundred K and deleted it and at
X fastest they said that the well based
on the image they posted anyway it looks
like there's solder adhering the dye to
the IHS which would address these rumors
that have become increasingly more
realistic at this point and there's also
gold plating surrounding the dye and a
slightly different IHS design than
typically so it looks like the ninety
nine hundred K might genuinely be
soldered this time and finally hardware
sales first of all our our own stuff if
you go to store documents access net
we've restocked a lot of things we are
out of stock on the glasses thank you
for picking them up you bought bought
them too fast though so they're gone but
if you want a mod matte we have them on
backorder they're coming back in we sold
through the entire last round again
thank you for picking them up we have a
lot of them on the way so if you
backorder it now it'll get one in the
first round when it ships again and then
actual hardware sales like computer
hardware there's a bag of fifty six so
not only is it a rare
often-cited vega 56 card in the wild
that you can purchase it is also
reasonably priced and hopefully that's
still there when this video goes up the
WD blue one terabyte drive also
completely unexpected up for forty bucks
and we'll link those below if you're
interested in them otherwise show notes
below for sources for all these thanks
for watching go to store doc Andrews
access net to pick up a shirt like this
one we just restocked these full gamers
Nexus logos head to check to make sure
that's what I was wearing and the mod
mats are there as well and so are the
mouse pads by the way they've been
selling decently so if you want that
pick it up and subscribe for more I'll
see you all next time
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