After years of enjoying the increased demand from cryptocurrency mining, GPU manufacturers have begun to signal they might not be too thrilled about miners overcrowding the market. Nvidia has requested retailers to take some measures to try and ensure its produces get into the hands of gamers, not miners.
Nvidia Tries to Protect Gamers
Nvidia Corporation (NASDAQ: NVDA), the graphics processing unit (GPU) manufacturer, is asking retailers to limit the amount of graphics cards they sell to cryptocurrency miners. This is done in an effort to tackle extreme price gouging and sever supply shortages caused by the rising profitability of cryptocurrency mining.
A review of graphics cards distributes in Germany has found that four out of six retailers has put in place stricter limits on Nvidia’s Geforce brand over the past month. By limiting the number of cards per order to two or three, the manufacturer hopes to discourage cryptocurrency miners who buy in bulk, and have as many as possible reach gamers.
A Three Pronged Attack
Cryptocurrency miners are now squeezing gamers out of the GPU market in three major ways. First, ASIC manufacturers such as Bitmain buy an ever greater amount of chips from foundries such as TSMC, leaving less production capability for Nvidia. Second, the big mining farms reportedly get large quantities of GPUs directly from factories in China before they can even enter the market. Third, smaller professional miners buy cards in the hundreds from retailers or online, pushing the price up and preventing them from reaching gamers.
Nvidia spokesman Boris Böhles told the German tech magazine computerbase that: “For NVIDIA, gamers come first. All activities related to our Geforce product line are targeted at our main audience. To ensure that Geforce gamers continue to have good Geforce graphics card availability in the current situation, we recommend that our trading partners make the appropriate arrangements to meet gamers’ needs as usual.” Still, Nvidia stresses that retailers do not have to follow this “recommendation,” as the manufacturer does not want to intervene in the freedom and independence of traders.
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