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In this article
we will review the four most recent generations of graphics cards to analyze their unreasonable pricing and suggest appropriate price points for each product.
Graphics cards are currently too expensiveGraphics Card Upgrade Frequency
The frequency of upgrading graphics cards affects the expectations of the performance improvement they receive. Some are satisfied with upgrading every three generations, while others aim to upgrade with each new generation. A survey shows that ~40% of users prefer upgrading every two generations, about 30% every three generations, 10% every generation, and the rest opt for other options.
Frequency of upgrading graphics cards according to a survey of about 2000 peopleWith such varied upgrade frequencies, the expectations for the performance of a new product will vary greatly. Those upgrading every generation will be content with slight improvements, while those upgrading after 3 generations will expect breakthrough improvements.
User expectations for graphics card performanceIf a new GPU can appeal to both frequent and infrequent upgraders, this generation will be considered successful.For user surveys, they want to know how much performance increase they will get when upgrading graphics cards at the same price point as the current product they are using.
For those who upgrade every generation, the most common answer is the desire for at least a 30% higher performance. For those upgrading every two generations, the expectation is a performance increase of at least 50%. And for those who upgrade every three generations, the majority want a doubling of performance.
Because people expect a performance increase of over 50% every two generations at the same price point, we also need to consider the factor of price erosion. For example, the GeForce GTX 1060 6GB was priced at $250 when it was released in July 2016. Adjusted for inflation in 2024, $320 has the same purchasing power as $250 nearly 8 years ago, according to the consumer price index.After considering all these factors, we will have comparison charts and analyses, including:- All charts use graphics cards from the 2016-2017 generation as a baseline.
- The lower blue line represents the necessary performance increase for each generation to meet at least 50% of survey respondents' expectations.
- The upper blue line aims for the satisfaction of at least 80% of respondents.
- Also included in these charts is information on performance per inflation-adjusted dollar, marked by two shades of green.
- Price information is also listed below the charts.
Nvidia GPU 250 - 300 USD
In this first chart, we focus on Nvidia GPUs priced around $250 to $300. If upgrading from the GTX 1060 6GB, the GTX 1660 shows a reasonable performance increase per dollar. However, the RTX 3050 is somewhat less impressive.
The RTX 4060 is an attractively priced graphics card.However, upon examining the RTX 4060, it actually provides a significant performance increase per dollar compared to the 1060 6GB for those upgrading every three generations, as it is twice as fast.Nvidia GPU 200 - 250 USD
One particularly disappointing aspect over the past decade is the lack of improvement in the $200 to $250 price range. There are no RTX 40 series products in that range, and every generation since the GTX 1060 3GB has fallen short of expectations. The GTX 1660 only delivers a 20% performance increase per dollar when adjusted for inflation, and the RTX 3050 is particularly inefficient.Nvidia GPU under 200 USD
Looking at the sub-$200 price range, Nvidia continues the trend of offering subdued products in this price range. However, surprisingly, they have managed to maintain consistent quality, providing nearly equivalent performance with each new release.For GTX 1050 Ti owners, both the GTX 1650 and RTX 3050 6GB are significant upgrades. However, for GTX 1650 owners, the RTX 3050 6GB seems to be a less attractive upgrade, although not too bad.Nvidia GPU 350 - 500 USD
In the range from $350 to $500, things become much more interesting. For GTX 1070 owners, the RTX 2060 is almost acceptable. Next up is the RTX 3060 Ti with a performance improvement per dollar of over 80%; this product will encourage many to upgrade.Looking at today's products, the RTX 4060 Ti in both capacities is a noteworthy upgrade compared to the GTX 1070, especially when considering inflation. So why is this generation's product being less well-received?
Its success doesn't solely rely on comparing it to an 8-year-old GPU. While it also demonstrates a reasonable upgrade compared to the RTX 2060, the real issue arises when resetting expectations based on what was provided with the RTX 3060 Ti. We can see that the 40 series is a rather modest upgrade compared to the previous generation, failing to meet the performance increase expectations of those upgrading every generation.This also affects those using older versions. If someone has a GTX 1070, the excellent upgrade would be the 3060 Ti, not the RTX 4060 Ti.Nvidia GPU 500 - 600 USD
Nvidia faces similar challenges in the $500 range. The RTX 2070 doesn't offer any significant benefits. However, the RTX 3070 succeeds in providing significant improvement for RTX 1070 users.For those who bought the RTX 2070, the 3070 is considered a great upgrade, exceeding the necessary performance increase to satisfy 80% of buyers. As for the 4070, it doesn't bring a significant upgrade compared to the RTX 2070.AMD GPU 200 - 300 USD
Now moving to AMD GPUs, let's first focus on their mid-range models around $250. For those who bought the Radeon RX 580 8GB in 2017, the RX 5600 XT is somewhat underwhelming, and the performance of the RX 6000 series heavily depends on the price considered.Products like the RX 6600 and 6600 XT were launched during the cryptocurrency boom at relatively high prices. After the boom ended in the later part of 2022, prices quickly dropped to lower levels.
Radeon RX 7600Essentially, the Radeon 6000 series would have been a significant failure at the initial suggested prices, but with adjusted prices, it has become a major success, with both the 6600 and 6600 XT providing a worthy upgrade compared to the RX 580. The RX 7600 also doesn't seem like a bad upgrade choice.However, when readjusting expectations based on the RX 6600 XT, the RX 7600 once again falls short. Similar to the case of the 4060 Ti and other Nvidia GPUs, for those skipping a generation expecting better performance in the following years, that didn't materialize.AMD GPU 300 - 350 USD
At around $300, we consider upgrades from the Radeon RX 590 to the 7600 XT. For those upgrading from the RX 5600 XT or RX 6600 XT, the improvement offered by the 7600 XT is extremely lackluster, with the only notable advantage being a doubling of VRAM capacity.AMD GPU 350 - 500 USD
Mid-range products are where AMD typically offers the best value, and this trend persists across many generations. Starting from Vega 56, Radeon 5700 XT, 6700 XT, 6800, and 7800 XT are all excellent upgrade choices.Compared to the Radeon 5700 XT, AMD has made reasonable improvements, especially for those buying the RX 6700 XT post-cryptocurrency boom. This trend continues with the 7800 XT. However, compared to the RX 6800, the 7800 XT appears less appealing.AMD GPU 500 - 600 USD
Vega 64 was an unimpressive product at its launch in 2017, so it's no surprise to see significant improvements with the RX 6800 and RX 7900 XT.AMD GPU under 200 USD
For products priced around 200 USD or lower, AMD has been less disappointing compared to Nvidia and relatively consistent in providing reasonable performance upgrades for each generation. Compared to the RX 570, the Radeon RX 6600 at a price of 220 USD post-cryptocurrency boom is quite appealing. However, the RX 6500 XT disappoints in terms of value. Currently, there are no 7000 series products in this price range, while AMD continues to effectively sell the RX 6600.What is the Reasonable Price for Graphics Cards
To meet the desires of many buyers and make the current generation as enticing as better generations in previous years, this is the appropriate price range for each graphics card model.- RTX 4070 should have launched at 500 USD, on par with the 7900 XT.
- The 7800 XT should ideally be priced at 460 USD.
- Around 400 USD, we should see the 7700 XT competing with the RTX 4060 Ti 16GB.
- Below that, at 300 USD, there should be a battle between the RTX 4060 Ti 8GB and the RX 7600 XT.
- At a price of 250 USD, the battle should ideally take place between the RTX 4060 and the RX 7600.
What is the Reasonable Price for Graphics CardsCurrently, even accounting for inflation, most current-generation GPUs are priced too high by 50 to 100 USD compared to expectations from previous years and what consumers desire in terms of performance improvements for each generation.Learn more: - The Q4/2023 graphics card market experienced a surge, with AMD's sales soaring and Intel capturing only 1%
- Check out more articles in the Market section
If you're interested in powerful graphics cards at affordable prices, take a look at the product list below:
