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Graphics chip specialist NVIDIA (NASDAQ: NVDA) has deployed maps based on its latest Turing architecture over the past eight months. It began with the RTX 20 series, a set of high-end graphics cards with dedicated hardware designed for the intensive ray tracing task. These expensive cards were followed by the GTX 16 series, which abandoned ray tracing equipment and focused on mid-range and low-end price levels.
The latest NVIDIA Turing card, announced on April 23, is the GTX 1650. This $ 149 graphics card replaces the GTX 1050, delivering up to 70% better performance at a price plus 37%. This is a better price / performance compromise than some high-end cards from NVIDIA, but it does maintain NVIDIA's price increase strategy.
In this case, NVIDIA's inclination to increase prices could turn around, opening the door to competition Advanced micro systems (NASDAQ: AMD).
A GTX 1650 graphics card. Image Source: NVIDIA.
An unorthodox launch
NVIDIA generally allows news media to test new graphics cards before launch. Technology-based outlets therefore have enough time to test them before making them available to the public. This is not the case with the GTX 1650. NVIDIA chose to ignore this step this time, even by suspending the software drivers needed to use the card.
AnandTech, an online publication, has called the news of NVIDIA "very unorthodox (if not downright devious)." The criticisms of the GTX 1650 being more and more rare, we now understand why NVIDIA chose this path.
It's not that the GTX 1650 is a bad product. It dramatically improves performance over the product of the previous generation and uses very little energy. It allows PC gamers to play most games at 1080p resolution without compromising graphics.
The real problem for the GTX 1650 is the competition. By increasing the price by as much, NVIDIA has launched a product that does not compare favorably to a two year old AMD graphics card. The AMD RX 570 processor, launched in April 2017, outperforms the GTX 1650 in most game tests conducted by the Tom & # 39; s Hardware website. Some models have twice as much memory. The high memory version can be found for as little as $ 140, and the low memory version is even cheaper.
The only area where the GTX 1650 exceeds the RX 570 is that of energy efficiency. The GTX 1650 has 75 watts of thermal computing power, half the size of the RX 570. The fact that NVIDIA is able to offer slightly lower performance, but half-use is a technical feat.
But in cases where this additional consumption is not an important factor, the aging RX 570 wins the day. Not only does it beat the performance of the GTX 1650, but it is also cheaper to start. NVIDIA could have had a winner in hand if it had kept its price close to that of the GTX 1050 at $ 109. But the company seems to be addicted to extracting increasing amounts of cash from its customers.
Navi is coming
The end of NVIDIA's Turing launch comes as AMD prepares to unveil its new generation of Navi graphics cards. The company has not revealed much, but it seems likely that it is focused on the mid-range. AMD's two-year cards stand up against NVIDIA's latest offerings in terms of performance and price, allowing AMD to give NVIDIA's pricing strategy a completely crazy look with Navi .
AMD has struggled to capture NVIDIA's market share over the years. Therefore, the fact that Navi is a winner is far from a guarantee. But with the aggressive price increase of NVIDIA, AMD could knock down the head of the graphics chip a notch or two.
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