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Here’S the things that amd and nvidia can do right now to help save pc gaming for the rest of us coming right up. Hi welcome back to pc builder i’m jason. Today we are going to cover the problems in pc gaming and yes, i don’t think this slide here is actually as melodramatic as many might think. I think pc gaming is in a lot of trouble and amd and nvidia must act immediately in order to start the process to get us back on the right track and save gaming. Of course, our channel here is all about giving you the best price to performance. In your builds, so if that’s content you want to be part of remember to like subscribe and click the bell icon. That way you get notified when we go live all right with that, let’s jump straight into it. So of course a small disclaimer i’m. Obviously, not a financial advisor. This is not financial advice. Please don’t! Take it as such i’m. Simply looking at my crystal ball, as somebody who’s been in and around pc gaming for quite some time and seeing the progressions going on and making some educated guesses about where this needs to go and what some of the actors involved need to do. Other people might disagree with me, one of whom i would i’m going to put down in the video description, moore’s law. His dad did a really great two part series on this topic.
He reached some different conclusions than me. You should watch those videos decide for yourself, but this is my opinion kind of my take on the market. So here we go let’s talk about why pc gaming is actually a lot more trouble than many people think it is, and it all has to do not with the health crisis and some of the shortages caused by that as much as it has to do with Cryptocurrency, specifically ethereum and ravencoin, these are coins that are actually mined using gpus. Why am i showing you bitcoin, then? I think the trajectory that bitcoin is on and has gone through is a similar trajectory to those other currencies, even though those other currencies have important differences. I’M simply talking about it from a market’s perspective, particularly with respect to how it’s going to impact the gpu market for gamers. So let’s take a quick look at this. So how did bitcoin go from a currency that was up and down and it kept jumping up? Like in 2009, 2011 only to crash back to earth each and every single time until 2017, 2018 crash well the difference between then and now, where it’s reaching all times hot all time highs above 50, 000 and a lot of people think it’s going to go even Higher is it has gained institutional support for the currency. This is no longer something that your crazy uh, your crazy friend, is mining and and throwing all their time into.
This is something that major financial institutions are now investing in. Well, what comes with major financial institutions? Things like too big to fail come with major financial institutions, because those institutions have the political power, have the market capacity and other things in order to protect their own investments. So i know a lot of folks in the gaming community think right now that oh this, this cryptocurrency thing it’s going to come then it’s going to crash we’re going to have all these cheap gpus on the market. Maybe not this time. So now that we’ve seen where bitcoin has gone ethereum is on a very, very similar trajectory now bitcoin, obviously isn’t mined with gpus, but ethereum is ethereum starting out earlier this year, and i should say last year hit a low of about 90 dollars per ether that’s. What the currency is called back in march 12th, that’s just about a year ago, as i’m filming this it’s about you know 11 months currently sitting at a high of almost 2 000 dollars per ether. That is an insane trajectory, and this is why a lot of people think oh it’s, a bubble it’s going to crash, but as we’ve seen with bitcoin as ethereum also gains institutional support and institutional backing, it could also become too big to fail. Well, what’s the problem if it becomes too big to fail. Well, as i used to say in the western, this town, ain’t big enough for the both of us and unfortunately, the current gpu market simply is not big enough to both supply cards for cryptocurrency mining as well as for gaming, and when that happens, not enough supply.
A lot of demand, what happens? Prices skyrocket and you can see that here go to newegg check out. Look at all these cards i’m willing to buy here the cheapest one is a crappy gtx 1650, not a super, just a crappy 1650 for 317 dollars, plus 40 bucks shipping, which is insane because these are all third party sellers, because newegg is out and if you Watch my videos on how to get old generation cards. Yes, you can still use some stock trackers, yes, newegg shuffle is still probably your absolute best bet for the new cards. I’Ll put links to those up in the card, but this is the fallout from that and a lot of people think well we’ll. Just wait this out i’m just going to wait out this situation, but in fact, every single month, every single week, every single day these prices are going up, supply is declining, not increasing and demand is staying. Super strong and frankly, as the price of ethereum goes up. So does that demand, so that brings us to who can actually save gaming. Well, frankly, in my opinion – and i know some people disagree with this – only amd and nvidia are positioned to actually do something about the current crisis. People have talked about gamers, banding, together, look guys. We are way way way out of position here. Nobody wants to sell gpus to us right now, because they can get a lot more money, selling them to other people, and the market is only so big.
So what needs to happen? Because mining is not going away? Number one we’ve got to admit mining is not going away. We are going to have to evolve the market to coexist with mining and gaming together, that’s the first thing that amd and nvidia have to acknowledge and have to move towards and here’s how they do that. So one of the first things i want to see them doing, i think it. It really really makes a difference. They need to come out amd and nvidia and make a very, very strong statement in support of gaming gpus for gamers. The kind of thing that we’ve been seeing recently, especially zotac’s recent screw up zotac, is one of the aib partners for nvidia. They make nvidia cards and this tweet an army of zotac gaming gpus hungry for coin, and they show their really cool looking card by the way all white, a number of them in uh, in a cryptocurrency mining set up here. That to me is just absolutely brain dead. Obviously they agreed because they deleted this tweet, not long after. However, video cards got a copy of it and put it up here for all of us to see, but number one amd and nvidia have been getting away with. Almost being dead silent on this issue, now that’s beginning to change in like the day i’m filming this. But they absolutely have to come out and start making very, very strong statements that they make gaming cards for gamers and if they are going to make something for mining that’s going to be for mining.
That is the beginning of reinforcing a pro product segmentation. That is going to be necessary to evolve the market so that mining and gaming can co exist because, right now, mining is kicking the crap out of gaming all right. The next thing that amd and nvidia absolutely have to do is continue with the just released nerfs that nvidia released for its rtx 3060 cards for cryptocurrency mining. Yes, this is not a perfect solution and this is not going to stop anyone who absolutely wants to use these things for mining and i’m talking about the big institutional mining players who can write their own bios’s. I completely agree, on the one hand, with uh: moore’s law is dead on this, that it will not stop, but we have to begin in order to force a product segmentation. We’Ve got to begin to introduce at least things that are going to slow it down. We’Ve got to put some speed bumps in the way. Yes, i know this is going to hurt small miners like people who just want to buy my a card and also use it for mining to help pay for the card. I get it it sucks that tends to be the way capital markets develop in the world. Is that the the small players get run over by the big players? It just sucks, but i don’t see another way to actually save gaming right now. Gaming is a massive industry. Mining is a massive industry.
What we have is the collision of the two along the the fault line of the gpu market, so in order to evolve that something has to change, somebody’s going to lose out and i feel bad for those small miners out there, because they’re just ordinary folks, remember: We’Re not at war with miners we’re, not even at war with mining. We want to find a way to co exist, but in order for coexist, both sides are going to have to give now, of course, it’s not enough just to try and nerf the game. The mining performance of gaming gpus, you have to introduce a product that’s, actually better at doing that than the gpu itself. Yes, there is limited production right now of these kinds of dies, and yes, right now, segmenting that out may take away some of the the cards that would otherwise be used for gaming. However, i think it is an important investment right now to begin segmenting. These two products and begin evolving them in very different directions from each other, so they’re no longer competitive, nvidia just announced they are restarting their crypto mining processor series, their cmp series. This is a good start. I wish amd would take a similar and probably they’re. Looking at this right now, given the strong demand and continuing demand for it, it would be really really nice to see them continue to evolve this and continue to evolve this in such a way that these created on different processes – yes, it’s, going to cost a lot Of money to develop i’m a realist, i know that this is going to be a multi year process.
But again i see this as a forever problem and the only thing we can do is develop a an evolving forever solution. So yes it’s going to take a couple years, but i think that this is the right approach as painful it is going to be for us for the next 12 months or 18 months to develop the production capacity. This is the way it’s got to go. Finally, what else do amd and nvidia have to do? They have to introduce cards like this, the radeon rx 570, or rather reintroduce them? These are cards made on older process nodes that will not compete with their current seven and eight nanometer processes. Now it may or may not be feasible to restart production on some of these at global foundries, for instance, where the polaris cards i believe were were created on 14 nanometer. Now they have a 12 nanometer process. However, amd showed us last year when they introduced the ryzen 1600 af that they had the capacity to take a 14 nanometer original design and shrink it down to 12 nanometer, and we got it shipped with improved performance right instead of being a ryzen 1600. The performance was closer to a ryzen 2600, instead, i’m, really hopeful that there are ways in which we can reactivate some of the older production to at least buttress the lower end part of the market that has been absolutely devastated. A budget gpu now costs 400 dollars for a gtx 1650, not even a super that’s insane.
Those card prices have to come back down in order to stabilize the gaming market and make it accessible to everybody. Yes, you might not be able to get the latest greatest gaming card, but you won’t have a system that has no graphics card whatsoever, which is where a lot of us are so that’s. What amd and nvidia have to do right now in order to begin a multi year, segmentation away from gpus being used for mining and create two different product segments that’s going to do it for us. If you like this kind of video, i don’t do a lot of them. I mostly do pc building stuff.