The PC Industry is in self destruct mode...

hey what's going on everyone Jay's two cents here you need to bear with me on this one here I got a little bit of a ranting sort of a I don't know monologue if you will open letter to the PC industry and by industry I'm talking about the manufacturers and all the aibs and aics and stuff because I'll be honest I'm just getting a little tired of this stuff the Kraken series aios from NZXT come in many shapes and sizes to fit your CPU needs the Kraken Elite Series RGB coolers feature a 2.36 inch 640 by 640 customizable LCD screen showing system info or custom images and gifs for a custom look F-series RGB fans and a single breakout cable for simplified installation if low key is more your thing the Kraken the weed series also comes in a Black non-rgb Edition while retaining the amazing pump screen to see the full lineup of new Kraken Elite and non-elite coolers from NZXT follow the link in the description below all right so there's a few things I want to talk about here because I I'm going to start off with saying I absolutely positively despise the term influencer it's not I'll be honest influencer is not something influencers name themselves an influencer is a term that came about because of marketing agencies marketing agencies view anyone with a viewership or an audience watching as influencers like hey we can use them to influence buying decisions and stuff now that's sort of true on what a lot of us do like I can't speak for everyone I can speak for I can say that other influencers I've talked to hate the term and although we do try to have an impact on buying decisions we try to make sure that we give people Smart Ones now of course I've made some mistakes in the past and so of other influencers we don't always get it right but I can tell you right now the purpose of buying decisions and influence has nothing to do with lining the pockets of the industry agencies and the marketing agencies and the brands themselves it's about trying to determine whether or not something's worth the cost and giving you guys information to make your own decisions on so that's a term that has just been completely bastardized over the over the duration that it's become a thing I feel like the marketing agencies look at influencer and really we could replace that term with manipulator because that's honestly how how they see it so I just want to put that out there first of all that I absolutely positively hate that term so I'm going to flip the script today and I'm going to use my influence to maybe keep you guys from making really really bad decisions and seeing through the that a lot of these marketing agencies that recommend that represent a lot of these Brands uh are trying to throw your way they're trying to get you to drink the Kool-Aid and you know I I did a little bit of research today on sort of pricing Trends over the years because the thing I'm noticing the reason why I'm making this video is the audience is just so turned off right now at the idea of building a computer or upgrading their computer or getting into PC gaming rightfully so prices are out of control game quality is just I wish that was in control but it's it's not it the game quality is terrible we've all been groomed to accept crappy products we've been groomed to accept crappy launches of games we've been groomed to just accept it is what it is and it will be fixed later and what that does is it puts all of the control and all of the power in the hands of the manufacturer or the game developer and in my opinion that's wrong that that is not the way this is supposed to be it's like if there's one thing the coveted shortages taught us it's people became excited at the opportunity to buy something were you someone that signed up for a raffle or Lottery raffle to be able to buy something Have you ever found yourself in a situation where you felt blessed for the opportunity to overpay for something well that's that's work We've Ended up and I think the other thing I want to address here is a lot of these a lot of these brands have they understand we know our audience and they'll ask me questions like how do we get people interested in computers again how do we get people interested how do we get people interested well I think a lot of the problems is many many of these industry brands don't understand you created the disinterest you did it and now you're asking us to help you undo it so let's go and start with like motherboards and I'm going to start with motherboards because of the fact that motherboards are a serious indicator at where pricing has gone completely off the rails now when I when I'm going to show you some charts here coming up in a little bit not for motherboard pricing but for GPU pricing and CPU pricing on the trends over the last 12 years going back to 2011. if you go back to 2011 2012 2013 and you talk about building a computer a high-end motherboard like a full featured motherboard that does not leave a bunch of features missing or stripped off the board to keep it you know cheaper like it was a full feature all the bells and whistles motherboard was like 250 maybe 300 like a 300 motherboard back then was just like wow you spent a lot on a motherboard because you could get serious well-performing non-lower tiered chipset motherboards for 89 bucks 99 bucks 125 dollars is where it started to look like okay we're paying a little more for a motherboard 200 plus was like wow you're really you're really going all out on a motherboard you know now if we look at motherboard pricing it's kind of ridiculous and let me explain these Brands and I'm putting everyone in the same boat here like all of the brands are responsible for making this same mistake and that is only marketing your Flagship models so what you start to do is you start to put a serious undertone in the industry of saying this is what it costs now that's not what it costs that's the most you could spend is looking at buying some sort of an elite motherboard or you know formula motherboard or whatever Brands top tier is going to be yeah you can spend seven eight nine a thousand dollars on a motherboard no problem but the diminishing return on that and the amount of Kool-Aid you have to drink to really think that that is necessary is just it's insane because today in 2023 a 200 motherboard is like an entry point like 200 which used to be the high end is now like oh now you're starting to get a couple of the features maybe that you know have been uh Stripped Away From Any board under that price point it's ridiculous what I've got right here is a is a new egg motherboards available in stock today at a Max price of 150 which again not that long ago was considered a solid mid to Upper range motherboard giving you all the feature sets that you would need and you know what the sad part is on this if we talk about anything current like Intel's LGA 1700 you're not going to get anything above a b660m I mean we're not even talking about like we're not talking see when we were talking about like z67 Z87 and all that you were able to buy the overclocking top tier chipset for the 200 or below price point but now we're talking B series motherboards b660. uh here's another b660m Asus Prime for 148 bucks and the problem is even when you look at like AMD stuff and I and this is probably because of how it's more expensive right now to manufacture am5 motherboards for AMD because they just switched to the LGA or the land grid array um pin out you know for the CPUs and no longer have it being on the CPU it's it's on the motherboard now the pins they're only am4 motherboards available for this price range of 150 and they're like b450s there's another AMD a520 for an A5 20 for a hundred and forty four dollars that is like the bottom spec period to get into am4's latest chipset for am4 not am5 obviously at a 520 for a hundred and forty four dollars ridiculous an h510 LGA 1200 for 141 h510 has no overclocking like there's no bells and whistles you might have to you might have two fan headers you probably have no RGB headers you probably have what one maybe two m.2s you might have three sedas there's not even a cooling Solution on the vrm brands this is this is why people are losing interest in computers because you are literally pricing out the buyer you you were going after whales and whales only and guess what there's not enough whales in the world to keep your your industry afloat when you price out the main buying demographic now when we talk we'll talk about inflation and stuff here cost of materials is definitely more expensive but it's not 50 percent more expensive for the cost of materials depending on on the material we're talking about here but if we look at like graphics cards today and this is this is where things really start to look gross if I right now I went on to New Wave this is as we're filming this video and I searched for graphics cards in stock under 300 we're looking at more 30 60s 40 60 which we already know how how terrible of a deal the 40 60 is 7 600 black gaming for 269 6650 XT for 249. um 7608 gig for 269. so I took some time to go and really just research what was the cost like what was the launch price of various graphics cards and I charted it so I charted it over from 2011 to 2023 what the launch price of particular graphics cards were so if we look at this chart that I've created and this is the scary part look at this chart you're going to see this massive Spike and that was 20 Series where that big old Spike was and then you'll see it get even higher and that's the 30 series when they started the 90 and the 90 TI and the 80 80 TI for um you know the 30 series a lot of these prices shocked me at what they used to be because I think we've been so groomed to accept higher prices as the norm until you go back and really look at what has been intentionally happening with pricing and I'm using Nvidia as the model here because let's face it we already know that AMD has been trailing Nvidia and AMD has also been unfortunately not innocent in following the Nvidia pricing model oh hey we can charge more we'll charge less than Nvidia but we can charge way more than we have been so unfortunately AMD followed suit with that but the GTX 680. was 549 at launch and we'll talk about inflation in a minute so hold up before even typing like yeah but inflation it's good it's it's gonna be eye-opening here 549 US Dollars was a launch price of a 680. 649 dollars for a 780. now what you're going to notice up until 20 series 549 to 649 is where stuff kind of trade and what you'll notice is like so 549 for the 680 649 for the 70. that's a hundred dollar Improvement then the 780 Ti was 6.99 however the 980 which was arguably faster than a 780 Ti not by a lot but it was faster was 549. a hundred and fifty dollars cheaper than the seven outgoing 780 Ti so the 980 TI came in at 6.49 which is 50 cheaper still than the launch price of the 780 Ti so this is when this was like the Golden Era of graphics cards like the seven the 700 series and the 900 series these were really powerful although the 700 series was hot but these were really powerful graphics cards that kept price parody with each other you know they just sort of slotted the old stuff the new stuff within the old stuff and gave you more for the same price or less in this instance the 1080 the Pascal which was arguably the the most golden era of graphics cards period the 1080 launched at a price of 599 in 2016. 599 then 1080 was such a performance leap beyond the 980 TI and it was 50 cheaper now this is where things started to really go off the rails though because that was when Nvidia introduced the founders Edition pricing for Founders Edition card was a 100 price premium above the MSRP of the card because Nvidia got into the business of selling cards direct to Consumer bypassing the aibs or the aics Adam board or add-in card there's a two acronyms that are always used if you're wondering why we switch back and forth but bypassing their own partners and selling direct at a hundred dollar price premium so the six the 599 price point did exist with some very basic like blower style coolers plastic shrouds just super basic cards because none of the aibs believe their designs were were MSRP or reference worthy they were all custom so they followed the pricing of 6.99 or up so that was where this artificial paper price sort of kind of existed but realistically it was 7.99 not 69 or 6.99 not 7.99 1080 TI came out 6.99 that was later that year the same year 6.99 with a Founder's price of 100 so additional so 7.99 20 series you guys all know how that went 20 series when RTX and RT cores and tensor cores and dlss and all that launched Nvidia wanted an absolute premium for it we're talking 700 or 6.99 for a 2080. now that was reference MSRP price 100 more for the founders or the 2080 TI at 9.99 with a 200 Founders edition price ironically if you guys remember that Founders Edition cooler the nvidia's first time doing a axial fantasy of a blower style was absolutely terrible some of the worst airflow ever in an axial cooler performed horribly in terms of temps a 200 price premium on the founder so what did that do that meant everyone else was going to follow suit that that 11.99 or higher that's where the big the first big spike was on the chart well 30 series came around 6.99 for the 3080. that's why the 3080 was supposed to be like amazing that's where ampere was supposed to be like absolutely fixing the market the only people who got 3080s for 699 dollars was the very first round of buyers before they were out of stock and then scalping and everything went completely off the rails and people were paying up to 2500 for a 3080. moving on they also launched the 3090 at the same time now this is the first time we saw a 90 series graphics card designed to be an actual mainstream gaming card although they tried to Market this very much as a poor man's productivity card it replaced the Titan you know there's no Titan cards in here it replaced the Titan as being part of the GeForce lineup a true gaming card as much as they argued with me that the 90 series wasn't for gaming and the Titans weren't for gaming they absolutely marketed them as such fifteen hundred dollars for the 3090 and then don't forget you know the 3080 TI at 1200 bucks price parody with the 2080 TI oh look how much more you're getting for the same price but the grooming right to accept higher prices 649 starts to look like a really good deal right and for the previous generation adti cards 40 or the 309 DTI 2 000 price point two thousand dollars and you know why because at that point they had already seen the evidence that there was enough people out there willing to pay ridiculously 3x markups on graphic cards that they went well let's just launch one at two grand and see what happens well guess what that was when people started to notice like this is absolutely ridiculous they are now wringing out the industry for every dollar that they can which now more than a year and a half later you're really starting to see the effects of the just dishonesty the intent to overprice and people are pushing back now 40 series came along 4080 launched at 1200 bucks 490 launched at 1600 bucks here's the problem if you look at the chart yeah sure it was a price reduction technically even though there's no 48 ATI you know Nvidia is planning a 4080 TI but I think they've held off on that because of the fact that there's so much pushback and availability right now that clearly launching more skus is probably not a smart move I believe there was even a 40 90 TI that was rumored that and quote unquote scrapped a 3090 at 1500 and a 4090 at 1600 although it's only a hundred dollars more but look how much faster it is realistically it was compared to the 40 or 30 90 TI at 2000 so it looks like 400 cheaper for way more performance looking at the chart you can see now that drop back down of pricing is not in reality at all well what happens when you talk about inflation here is how the prices look adjusted for inflation now adjusting for inflation in today's dollars for back then is obviously going to look very skewed because of the fact that 10 years ago dollars was 10 years ago dollars it was not affected by today's inflation so if you were to you know take a look at the pricing for current inflation you can see things were up a couple hundred bucks a couple hundred dollars clearly of accounting for inflation for 12 years ago at a couple hundred dollars is still far below the pacing of where current pricing is at today's dollars let's talk about 70 series for a second here because 70s series is where most people don't shop 80 adti or 90 cards 70 series is where most people started to consider like hey this is a high-end card it can do everything I wanted to do and it's cheaper so 1070 this is what blew my mind the Pascal 1070 was a a very very solid card the 970 that was when Nvidia really screwed up and that was with the whole four gigs was actually three and a half gigs and it was poorly marketed and 1070. I thought I even asked the team I was like how much you guys think the 1070 was when it launched people were like I don't know 4.99 500 bucks was 380 dollars you know how much is a 40 70 today 700 dollars so you talk about grooming right the 2070 was actually 499 dollars so that's a hundred and twenty dollars up from the 1070 and that was MSRP you had Founders it's another 100 bucks that's now two hundred and twenty dollars markup from one gen to the next CPUs actually are not as bad as I expected them to be from the 2700k which was the Intel gaming I5 no actually it was i7 because it was second gen i7 that's what 2700 was and then the 2500k was the four core um 2700k was 340 bucks in 2011. and the 70k or like they call it either 70 or 770k whatever um stayed around that price point 350 for uh from second gen to ninth gen that's actually not bad that that's of course Intel wasn't really expanding the core counts and stuff very much they they clearly were behind AMD during all of that so they had to stay price competitive but 2700k was 340 3770 was 342 47 70 was 350 6700k was 350 7700k was 339 8700k was 359 9700k was 374 but that's also where they introduced the I9 lineup for the mainstream CPUs and then anything I9 was usually 100 250 more so 9900k was 488 1000k with 600 1100k was 539 1290k was 650 and that's where they really tried to really push the price but they had to reduce it prior to 13th gen and 13th gen came like only months after 12th gen they reduced the price down to like 549 and then 12th gen right now 3900k is 589 but you look at the chart it actually stays pretty level and the only time you see these spikes now on the chart that was when the i9s were added so it's actually not that bad on CPU I mean if you stay with a 700k models like the 11 700k was 3.99 so we are talking about a 50 bump 10 years later which isn't that bad uh you account for inflation and you put the inflation numbers up on here you can see that it sure it jumped up across the board but then it gets very close together as we get towards today's pricing which shows that it's still accounting for inflation was was actually pretty level the pricing wasn't as bad as I expected it to be um with inflation accounted it's just as core count went up so did cost I also advised for both the industry and it has some advice for the buyer first of all the industry needs to stop hyperbolizing on top tier product there is not enough marketing around affordability there was not enough marketing around entry level price points quality at entry level price points getting people into the genre there's so many people out there that I have seen in our videos over the last year say screw it I'm just getting a PS5 or screw it I'm just getting a console I'm getting even a handheld these days if you'd stop only because the problem is everyone all these brands are competing for the top dog position it's like bragging about how expensive you are but if you want consumer trust and you want consumers to to believe in your product and that they can afford the product advertise your affordable products you'd be surprised how many consumers don't go out there and do research on lower end products or lower end tiers they do they see the ads and they they see the product that gets sent to influencers and they always want to send their best products and we've pushed back a lot saying stop sending us your super expensive motherboard send us your mid-tier send us your entry level send us your realistic products we we've we've said this for years but they want to look great against the competitor I can tell you right now you spend 800 bucks on a motherboard you've overpaid by about five hundred dollars on things you will look nice in a case and guess what once it's in there and it's on and you're doing your thing you're not going to look at it that much and you have it's not going to even grow with you because manufactured especially Intel doesn't give you more than maybe two generations worth of compatibilities you're buying a new motherboard anyway if you upgrade the system in more than one generation's past amd's giving you some more core support in terms of the socket being relevant all of am4 and then am5 is going to do the same thing but now there's rumors that am5 may not even last past next year because as you add pins you have to change the socket another LGA they're going to follow the same trap Intel pulled remember 1150 versus 1151 one pin change forcing an entire motherboard socket change the stuff's on purpose I have a little bit of advice for NVIDIA break GeForce off into its own company get GeForce out from under Jensen Jensen's true passion right now is AI and that is not gaming graphics cards sure the technology trickles down to main mainstream consumerism but the way the company is being run I think there is so much distrust amongst the brand and the consumer right now that one of the only ways in in and I'm sure sales figures don't support what I'm saying but I'm telling you right now in terms of long term brand Trust because you guys may not want to admit this but Nvidia is on very Rocky ground with the consumer they make a great product but it's overpriced and it's just they followed the Apple moniker too much of you don't know what we want or what you want we know what you want we'll tell you what you want and you're going to pay for it that's exactly how Nvidia operates and it's disgusting break GeForce off into its own company let it have true gamer leadership buy a gaming staff that understands how to run a gaming business and let true Innovation let affordability and let passion really show because I think if you ask just about any consumer today Nvidia passionate for gamers even though Nvidia tries to put that in all their marketing I bet you would hear a resounding no from anyone that you ask that's because it's so obvious that Nvidia is more interested in selling 700 marked up 100 series AI generating gpus and seventy thousand dollars a pop then giving two shits about the gaming industry and I feel like GeForce needs to be its own brand you know how AMD absorbed Radeon and bought Radeon and absorbed it into AMD I feel like it needs to be the opposite for both these Brands I feel like Radeon should be its own brand again like how when it used to be ATI in ATI Technologies and G-Force needs to be its own brand let it be under the umbrella of Nvidia so it has Nvidia money but let it operate in a true gaming passionate uh capacity last but not least the consumer the consumer Is Not Innocent in all of this there are deals out there there are there are ways to spend anywhere between 800 to 1200 on a PC and absolutely decimate anything you could have gotten for 1200 bucks 10 years ago obviously so you are getting more performance per dollar even at the low end product here line lineup than you could ever get in the past Moore's Law is still very much in effect and we have very fast very good components that exist in a very affordable price points but you're but you're you've let the marketing get to you to the point to where you don't believe it's affordable now yes inflation obviously has affected more than just this stuff and if you find yourself in a position where you're like I clearly can't buy a PC because I've got rent to pay yeah that's obviously priorities our priorities for a reason but if you're just jaded and you're tired of hearing the marketing and all that and you're just sort of like out of spite saying screw it I think you owe it to yourself to at least do a double take and make sure that you truly can't afford it because things are there are affordable options there's there is stuff with price parity on where we're used to seeing it it's just you gotta ignore all of the marketing you're gonna see and don't drink any of these Brands Kool-Aid I'm passionate about this and when I and I and I read comments and I and I empathize entirely with what people are going through and saying at pricing because I want nothing more than to everyone to share like I have a few major passions in my life cars computers in Tech and my family I'm not sharing my family with you guys and I'm not sharing my cars with you guys but computers I want everyone to be involved in this the computers are I can't tell you how many people have written me saying they were in dark places in their life and they found passions in computers and building them and tinkering with them and overclocking them and playing games and it may sound so cliche but it literally changes their lives and you may you may be missing out on that if you're not even giving it a chance because of all the that has been created in the industry by the brands themselves that's why I say the brands created this mess and now they're sitting there scratching their head going what happened anyway that's it guys I just wanted to get that off my chest I'll feel better for a couple of weeks and then I'll probably make the same video again next year or something all right guys thanks for watching we'll see you in the next one

Channel: JayzTwoCents

Views: 745,744

Keywords: computer prices, gpu prices, cpu prices, pc prices, why are pcs so expensive, why are gpus so expensive, why are cpus so expensive, nvidia, amd

Id: SA5YwIIQlAc

Length: 28min 20sec (1700 seconds)

Published: Sat Sep 16 2023