1
00:00:00,160 --> 00:00:06,480
it's china joy sorry

2
00:00:04,400 --> 00:00:11,360
what is china joy well apparently it's a big enough event

3
00:00:08,720 --> 00:00:14,960
for AMD to announce their latest GPU there so

4
00:00:12,719 --> 00:00:19,359
yep another graphics card no one can afford thanks to scalpers and miners or

5
00:00:18,080 --> 00:00:25,680
is it yes it is but AMD's Radeon rx 6600 xt

6
00:00:23,039 --> 00:00:30,960
announcement also gives us an excuse to talk about why pricing for these parts

7
00:00:28,080 --> 00:00:36,640
is still so outrageous and some of the big changes that could

8
00:00:33,920 --> 00:00:40,000
finally put an end to the GPU shortage in the coming months

9
00:00:38,399 --> 00:00:44,000
it also gives us an excuse to tell you about our sponsor seasonic

10
00:00:42,079 --> 00:00:48,079
never skimp on getting a quality power supply for your current or next computer

11
00:00:46,160 --> 00:00:53,879
build check out see sonic at the link below to find award-winning power

12
00:00:49,680 --> 00:00:53,879
supplies to meet your needs

13
00:01:00,160 --> 00:01:05,360
AMD's new Radeon rx 6600 xt is looking

14
00:01:03,199 --> 00:01:11,119
like a pretty standard launch so far you got 32 compute units 8 gigs of gddr6

15
00:01:08,720 --> 00:01:16,000
memory and 32 megabytes of infinity cache clock speeds are reasonably high

16
00:01:13,600 --> 00:01:20,479
and we already know that rd and a2 is a ridiculously scalable architecture

17
00:01:18,320 --> 00:01:25,360
thanks to earlier looks at their mobile parts they'll be available starting

18
00:01:22,320 --> 00:01:27,119
august 11th from third parties only no

19
00:01:25,360 --> 00:01:31,360
AMD branded card this time around although AMD says that there is a

20
00:01:29,360 --> 00:01:35,200
reference design that will likely make up the bulk of the early shipments the

21
00:01:33,200 --> 00:01:40,159
reference design calls for only a single 8-pin pci express power connector with a

22
00:01:37,360 --> 00:01:44,960
total board power of 160 watts that's not too shabby for what AMD is touting

23
00:01:42,079 --> 00:01:51,520
as a 1080p monster that beats out the rtx 3060 and pulls over double the gtx

24
00:01:48,560 --> 00:01:56,960
1060s performance and it's efficient enough to be cec compliant unlike

25
00:01:54,479 --> 00:02:00,079
certain gaming pcs from our friends at dell

26
00:01:58,719 --> 00:02:06,000
got em make sure you get subscribed by the way we have a whole video coming about that

27
00:02:04,079 --> 00:02:12,640
debacle the only problem with this announcement is that if you hated the

28
00:02:08,000 --> 00:02:16,800
rtx 3060s msrp of 329 us dollars the rx

29
00:02:12,640 --> 00:02:20,319
6600 xt's 379 dollar price tag is going

30
00:02:16,800 --> 00:02:22,480
to be even more painful it is roughly as

31
00:02:20,319 --> 00:02:26,800
fast as its price difference suggests if AMD's benchmarks are to be believed

32
00:02:24,239 --> 00:02:32,160
however so it could still end up being a great value at least by today's

33
00:02:29,520 --> 00:02:36,720
standards it's an open secret that GPU prices have been steadily rising over

34
00:02:34,400 --> 00:02:43,599
the past few generations i mean heck the gtx 1080 launched at 5.99 and the 1080

35
00:02:40,560 --> 00:02:46,239
ti a GPU that held its status as a top

36
00:02:43,599 --> 00:02:52,640
tier gaming card for over three years cost just 6.99 ah memories but

37
00:02:49,840 --> 00:02:57,120
unfortunately memories may be all there is left to that kind of pricing at least

38
00:02:54,800 --> 00:03:01,760
for the foreseeable future and trust me i hate it too

39
00:02:58,480 --> 00:03:03,680
but that's just the way it is as for why

40
00:03:01,760 --> 00:03:08,159
it's the way it is there's a litany of reasons but a few key factors stand out

41
00:03:06,080 --> 00:03:12,400
starting with of course the corporate greed angle that's been thrown around

42
00:03:09,760 --> 00:03:15,840
ever since the launch of NVIDIA's rtx 20 series

43
00:03:13,519 --> 00:03:20,319
the thing is believe it or not both NVIDIA and AMD for that matter love

44
00:03:18,319 --> 00:03:25,920
their shareholders much more than they will ever love you or me but it's also

45
00:03:23,680 --> 00:03:30,319
not the only reason there are some very real logistical problems that are

46
00:03:27,519 --> 00:03:35,120
steadily pushing pricing up as companies try to remain profitable though to be

47
00:03:32,720 --> 00:03:40,239
clear the companies i'm referring to there are not NVIDIA or AMD neither of

48
00:03:38,799 --> 00:03:45,840
which are struggling to remain profitable in fact compared to a year

49
00:03:42,640 --> 00:03:47,680
ago both of them reported nearly double

50
00:03:45,840 --> 00:03:52,480
the gaming revenue in the most recent quarter with healthy gross margins of

51
00:03:49,760 --> 00:03:58,000
anywhere from 50 to 65 so the business of designing gpus

52
00:03:55,599 --> 00:04:03,280
partnering with a chip foundry like tsmc or samsung and selling the chips to

53
00:04:00,319 --> 00:04:09,840
board partners is as healthy as ever it's the board partners folks like evga

54
00:04:06,400 --> 00:04:12,799
ASUS or MSI who are feeling the squeeze

55
00:04:09,840 --> 00:04:17,120
and passing that squeeze along to you take memory for example

56
00:04:14,560 --> 00:04:21,359
dram supply has been seriously hampered by the silicon shortage with contract

57
00:04:18,880 --> 00:04:26,560
pricing going up by 5 to 10 in the first quarter of this year then a

58
00:04:23,840 --> 00:04:31,680
staggering 20 to 25 in the second quarter with a projected

59
00:04:28,720 --> 00:04:36,800
eight to 13 percent more again coming in the third quarter that is over a 50

60
00:04:34,960 --> 00:04:42,479
cumulative increase in the price since the end of 2020 and spa prices have been

61
00:04:40,240 --> 00:04:46,880
consistently worse with current prices sitting at easily double the contract

62
00:04:44,800 --> 00:04:52,800
price and trend for saying that at the scalp apocalypse's peak spot prices were

63
00:04:49,840 --> 00:04:58,880
up as much as 200 percent higher than contract pricing which is

64
00:04:55,199 --> 00:05:01,759
wow so that is why NVIDIA can the

65
00:04:58,880 --> 00:05:05,680
rumored high memory rtx 30 series eh at least for now

66
00:05:03,040 --> 00:05:11,280
and this isn't likely to let up demand from game consoles and gpus remains high

67
00:05:09,199 --> 00:05:17,680
and the realities of wafer production mean that eight gigabit and 16 gigabit

68
00:05:14,080 --> 00:05:20,639
gddr6 chips need separate allocations

69
00:05:17,680 --> 00:05:24,880
so this crucial manufacturing capacity is split

70
00:05:22,000 --> 00:05:29,360
the consoles use 16 gigabit chips while consumer gpus currently use eight

71
00:05:26,960 --> 00:05:34,000
gigabit chips and the majority of eight gigabit capacity is reportedly feeding

72
00:05:31,520 --> 00:05:37,919
NVIDIA's lower end 30 series gpus which leaves

73
00:05:35,039 --> 00:05:43,280
very little on the bone for anyone else thankfully the 6600xt is going to be

74
00:05:40,479 --> 00:05:48,479
using 16 gigabit chips so for this launch anyway it's less of a concern

75
00:05:46,240 --> 00:05:53,280
the final dram factor though is somewhat unexpected and it's servers

76
00:05:50,960 --> 00:05:59,600
that's right this whole thing is colliding with a big boom in server

77
00:05:55,840 --> 00:06:02,000
orders and servers they need dram lots

78
00:05:59,600 --> 00:06:06,319
and lots of dram and all of that is just the memory next

79
00:06:04,319 --> 00:06:10,240
up we've got copper you know that stuff that good heat sinks are made of among

80
00:06:08,160 --> 00:06:15,440
other things well copper's gone from a little under two dollars twenty cents

81
00:06:12,240 --> 00:06:17,520
per pound in mid 2020 to double that as

82
00:06:15,440 --> 00:06:21,840
of today and a lot of that has to do with speculation that a global economic

83
00:06:19,759 --> 00:06:24,720
rebound will boost demand for metals used in manufacturing and in

84
00:06:23,440 --> 00:06:29,759
construction if that sounds like it'll impact a lot more than copper

85
00:06:27,680 --> 00:06:34,400
you're right aluminum prices are skyrocketing they're up about 45 since

86
00:06:32,240 --> 00:06:40,560
this time last year steel and nickel are up nearly 30 percent plastics are up 47

87
00:06:38,160 --> 00:06:46,080
and neodymium which is used for magnets in fans and headphones is up a

88
00:06:42,720 --> 00:06:49,680
staggering 88 even tin and lead which

89
00:06:46,080 --> 00:06:51,919
make up solder are up nearly 36 and 14

90
00:06:49,680 --> 00:06:57,680
respectively so all of that means that virtually every material that goes into

91
00:06:54,880 --> 00:07:02,880
producing a GPU or really any consumer electronics is significantly more

92
00:07:00,000 --> 00:07:09,199
expensive than it was just a year ago with the sole exception being gold

93
00:07:09,199 --> 00:07:14,319
and the fun keeps coming if you're a us resident and the GPU that you want is

94
00:07:12,960 --> 00:07:20,800
made in china tariffs are famously misrepresented by

95
00:07:18,080 --> 00:07:27,680
politicians and enthusiasts alike but the tldr is u.s consumers get to pay the

96
00:07:23,919 --> 00:07:29,520
u.s government between 10 to 25 more for

97
00:07:27,680 --> 00:07:36,000
electronics manufactured in china right now which as of the end of 2020 has gpus

98
00:07:32,960 --> 00:07:37,319
falling in that 25 bracket

99
00:07:36,000 --> 00:07:41,520
there's no tariffs on merch from lttstore.com though so buy a t-shirt

100
00:07:39,759 --> 00:07:45,199
like this one and you'll be amazed how many fellow tech fans approach you to

101
00:07:43,199 --> 00:07:50,000
talk shop it's actually kind of great the final head of the GPU pricing hydra

102
00:07:47,360 --> 00:07:54,000
is of course the silicon shortage itself now we can see from AMD and NVIDIA's

103
00:07:52,240 --> 00:07:56,960
financial reporting that they've been telling the truth all along

104
00:07:56,000 --> 00:08:02,800
sort of like clearly they are producing plenty

105
00:07:59,919 --> 00:08:07,759
of gpus but even if we account for NVIDIA taking on average 10 more profit

106
00:08:05,440 --> 00:08:13,360
margin than they did in 2015 both of them are experiencing clearly

107
00:08:10,520 --> 00:08:16,879
unprecedented levels of demand and when demand goes up

108
00:08:14,879 --> 00:08:20,479
pricing goes up this shortage is affecting industries

109
00:08:18,639 --> 00:08:25,440
everywhere from electronics all the way to automobiles and recent reports show

110
00:08:22,800 --> 00:08:29,680
that even apple who to date has seemed relatively insulated thanks to their

111
00:08:27,680 --> 00:08:33,839
careful production forecasting is starting to feel the crunch

112
00:08:31,520 --> 00:08:39,279
AMD's dr lisa said during an interview with behrens that supply is expected to

113
00:08:36,000 --> 00:08:41,760
remain quite tight until 2022 and while

114
00:08:39,279 --> 00:08:46,880
AMD may be making inroads on supply the silicon shortage as a whole is likely to

115
00:08:44,320 --> 00:08:53,200
continue well into next year thanks to the disruptions that covet has caused in

116
00:08:49,760 --> 00:08:55,600
labor logistics and materials

117
00:08:53,200 --> 00:08:59,120
thankfully taiwan's worst drought on record did let up in late june which

118
00:08:57,680 --> 00:09:03,839
should take some of the pressure off of tsmc who happens to be the world's

119
00:09:01,440 --> 00:09:08,640
largest chip foundry in other good news for consumers looking to buy a GPU one

120
00:09:06,160 --> 00:09:13,519
of the major factors influencing demand for these processors mining has begun to

121
00:09:11,839 --> 00:09:16,640
wane in recent weeks following crackdowns on crypto mining by the

122
00:09:15,200 --> 00:09:21,360
chinese government since crypto's pricing began to fall in

123
00:09:18,560 --> 00:09:27,440
early may gpus have at least begun to experience a slow return to normal as

124
00:09:24,320 --> 00:09:30,000
miners have begun fire sailing gpus in

125
00:09:27,440 --> 00:09:34,080
the chinese market although pent-up demand from gamers means that prices are

126
00:09:32,240 --> 00:09:39,200
likely to remain high for the foreseeable future that is until we get

127
00:09:36,880 --> 00:09:43,440
a mainstream GPU that is shipping in serious enough volume to put enough

128
00:09:41,279 --> 00:09:46,160
cards in gamers hands that it puts pricing pressure on the more premium

129
00:09:45,200 --> 00:09:53,120
ones get subscribed then by the way so you don't miss our review of the rx 6600 xt

130
00:09:50,800 --> 00:09:59,120
when it launches it's based on AMD's navi 23 die which should mean better

131
00:09:55,920 --> 00:10:01,760
yields per wafer helping to chip away

132
00:09:59,120 --> 00:10:05,680
pun intended at the supply constraints that is assuming it ends up being a

133
00:10:03,519 --> 00:10:10,240
solid card now at this point in the video you might have noticed that i

134
00:10:07,920 --> 00:10:14,720
didn't ever offer an opinion on the state of the gaming GPU market that's

135
00:10:12,480 --> 00:10:17,839
because in my opinion it doesn't matter what i think

136
00:10:16,640 --> 00:10:22,880
that's the hottest take you're going to get for me today the unfortunate facts

137
00:10:21,200 --> 00:10:28,240
are that there is little that can be done about GPU pricing right now but the

138
00:10:26,000 --> 00:10:32,320
good news is that once economic recovery efforts are in full swing demand for raw

139
00:10:30,240 --> 00:10:36,240
materials should begin to fall off and with any luck we'll be able to live in a

140
00:10:33,920 --> 00:10:39,200
world where the fun comes back into pc building

141
00:10:37,279 --> 00:10:43,600
you could try to accelerate the end of the ride by keeping your money in your

142
00:10:40,640 --> 00:10:47,519
pocket when the 6600 xt briefly hits store shelves

143
00:10:44,880 --> 00:10:52,160
but truthfully it probably won't change anything just like i never changed the

144
00:10:50,320 --> 00:10:57,440
segways to my sponsors not even to build redux thanks redux for

145
00:10:55,440 --> 00:11:02,480
sponsoring this video redux offers hardware with no markup pricing so you

146
00:10:59,920 --> 00:11:07,200
pay only the 75 build fee and then whatever you already would have spent to

147
00:11:04,320 --> 00:11:11,279
get the parts plus with redux you get a two year warranty for the parts and

148
00:11:08,880 --> 00:11:15,440
labor on your expertly built pc use their online pc builder to customize

149
00:11:13,600 --> 00:11:20,160
what's going inside based on the games you want to play and your budget and

150
00:11:17,519 --> 00:11:23,920
that's it it really is that simple redux wants to bring pc gaming to the masses

151
00:11:22,000 --> 00:11:27,600
which is why they only charge a small build fee and they don't cut corners on

152
00:11:26,079 --> 00:11:31,040
quality so click the link in the description to create your dream pc

153
00:11:30,000 --> 00:11:37,279
today while you're down there maybe check out our recent video on NVIDIA actually

154
00:11:35,079 --> 00:11:41,360
discontinuing support for their kepler gpus and whether you really need to

155
00:11:40,000 --> 00:11:45,760
upgrade it's kind of a strange sentence to say

156
00:11:43,600 --> 00:11:49,440
about a GPU that first launched nine years ago

157
00:11:47,120 --> 00:11:55,279
man another nine years that's you go back nine more years

158
00:11:50,720 --> 00:11:55,279
that's GeForce four isn't that crazy