NVIDIA is currently offering discounts of 10% to 20% to graphics card makers, they are aiming to clear out several million graphics processing units (GPUs) from their inventory before the end of the first quarter of fiscal 2005, which ens April 30.
The total GPU inventory to be liquidated by NVIDIA has a value of approx. $80 million. In the past fiscal years NVIDIA cleared out about $50 million worth of GPUs.
Officials at Nvidia Taiwan declined to comment on the pricing, but stated that the supply-and-demand situation of its chips remains normal.
Among one of the preferential packages Nvidia is offering till the end of this month, the GeForce FX5200 will be bundled with the GeForce FX5700LE for just US$87, an approximate 10% off their combined normal prices.
While the sell-off is expected to help Nvidia consolidate its market share, the move will also help Taiwanese graphic card makers lower their production costs, which have recently been pushed up due to rising DRAM prices, said the sources.
However, some card makers are also concerned that the ample supply of GPUs may flare up makers’ demand for DRAM and therefore, push up DRAM prices further.