There’s a lot of buzz around the gaming PC market right now, and it has nothing to do with how much graphics horsepower we can expect next year. Many people are asking: Why are all gaming PCs sold out? And why is the cost of a new GPU so high?
Does this mean there won’t be enough supply for the demand that will come in 2018? Perhaps it means an end to cheap prebuilt systems for good. We’ll explore these questions, as well as debunk some myths about why you can’t get your hands on a new $700 gaming desktop. It comes down to inventory management.
There are many reasons why PCs are out of stock, and it doesn’t have to do with supply. Why are all gaming PCs sold out? Demand is high because graphics card prices are so high. Gaming PCs have a low turnover rate, so inventory depletes slowly. Prebuilt PCs are more expensive than they used to be.
What’s Causing The Shortage?
The increase in demand, and decrease in supply causes shortages. As we’ve seen, many factors are contributing to the gaming PC shortage. Prior to the launch of this console, the demand for gaming PCs was actually declining, with many people choosing to buy Nintendo consoles rather than a traditional PC.
But since the launch of the Switch, the demand for gaming PCs has spiked, creating the shortage we see today. Many PC manufacturers were caught off guard by the sudden increase in demand and simply weren’t prepared for it.
This is reflected in the price of new gaming PCs, which has increased as manufacturers attempt to recoup the costs of dealing with the shortage.
What is Driving the Increase in PC Gaming Demand?
The demand for gaming PCs has increased in the last few years, due to rising internet connectivity and smartphones. Unlike consoles that remain relatively stagnant for several years until a major upgrade cycle, PC gaming is constantly evolving with new games and technology.
This demand has led to more and more people investing in their own high-end gaming PC instead of waiting around for the next generation console. This is especially true for people who like having total control over the performance of their system.
Related Article: Can gaming PCs be used for other things?
Is There a Shortage of Gaming PCs Due to High Demand?
The cause for today’s PC component shortage is many sided. Some people believe there’s a shortage of gaming PCs due to high demand. But this is not the case. There’s just a lack of inventory because many vendors are holding their stock for new models coming in 2018.
In other words, it takes time to order parts and build new gaming PCs, which contributes to high demand and low availability rates. However, there’s hope for those who can’t get their hands on a $700 gaming desktop.
Most companies will resume production after the holiday season and deliver new inventory in December 2017 or January 2018. Once these new models arrive, companies will have enough inventory of pre-built systems for both current and future customers.
What Can We Expect From 2018’s Games and PCs?
Earlier this year, there were a lot of rumors about 2018’s PC games and hardware. Some people believed that we’d see prebuilt PCs with NVIDIA’s newest RTX GPUs, while others thought these cards would only be available in expensive custom rigs. It turns out that both of these statements are true.
The Nvidia GeForce RTX 2080 Ti will release in September 2018 and it won’t be cheap. It starts at $1,199 for the Founder’s Edition card, and it goes up from there depending on the features you want in your GPU. So what can we expect from 2018’s PC games and hardware?
For one thing, we can expect to see more prebuilt gaming PCs than ever before. With RTX cards now available for purchase, many companies have been trying to acquire inventory for their next-generation systems. But inventory is low and consoles are still selling like crazy– so most of these desirable gaming PCs are sold out for now.
The Cost of GPUs Is Increasing Due to a Shortage of Supply
GPUs are in high demand and short supply, with the price of a new GPU going up and the cost of prebuilt gaming PCs going up to compensate. If you’ve been looking to buy a new PC this year, you may have been noticing higher prices on components like graphics cards.
Some retailers have increased their prices by as much as $300 to account for the inflated cost of GPUs. Nvidia has been blamed for this shortage, as they’ve increased production of their Pascal-based GTX 10 series GPUs while cutting back on lower end products like GTX 9200 and GTX 6XX series cards because they’re facing difficulties meeting demand for their more powerful GPUs.
As a result, many people are complaining that retailers are gouging customers. But most retailers will tell you that these price increases are necessary due to an inventory management issue. Why? When it comes to inventory, there is a difference between what you can order from suppliers and how many units come in stock at any given time in your warehouse or retail store.
Why Does it Matter That There’s a Shortage of PCs?
It’s not uncommon for the PC market to go through shortages. In fact, it happens every year. What’s different about this shortage is that many of the available machines are bare-bones and outdated. The gaming PC market is also in a weird place right now because there are newer options and people are afraid they won’t be able to get one in time for the holiday season.
The gaming PC shortage isn’t as bad as it seems, but it does matter that you can’t find one at your local electronics store. There will be shortages everywhere and if you want a machine now, you may have to spend more than $1,000 on a laptop or desktop.
Doesn’t This Mean We Won’t Have Enough Supply for Demand?
One worry is that we’ll have a shortage of components for gaming PCs in 2018. To be clear, the concern is not about CPUs, RAM, or SSDs. That would be a legitimate concern if it was next year, but these are all well stocked at the moment. Instead, many people are worried about Nvidia’s GeForce GTX 10 series GPUs.
Inventory management could be at play here as well. If there is any truth to the rumors of a GPU shortage ahead of next year, then it’s possible that retailers are keeping their current stock in-house to sell closer to launch time out of fear that customers won’t want their older-generation hardware for long after stocks run out (or because they’re not sure how much inventory they’ll need).
But realistically, I think we can safely say there will be enough supply for demand in 2018—for graphics cards and everything else you might need for your dream gaming computer.
What Can We Expect from PC Builders in 2018?
The gaming PC market has been expanding at a steady rate for the past decade, and it’s showing no signs of slowing down. It’s not uncommon to walk into a local electronics store and see rows of powerful prebuilt systems that would give any PC gamer a heart attack.
As we head into 2018, we’re going to see the same trend continue. But with growing demand, one can’t help but wonder if there will be enough supply to meet that demand. And this is where things start to get interesting. The fact is, many people are worried about the GPU market from next year onwards as Nvidia has announced plans to reduce production on GPUs in favor of more profitable endeavors.
What does this mean for gamers? It means that you won’t have as many options when choosing your next graphics card and prices are likely going up in turn. However, there may be hope yet! Suppliers have stated their intentions to increase production in preparation for what will happen next year.
In addition, AMD’s stock price has risen by over 40% in response to fears of Nvidia reducing its GPU production. And as a result of AMD’s growth, they’ve begun increasing their GPU production even further! This is excellent news for gamers who want more than just an Intel CPU inside their rigs — especially considering how much power those CPUs lack compared to high-end GPUs today (think 10x).
Should You Buy a Prebuilt Gaming Computer?
If you’re looking for a gaming desktop, be prepared to do some research. According to PC Gamer, there are now only a handful of prebuilt options worth buying. This is because most manufacturers have been focusing on their laptops and 2-in-1 devices for most of the last year.
However, if you still want a prebuilt system from an established manufacturer, then Dell offers one with a GTX 1060 graphics card for $849 or less. You can also find one from HP on sale starting at $599. Another option is to build your own gaming rig.
If you have the knowledge and skill (or are willing to learn), you can put together your own high-end PC for about $700 – and it will outperform any prebuilt model on the market right now.
Shortage of GPUs
As some of you may know, GPUs have largely been responsible for the incredible growth in PC gaming over the last few years. Unlike PCs that use integrated graphics solutions, a GPU is designed to accelerate game rendering by taking on most of the work.
This allows them to push much higher frame rates and better quality visuals than their integrated counterparts. But not all GPUs are created equal. More expensive cards offer more power and will outperform cheaper ones. And unfortunately, there’s been a shortage of these more powerful cards lately which has caused prices to skyrocket.
Rising cost of GPUs
PC gaming has been on an upswing for the past few years, and we’re expecting a huge boom in demand in 2018. But with the price of high-end GPUs climbing to unprecedented heights, many gamers are worried that they might not be able to afford their new system next year. But why has the cost of a GPU increased so drastically?
First off, it’s important to differentiate between the two types of GPUs: those used for mining cryptocurrency and those intended for PC gaming. The cost of Radeon and Nvidia graphics cards (the type typically used for mining) has gone up because there is such intense demand from miners all over the world. This means that there’s less supply available for PC gamers.
And it doesn’t look like there will be any relief soon. Cryptocurrency mining operations are only going to get bigger as more people become aware of this lucrative revenue stream, so if you don’t want to pay a premium price out of pocket, consider investing in Bitcoin today.
The Rise of eSports and Streaming
The gaming industry is still growing, and that means that there are plenty of new customers coming into the market. But it also means that there are more customers for gaming PCs than ever before, which is causing a shortage in supply. However, there are two other factors that have an even greater effect on the shortage.
The first is the rise of eSports. eSports events are now watched by millions of people, generating a huge amount of revenue for the industry. This has led to a huge investment in the industry, particularly in the streaming technology used to broadcast these events.
Streaming companies like Amazon and Google have invested billions in the technology, which has in turn caused a huge increase in the demand for high-quality computers. The second is the increasing popularity of live-streaming and video recording on Twitch and YouTube.
As the number of people sharing their gaming experiences online increases, the demand for PCs with the power to run high-end games increases. As a result, the market for gaming PCs is expected to rise to $35 billion by the end of 2020.
What does it mean for the future of gaming PCs?
If you love gaming on PCs and are worried that the shortage will signal a move to consoles, don’t be. While the shortage is a real issue, it is expected to last for the next 18 months. By that time, PC manufacturers are expected to have increased their production enough to meet the demand.
However, the shortage does mean that there are some great deals to be had on gaming PCs right now. As production begins to increase, it will force the manufacturers to look for ways to cut costs. This means that the price of gaming PCs will eventually begin to drop again. While there will no doubt be another shortage in the future, it will almost certainly be followed by another price drop.
Will more manufacturers enter the market?
The question of whether or not more manufacturers will enter the market is difficult to answer. After all, it’s possible that the increased demand has already put a strain on the manufacturers currently producing gaming PCs. It’s also possible that the large gaming PC manufacturers are already producing gaming PC’s at maximum capacity, making it difficult for them to increase the amount of products they produce.
On the other hand, more manufacturers could enter the market at any time. After all, there’s a significant amount of money to be made in the gaming PC market, and that money is likely still on the table for the company that can solve the current shortage.
Why are all gaming PCs sold out?
The demand for gaming PCs spiked in recent months, and the supply is not keeping up.
What’s Causing The Shortage?
The main cause of the shortage is a combination of factors, including the increased popularity of gaming PCs and the sudden increase in demand.
Will more manufacturers enter the market?
The question of whether or not more manufacturers will enter the market is difficult to answer. After all, it’s possible that the increased demand has already put a strain on the manufacturers currently producing gaming PCs.
Is the cost of a new GPU spiking?
No, it’s only the price of graphics cards that have been spiking due to demand. The prices of GPUs will eventually go back down.
Does this mean there won’t be enough supply for the demand that will come in 2018?
No, it just means that there are more people buying GPUs than anticipated in advance.
One of the major reasons for the shortage of gaming PCs is the increased demand and a limited supply of GPUs. With the release of highly anticipated games such as Red Dead Redemption 2 and Call of Duty: Black Ops 4, PC gamers are rushing to get their hands on the latest hardware.
But with limited supply, gamers are finding themselves paying higher prices for PCs or settling for lower-quality gaming rigs. PC gamers are not the only ones feeling the crunch.
Hardware manufacturers are feeling it too. Manufacturers are blaming GPU manufacturers, who are in turn blaming chip manufacturers, who are in turn blaming scarce resources and high demand.
At this point, it’s unclear what will happen to prices and availability of PCs in 2018. But one thing is certain: the increased demand for gaming PCs is driving up prices and putting pressure on manufacturers to increase production. I hope that this article was able to answer your questions about why gaming PCs are sold out.