Reason For Increased Price Of GTX 1060 According To Analysts
Nvidia latest budget friendly GPU offering, GTX 1060 launched yesterday to favorable reviews. There are however some concerns about the pricing of Nvidia’s latest mainstream GPU. Not only is the card more expensive than AMD’s latest offering RX 480 but also has a launch price higher than what the previous generation GTX 960 launched with.
Now it can be argued that it is a new generation GPU so high price is to be expected but at its time, even GTX 960 was relatively new. Its 2GB model launched at 200 euros while GTX 1060 6GB is available for 279 euros which is a considerable price increase.
Some industry analysts seem to have an answer to the reason for this increase and it’s not corporate greed which many conspiracy theorists would like to believe is the reason.
According to one analyst, the 16nm wafer cost rose by 70 percent in 2016 as compared to 2015, when GTX 960 was launched. The GP106 pascal chip used in GTX 1060 is around $20 more expensive than GM206 in the Maxwell based GTX 960. This price increase of the base materials used in manufacturing is the biggest reason for the increased launch price of Nvidia’s latest GPU.
There are also other improvements made on the GTX 1060, such as increased VRAM capacity from 2GB or 6GB and improved performance, which in turn warrants at least a little bit of price increase to distinguish itself from the older generation GPU.
Currency conversion also plays a huge factor in this as Europeans have to face an unfavorable exchange rate resulting in the card being more expensive if bought in Euros instead of US dollars.
Whether Nvidia further decreases this price in the recent future or not remains to be seen but it will certainly help the company in terms of boosting sales as AMD’s counterpart, RX 480 delivers pretty much the same performance with a $40-50 less price tag.