NVIDIA, AMD in hot water for potential price fixing

Hoo boy, this could be a nasty one. You know how NVIDIA and AMD got slapped with those federal subpoenas a week ago? At the time, no one was sure what the DoJ was getting at, but apparently it wasn't just to look at the pretty graphics these firms churn out. Turns out NVIDIA, AMD and ATI have been accused of some antitrust shenanigans, with the DoJ alleging the firms "have engaged in a contract combination, trust or conspiracy, the effect of which was to raise the prices at which they sold graphics processing units and cards to artificially inflated levels." We're not so sure that the main argument -- that graphics card prices are almost always the same, reaching around $500 in the high end -- will hold a lot of water, given the specs pumping nature of the graphics card biz, but allegations of secret meetings between graphics card execs to discuss pricing could be a bit more damning. The DoJ is requesting documents as far back as 1990, so this could get messy. Intel has managed to steer clear of this whole cartel fiasco, thanks to its lack of a discrete graphics biz, but we're sure they're totally jealous right now -- perhaps they'll buy NVIDIA just to join in on the fun.

[Thanks, Mack S.]

[SomeGuy @ Dec 8th 2006 10:51PM]

Wow, things just keep getting worst for AMD and better for Intel.

[FrankTheCrank @ Dec 8th 2006 10:53PM]

SCUMBAGS!!!

Hey NVIDIA...GO F YOURSELF..

Hey ATI...GO F YOURSELF..

Once again, coporate America taking advantage of people. Rise up sheeples!!

[rockintom99 @ Dec 9th 2006 10:51AM]

Just... Shut up.

[Sean Benton @ Dec 8th 2006 11:37PM]

Or corporate Canada (ATI)...

[Sean Benton @ Dec 8th 2006 11:35PM]

This cases are hardly ever cut and dry. It's almost always somewhere between tacit collusion ("price leadership", legal) and a cartel. They will argue their case, get slapped with a fine, and none of us will ever see a dime.

[gsaj @ Dec 9th 2006 12:28AM]

Actually, it would appear Intel is seriously getting into the graphics arena according to this - so don't expect an NVidia buyouy/deeper-partnership any time soon!
http://osnews.com/comment.php?news_id=16669

[Eh @ Dec 9th 2006 1:34AM]

Hell yes, maybe PC gaming costs will become more intune with console gaming.

[Rusty @ Dec 9th 2006 1:54AM]

if people wouldn't pay 500 bucks for a video card, then the price would come down. It's basic supply and demand. If there is no demand, the price comes down.

[Juaquin @ Dec 9th 2006 3:06AM]

Or they just don't sell it at all because they don't have huge margins on those chips anyways. You can't expect that kind of performance for $200.

[bignumone @ Dec 9th 2006 4:53AM]

That makes no sense. They won't make the cards at all because of the low margins...price fixing usually raises the margins beyond reason.
These chips now cost a few bucks to churn out.
I agree with the supply and demand guy. Prices come down when you won't pay the high price.

Don't be a sap and believe everything you are told.

[Juaquin @ Dec 9th 2006 3:08AM]

I hope this lowers the prices - I'm looking for a new card withing the next few months. Great timing DOJ!

[Maff @ Dec 9th 2006 6:23AM]

what's the now defunct boy band "Busted" got to do with this?
why use their album cover as a picture?

am sure other UK readers may be wondering this too!

are you all Matt Willis fans really?
was it you lot that voted him King of the Jungle?

[mchang227 @ Dec 9th 2006 6:43AM]

Well...its really not that surprising. if i were part of the only two firms that created the supply of a product that the whole of the population chooses --no..i correct myself-- if practically forced into buying with the demand created by games and graphic design, who wouldn't want to make the extra bucks.

[erikig @ Dec 9th 2006 7:04AM]

Lol, I hope each uses the "Everyone was doing it" defense i.e.

ATI: We only did it because NVIDIA was doing it
NVIDIA: Well, ATI came out with their cards which were better, so we had to do it to make our cards look as good...

[LIGHTNING @ Dec 9th 2006 8:00AM]

No wonder i have to work 2 months to get a good card...

[davin @ Dec 9th 2006 10:22AM]

I knew there was a reason I should've waited to build my machine.

[SporkRocker @ Dec 9th 2006 3:48PM]

I partially agree with the supply and demand guy. They do need to make money to widen their pockets and possibly engineer new chips,etc.

I do not agree, with how high they set the bar. 700-800 for a new video card? While a Xbox,360, Ps2 and Ps3, maybe even a Wii, can offer what they are offering with that insane amount of price. (My comparison my be unreasonable with Xbox,Ps2, and Wii in their, if it bothers you, ignore it.) Everyone who is "Pc Gamer" likes to have the power to even a play game and not worry about playing the low setting everytime. Is this a reason why Pc gaming has been dying? Buy one console every 3-5 years? Compared to the PC standard 1-2 years which is most of the time double to quadruple times the amount.

The bar they set is often too unreasonably high. It doesn't cost that much to manufacture the chip/card. Doesn't take that long to even manufacture them. The Playstation 3 is in such limited demand besides of the flippers(who are thinking if they put one up on ebay they'll get one...lawl.) is the manufacturing of the blu-ray dioide laser. That is understandable for the PS3 seeing how they lose 200 per system. You don't see Sony magnifying the price of their system, because of limited quantities.(I wish they did, instead of letting the moron flippers do it for them.)

I don't think Ati/Amd/Nvidia really lose anything from a profit well maybe from their older older series of cards. I know nothing about manufacturing a graphics card but i know some of the components they use isn't. Cheap form of gold(conductivity), plastic, aluminum, some metal maybe iron-steel?, and etc

I'm still running a Geforce 6 series and it is ridiculous that I can't some of the games that are in beta testing or even games that have been released. I don't not have that kind of money being at college.

[754Boy @ Dec 9th 2006 6:42PM]

I hope this means lower prices!!!!

[moofree @ Dec 9th 2006 9:44PM]

I hope the government mandates a price cut.
I'll SLI my 7900GT.

And a price fixing refund check to customers would be nifty too. :)

[Phred @ Dec 10th 2006 10:55AM]

It is far more likely that this involves OEMs rather than consumers. The companies stand to make a lot more money if they agree to a floor for low-end high-volume graphics chips they sell to Dell or HP.

[NewMaxx @ Dec 10th 2006 6:25PM]

"It's basic supply and demand"

This doesn't apply when dealing with artifical supply (fixed pricing). Check out diamonds and the De Beers relationship with the DoJ...or the DRAM fiasco.