AMD Prioritizes RX 9070 XT Over Non-XT for Pricing Strategy
▼ Summary
– AMD’s strategy for its upcoming RDNA 4 GPUs, like NVIDIA’s, may involve prioritizing more profitable models, such as the Radeon RX 9070 XT, over others to manage costs.
– A reported DRAM shortage is causing price increases for GPUs, making it difficult to sell higher-VRAM models like the 16 GB variants at their previous prices.
– The Radeon RX 9070 XT is easier for AMD to adjust for cost increases because it already sells at a higher price point, unlike its non-XT sibling.
– Production focus is shifting toward the Radeon RX 9070 XT, which may lead to fewer units of the standard RX 9070 being manufactured.
– While AMD has stated it will try to absorb rising memory costs, historical trends suggest companies often prioritize higher profit margins over passing savings to consumers.
The graphics card market faces a new wave of pricing pressures, with memory costs directly influencing which models manufacturers choose to produce. A recent report suggests AMD is strategically shifting its production focus toward the higher-margin Radeon RX 9070 XT at the expense of the standard RX 9070. This move appears designed to help the company manage rising DRAM expenses more effectively, mirroring strategies other industry players might also employ.
According to the information, the flagship RDNA 4 GPU, the Radeon RX 9070 XT, struggled for months to reach its official manufacturer’s suggested retail price. Once it did, the achievement was short-lived. Widespread DRAM shortages quickly led to price increases across the entire GPU landscape, impacting all RDNA 4 models. The current lineup includes three models featuring 16 GB of GDDR6 memory, a specification that has become highly attractive to gamers. However, the ongoing memory crisis makes it financially challenging for companies to sell these higher-VRAM cards at previously established prices.
This economic reality is reshaping production plans. While manufacturing of the standard Radeon RX 9070 is not expected to stop entirely, the primary emphasis is now reportedly on its more powerful XT sibling. Producing more of the higher-end model could help minimize future price adjustments. Since the fastest Radeon model already commands a premium, it has more built-in margin to absorb increases in component costs without drastic sticker price changes. In contrast, the non-XT variant reached its MSRP much earlier, leaving less room for such financial maneuvering and making it a less favorable product for AMD under current conditions.
The rationale is straightforward: the XT model’s higher initial selling price provides a buffer against rising memory costs. The RX 9070 XT has consistently sold within a $650 to $800 range, whereas the standard model settled at a lower price point. This difference means AMD can more easily accommodate increased DRAM expenses on the premium card without immediately passing the full cost onto consumers or severely cutting into profits. Meanwhile, other cards in the lineup, like the Radeon RX 9060 XT 16GB, occupy a unique position without direct alternatives, likely ensuring their continued production despite cost pressures.
Industry observers note that while companies often promise to absorb cost increases to protect customers, historical patterns show they rarely bypass opportunities to safeguard or improve their profit margins. This reported production shift highlights the delicate balance GPU makers must strike between market competitiveness and financial viability in a volatile component market. The strategy underscores how supply chain economics can directly determine which products receive priority on factory assembly lines, ultimately influencing what ends up on store shelves for consumers.
(Source: wccftech)
