Originally Posted by bucdan
After seeing the 470 release, they really missed it; the whole marketing team and those that set MAP should be fired; it seems that they didn't account for AIB sale numbers and retailer sale prices.
Too much overlap between the 470 and the 480. AIB 470 vs Reference 480, or not, it's too close in pricing. The 4GB 480 should've never existed. It Should've been the 8GB 480 Reference for $229, then AIBs will make it $259. The 4GB 470 reference would've sat perfectly at $169, with AIBs, making it $199. Then you have your niche 470 8GB that would be a free for all for AIBs, but odds are that they wouldn't make it because the 8GB 480 exists for a little more.
AMD has their pricing structure plan all wacked out. Either they didn't plan for distribution and sale prices, or they're not stepping on the throats of AIBs and etailers to control pricing to make a more attractive market. Nvidia on the other hand, has a great pricing structure (although over priced, because they can right now) for every model, and even leaving gaps for ti models (A 1060 ti will exist, the price gap and performance between the 1070 and 1060 is too much to not release another card there).
From the looks of it, the PowerColor RX 470 4 GB is the winner for this family of cards.
DAMN that mining farm. So it's that bastard that's buying up all of the cards lol. Damn miners.
What likely happened is AMD was shocked by the price to performance of what was supposedly a gtx 1070 that was 50% faster than an rx480 at a supposed $379.
At this point AMD knew the max they could sell their card for 249, but knowing how Nvidia cards are configured, they knew a 1060 was likely to come out at a very competitive price with the rx480.
But AMD knew they needed to launch to gain back marketshare and had to do this even at the cost of profits. What originally AMD wanted to do is launch the rx480 at 300 dollars or so. But with the 1070 pricing(the marketed price, AMD could not anticipate the FE Gouge), they couldn't launch it at that price and had to lower it to 239.99. However, because Nvidia was going to launch the 1060 much sooner than they initially thought, even the rx 480 8gb wasn't a good enough value proposition. Internally, you could predict, the 1060 was going to perform about 8 percent better with a price around 249.99 and when you add the nvidia brand, it will out compete the rx 480 at 239.99. So what AMD did to counter this was launch the rx480 4gb at 199.99.
You could tell this was a last minute change because all initial cards had 8gb of 2ghz ddr5 on it. This was not initially planned. However this would cause chaos and cannibalization with the rest of AMD lineup. And that's exactly happened, basically because of the high cost of finfet, AMD was in a dilemma. Basically for the rest of the rx series pricing to make sense, AMD would have to price their products below cost or basically have products with bad price to performance compared to the rx480 4gb. The latter is what is happening.
The same thing is going to happen with the rx460 as well. It's going to have 35-40% of the performance of the rx480 4gb but it will be price only 50 to 60% of the cost.
AMD pricing structure is all messed up and anyone that knows about product segmentation and product lines, knows you don't price your products so close together to cause confusion and cannibalization of sales. The worst thing is, the rx 480 4gb is likely going to be the most desired product from AMD lineup and yet it is going to have the lowest potential sales volume because its requires a full working Polaris die and AMD doesn't want to to sell it because the 8gb version is more profitable.
Pricing the rx470 at 150 is simply unprofitable and AMD can't afford to take the hit. AMD is lucky mining is going on right now, otherwise these rx 470's wouldn't sell at their msrp.
Originally Posted by KarathKasun
4gb RX 480 @ $199 was reference, 4gb RX 470 @ $199 is not. If a custom RX 470 performs like the RX 480 4gb reference card and is more available, how is it not a winner?
You answered your own question unintentionally. Basically when two different products that perform sort of the same depending on the AIB, with very similar pricing, you have cannibalization of sales. When the pricing is this close a rx 480 4gb sale is the lost sale of an rx 470 and an rx470 sale is potentially a lost rx 480 4gb sale. You want distinct pricing and performance to segment the market to expand your potential revenue. Targeting the same segment with two different chips that serve the same purpose is a waste and causes confusion in the marketplace.Edited by tajoh111 - 8/4/16 at 1:49pm