Nvidia and AMD(ATI) accused of....

[Cole]

conspiracy to keep graphics pricing high
http://www.theinquirer.net/default.aspx?article=36258

A FLURRY OF ANTITRUST CLASS actions (code 410) has started in the USA against Nvidia, ATI and AMD.

It never rains but it pours, but this is a blizzard of people with many joining in an antitrust action accusing the firms of manipulating prices.

Summons were issued by one Trong Nguyen on behalf of himself and others against Nvidia, ATI, and AMD. Lots of other plaintiffs have joined in, following news that ATI and Nvidia received summons from the Department of Justice (DoJ) for unspecified reasons, as we reported on the 1st of December, here. Intel did not receive a subpoena from the DoJ. It does not make discrete graphics processor units and hasn't done for quite a while.

The allegation is that Nvidia, ATI and AMD conspired to manipulate graphics card pricing, while the filing seen by the INQ said the DoJ has demanded a heap of data going back to the late 1990s.

The allegations cite sources saying that the price points of graphics cards are practically always the same - at around $500 for the top end stuff.

The allegation is the defendants and co-conspirators "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."

Executives of the company are also alleged to have had meetings and conversations to discuss pricing of graphics processing units and cards in the US.

Further, there are allegations that the defendants concealed this behaviour, which would constitute a cartel, if a judge or the DoJ found against them. UK reps of the firms concerned could not be contacted at press time, as it is after 6PM on a Friday here. ?

I want this to be true. Why? For lowered prices!

 

[DEATHMASTER]

THOSE BASTARDS! (if it's true) I hope they lower prices if they are found guilty.

 

[Beerdude26]

If it's true, I think the companies will have to pay loads upon loads of fines, which may = no graphics cards but MATROXES.

You don't want MATROXES in your computer, do you?

 

[Stigmata]

Hmm.

In that case, Beerdude, I hope that they aren't found guilty, yet suspiciously decide to lower prices dramatically directly after the hearing.

 

[Link]

I'm willing to bet a quite substantial sum of money that whatever happens to Nvidea and ATI, there will still be decent graphics cards

 

[WhiteZero]

I hope their found guilty and are just forced to give "fair" pricing on the cards.

 

[Operational]

Graphics cards are like CPU's - the price to manufacture them has no effect on their final selling price, which is determined by market forces. Why sell 20,000 $100 graphics cards when you can sell 10,000 $500 graphics cards? "Everything is worth what its purchaser will pay for it."

 

[Asuka]

I remember reading a very good article on how much it takes to make a GFX card and how the GFX companys really dont make a insane profit. It was about how much it costs to make these cards and why they are priced so high. Dont remember where i read the article, it was very long ago. I dunno dont think this is true. This sounds like bogus.

 

[Revisedsoul]

on the other hand that could have been an article paid to be written by ati and or nvidia to make it look like it doesnt make them much money. prepare thy tinfoil hats.

 

[DEATH eVADER]

I see a re-emergence of voodoo

 

[Raziaar]

Graphics cards are like CPU's - the price to manufacture them has no effect on their final selling price, which is determined by market forces. Why sell 20,000 $100 graphics cards when you can sell 10,000 $500 graphics cards? "Everything is worth what its purchaser will pay for it."

Well... EXCEPT for the fact that if two companies meet together to fix prices, it is illegal.

 

[Nemesis6]

Stigmata said it. They deserve money for their spectacular work, but could, in my opinion, make more money if they lowered prices a little to get even more people to buy these new cards.

 

[Operational]

Well... EXCEPT for the fact that if two companies meet together to fix prices, it is illegal.

True. It will be though to prove though.

 

[nutcrackr]

for mid range products this has worked out well for consumers, if you want high end stuff though you better bring some lube.