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Is AMD or Isn't AMD Cutting Prices?

AMD Restructuring AMD Restructuring

Recently, there was a lot of buzz about the fact that AMD (NASDAQ:AMD) had been adjusting its Radeon graphics card pricing due to competition from Nvidia’s GeForce GTX 980 and 970.

Bright Side of News* ran a story about it, saying that it appeared as though AMD had been cutting the prices of its GPUs in order to be competitive with Nvidia. However, recently, AMD’s own Chief Gaming Scientist Richard Huddy refuted these claims that AMD had been cutting the prices of GPUs and that any price cuts that had been occurring were at the add-in-board partners’ own decision and behest and the company had no part in it.

However, today, AMD’s own official AMD Gaming Twitter account stated the following tweet:

As you can tell, it clearly states that AMD is “running a channel promotion on its R9 290 and 290X” and then proceeds to link to a PC Perspective article about Newegg’s new prices on AMD graphics cards. So, either things have drastically changed in the past week, or the company is simply trying to confuse us about what its actual intentions are. The company is also going to be reporting  earnings for 3Q 2014 on Thursday and the expectation is that it will perform along expectations, even though Intel beat expectations today and AMD’s share price got a nice 2% bump from Intel’s bellwether reputation for the PC industry as a whole.

The expectation is that AMD will need to produce some sort of a competitor for Nvidia’s GTX 980 and 970 because right now it appears as though AMD is going to have a very hard time selling its GPUs when compared to Nvidia’s if they don’t release anything competitive this quarter. In fact, there’s a very good chance that we won’t see any really new GPUs from AMD until next year. Also keep in mind that AMD’s Hawaii GPUs are essentially already a year old and need some refreshing at the high-end and if they continue to not deliver a new GPU every 12 months they are going to fall behind Nvidia. There’s no doubt that AMD’s Hawaii GPUs gave Nvidia a lot of competition and forced them to compete, but now the ball is in AMD’s court and they are going to have to deliver.

Now, if you head on over to Newegg, you can clearly see that the R9 290 and R9 290X have had its prices cut so that most R9 290’s are priced sub $299 and most R9 290Xs are priced at under $399. There are some obvious exceptions to this pricing, but the majority of cards are priced exactly where the original ‘rumor’ had them being cut. So, we’re not entirely sure where AMD’s messaging has gone, but they are doing a pretty good job of confusing consumers.