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NVidia & ATI Price Fixing

by Steve Gibson, Dec 11, 2006 9:06am PST
Related Topics – Legal, PC, NVidia, ATI

So people have been fussy about the price of videocards at the high end being pretty darn insane these days. Apparently the prices have offended some folks so much that they decided to take NVidia and ATI (now AMD) to court over it.

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 ... The allegation is that Nvidia, ATI and AMD conspired to manipulate graphics card pricing [snip]
It goes on to saying that the two companies pretty much got together over donuts and tequila to decide on the prices to break gamers hearts. Laughing over the pain inflicted on poor people everywhere absolutely forced with no alternative to buy those $600 videocards.




Comments

17 Threads | 117 Comments










  • People still haven't gotten the point. IT IS NOT ILLEGAL TO CHARGE A LOT FOR SOMETHING! Just because something costs more than you want to pay for it, that doesn't mean that there aren't other people willing to drop the money. If ATI and nVidia charged (independently and with no illegal collusion amongst between the two) 1 million dollars to just look at the boxes their graphic cards come in, this wouldn't be illegal. People who see the rapid drop in card pricing over a year and then shout "there must be something shady going on" fail to understand the concept of DEPRECIATION. If I can sell a product for more and people are willing to pay that amount then more power to me. Simply put, things are worth what people are willing to pay for them. The question is not, "are they charging more than their cards are worth," because if they did, by definition no one would buy them. The question is: are nVidia and ATI getting together to inflate pricing above that of the natural market? I doubt it, but that has yet to be seen. It is possible, but high pricing of any product does not prove that it is, only that some people are willing to pay a lot of money for something and the rest of us have to wait around and twiddle our thumbs for that amount to drop.