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  • Xavier Cullen

Nvidia ramps up GPU production for gaming as gamers spend more on PC hardware

Updated: Mar 16, 2022

Nvidia's graphics processing units have been in short supply recently. But that could all change. (Image by Nvidia)

If you’ve been in the market for a new graphics processing unit (GPU) recently, chances are you know that there is a severe lack of availability for high-end products.

While hardware manufacturers like Nvidia produced less units due to the COVID-19 pandemic, scalpers and cryptocurrency miners have been buying whatever stock there is.

On top of that, gamers have been spending more money on computer hardware than ever before. According to The NPD Group, U.S. consumers spent 25% more on PC gaming hardware and accessories in 2021, totalling 5.74 billion USD. With such a high demand and little supply to handle it, the world has been facing a massive shortage in GPUs for over a year.

But that could change soon.

According to Hardware Times and company reports, Nvidia spent up to 9 billion USD on necessary parts to keep its upcoming RTX 40 series GPUs on store shelves. That is a massive investment, increasing its spending in that area by 2.1 million USD from the quarter before. This would let them produce more GPUs, and gamers can finally purchase the new series at a more affordable price.

Nvidia certainly has the money to handle such an increase. The company reported 7.64 billion USD in revenue during the fourth fiscal quarter, ending in January 30, 2022.

It’s refreshing to see such a positive response from a company after consumer criticisms, and it seems that Nvidia sees this as a no-lose opportunity. While it certainly costs more money to produce more GPUs, this will hopefully dissuade scalpers looking to sell them for exorbitant prices on reselling websites. Additionally, Nvidia could see an uptick in profit as more video game enthusiasts invest in high-end PC gaming hardware.

With the current RTX 30 series GPUs still scarcely available at retail price, Nvidia’s commitment to keeping production up to snuff with demand is a welcoming change. However, gamers won’t be able to see that change until the new series releases some time this year.

GosuRabbit is a marketing agency that specialises in providing entertainment, esports and gaming marketing services for brands, businesses and agencies across the globe.

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