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GPU shipments hit hard by financial crisis

GPU shipments hit hard by financial crisis

According to JPR’s estimated graphics cards shipments, the market declined by almost 35 percent between the third and fourth quarters.

Following hints that GPU shipments were down in the fourth quarter – a direct result of the economic slowdown – a report released by Jon Peddie Research this week all but confirms the worries. According to JPR’s estimated graphics cards shipments, the market declined by almost 35 percent between the third and fourth quarters.

Total GPU shipments for the fourth quarter amounted to 72.35 million, while the previous quarter’s estimates were pegged at 111.26 million units shipped. It’s also the first time shipments have dropped between the third and fourth quarters since the year 2000.

That’s not good news for the industry, but it’s not likely to get better any time soon because Peddie suggests that we may witness the worst first and second quarter decline since the dot com bomb of 2000. He does expect the market to get on the road to recovery in the third and fourth quarters of this year, though.

Peddie attributed the declines to the global economic slowdown and lack of consumer confidence – par for the course at the moment. He said vendors were preparing for a bad quarter, but was still surprised by the way the market stalled so dramatically.

Looking through the figures provided by JPR, SIS and Matrox were hit hardest by the economic slowdown, but AMD wasn’t far behind in the squeeze – its shipments declined by almost 39 percent. Nvidia actually suffered the least during the fourth quarter, as its sales dropped by just 28 percent and as a result it managed to steal market share from both AMD and Intel.

The desktop graphics market has been on a slow decline for a while now, but Peddie says that the decline accelerated during the latter half of 2008. Despite this, it’s expected that sales will level off during 2009, because there is still significant demand for desktop GPUs in certain markets.

Both AMD and Nvidia gained market share from Intel in the desktop segment during the fourth quarter and their shipments now represent 21.4 and 37.9 percent of the market respectively. “Given the tough circumstances of this quarter, AMD's increase is no mean accomplishment.” he said.

The one thing that really surprised us here was the inroads Nvidia made into the market while the rest of the industry felt the pinch in quite emphatic fashion. Its low-cost GeForce 9400M integrated graphics chipset has really hit the market at the right time and this is where the company has most likely made up the most ground - we expect this trend to continue through the first few quarters of 2009 when more GeForce 9400M design wins are announced by system builders.

Did you buy a new graphics card in the fourth quarter? Tell us in the forums.

17 Comments

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Icy EyeG 31st January 2009, 12:07 Quote
In tough economic times I believe people start asking themselves if it is worth buying a graphics card that costs almost as much as an average computer and eats just as much electricity....
Therefore, developing mid-range energy efficient solutions is the way to go.
I'm really curious to see how nVidia ION plays out as far as that is concerned.
I just hope it doesn't take too much time to be released (like Via Nano is taking)....
Phil Rhodes 31st January 2009, 13:05 Quote
Too. Ex. Pen. Sive.

Why does a graphics card as good as that in a PS3 cost more than a PS3?

I call profiteering.
Tim S 31st January 2009, 13:39 Quote
Quote:
Originally Posted by Phil Rhodes
Too. Ex. Pen. Sive.

Why does a graphics card as good as that in a PS3 cost more than a PS3?

I call profiteering.

It doesn't... the 9600 GT or 4670 at £70-80 are both more powerful than the PS3's GPU, which is actually based on the GeForce 7900. Cards more expensive than that are quite a bit faster than the GPU in the PS3 and in most console games, you get sub-par image quality (compared to the PC version of the game) and there's no FSAA or anisotropic filtering.
Phil Rhodes 31st January 2009, 13:44 Quote
Perhaps I was too harsh when I complained about running Far Cry 2 on middling settings and chasing the edge of the shadow effects down the road. Is that what it looks like on a console?! Eurgh.

PS3 games certainly look competitive with PC stuff - are those eight cores coming into play, I wonder. Either way the result is the same and I'm left feeling a bit ripped off, especially as it appeared to me based on early releases that it was possible to buy a PC that would play games as well as a PS3 for less money, even at launch. That feeling is now looking a bit outdated.

P
Tim S 31st January 2009, 13:50 Quote
That was true when the PS3 first came out, but now that technology has advanced on the PC, the PC is back in the driving seat and a respectably priced mid-range PC will play games better than a PS3... if you don't mind GfWL and bloatware like that :p
digitaldave 31st January 2009, 13:53 Quote
apple report growth in their hardware sales and they use the 9400M in all their laptops now.

co incidence ?
Goty 31st January 2009, 19:55 Quote
I wonder if it could be because *gasp* there weren't any new technologies released in the third OR fourth quarter?
Tim S 31st January 2009, 20:20 Quote
Quote:
Originally Posted by Goty
I wonder if it could be because *gasp* there weren't any new technologies released in the third OR fourth quarter?

So GT200 and RV770 weren't new? They were released in Q3.

9400M, 4870 1GB and 4850 X2 were released in Q4.
lewchenko 31st January 2009, 22:42 Quote
To be expected really. The high price cards are a bit of a luxury purchase. The key to shipping more is laptop parts though. Laptops's seem to be selling very well compared to desktops these days for home users. NVidia's 9300/9400/9600 series are owning anything else out there.

Even for apple desktop sales declined 25% last quarter.

Personally I just bought a 260 Black Edition from XFX. That chunk o' change went to Nvidia. Gotta do my bit for the recession!, just like the wife is doing hers (shoes, clothes, boots, perfumes, makeups, etc etc etc etc ;-)

As for comments about the PS3 ... hmmm. some people just have no sense of reality.. or have poor eye sight, or perhaps have not seen a decent PC perform at its best. Blame the devs who just do lazy ports to the PC platform! PC GPU's eclipse the PS3 and 360 graphics cards by a long long way now. After all... its been a few years now since those console graphics cards were considered decent in the PC world.
dylAndroid 1st February 2009, 00:55 Quote
Quote:
Originally Posted by Tim S
So GT200 and RV770 weren't new? They were released in Q3.

9400M, 4870 1GB and 4850 X2 were released in Q4.


The GT200 series is priced so high, it doesn't really exist as a product to most of the market. Personally, I'm interested in that generation of hardware, so it's been a waiting game until they do something to cause prices to come down.

Of course, the counter-point to what I just said, is that the GT200 series should lower the prices of previous hardware, and potentially increase market activity.


Actually, what I really would like to see is more energy efficiency in graphics cards.
1ad7 1st February 2009, 01:19 Quote
my question is why does it seem the release of the4870 and gt200 series had little effect on the cards right below them, sure 8800gt's are cheap but gts's on new egg stayed the same price till they dropped em... I was waiting for a 150-180 dollar gts 512 to go sli but no such luck :(
r4tch3t 1st February 2009, 05:14 Quote
You have to remember that games on the PS3 and XBox 360 are heavily optimised to make the most of the processing power available, On the PC, it is far too difficult to optimise as there are so many different configurations out there.

As for me, I am currently saving up for a new PC as my landlord stole my graphics card.
ComputerKing 1st February 2009, 15:24 Quote
yeah i didn't buy a new vga because the encomic crisis. Why i spent 300 $ on a vga now days ? i can do many things with that money, also it don't worth it any more.

you want to JUST GAME get your self a PS3 or Xbox but PC is not for gaming because the costs.
lewchenko 1st February 2009, 23:58 Quote
Quote:
Originally Posted by ComputerKing
yeah i didn't buy a new vga because the encomic crisis. Why i spent 300 $ on a vga now days ? i can do many things with that money, also it don't worth it any more.

you want to JUST GAME get your self a PS3 or Xbox but PC is not for gaming because the costs.

Spoken like someone who has fallen on hard times.

For those of us that actually want the best out of gaming.. well we will spend that kinda money on a graphics card. And its worth every penny. Id rather cut back on the food bills and eating out than reduce my tech spend !

A PC is for gaming.. and more. Thats the beauty of a PC. My PC solely exists so I can game. If it werent for the games, I would buy a Mac.

I think they are good value for money, even when you spend $3000 on a PC... the amount of time you get out of it is stunning.
r4tch3t 2nd February 2009, 01:15 Quote
It is true, you get a phenomenal amount of time for your dollar/pound when spend it on computers, I have a Dell XPS 1530, and just in the past two weeks (according to Steam) I have spent 75 hours gaming. I have had this for a year, and assuming on average 30 hours a fortnight it works out to be $2.50 an hour, and that is only for games. Going to the movies costs $20 for 1.5 hours of entertainment.
So if you spend money on computer components rather that going out for dinner or the movies you are getting a lot more for your money.
Lepermessiah 2nd February 2009, 03:11 Quote
PC not for gaming, lol, wins the award for dumbest post of the day.
The_Beast 2nd February 2009, 05:35 Quote
When I bought my computer I told myself I wasn't going to game on it and it was just for 3d rendering/design. Now I sit at my computer gaming at least an 1.5 hours a day


I don't have the latest and greatest console it's nice to have something to game on ie PC
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