Gamers might benefit from the crypto crash as demand for GPUs falls | Fortune

The price of graphics processors, such as those made by NVIDIA and Advanced Micro Devices (AMD), fell an average of 15% in May, reports Tom’s Hardware magazine. May’s decline extends a downward trend in GPU prices over the past several months. An index tracking GPU prices fell 40% between December and April, notes crypto news site The Block.

Those who have been waiting for a high-end graphics card, a group that includes not only people looking for an improved gaming pc, but also illustrators and digital artists, are now expressing delight at the collapse in graphics card prices. the cryptocurrencies. finally allows them to update.

Reading: Prices nvidia chips gamers compete bitcoin

Graphics processors help computers create images and manipulate computer graphics. that makes them a key part of any gaming platform, be it a personal computer or a video game console. (Sony’s PlayStation 5 and Microsoft’s Xbox series use custom AMD chips, while Nintendo uses an NVIDIA Tegra for its Switch console.)

But GPUs are also better than other computer chips at processing the protocols crypto miners use to validate blockchain transactions and unlock crypto rewards. As miners tried to build ever more powerful rigs to outpace the competition, demand for GPUs skyrocketed, driving gaming companies out of supply.

but the collapse of crypto values ​​means that mining is now less profitable, so miners may be offloading their extra gpu on the secondary market. that’s good news for gamers finally getting a chance to upgrade their custom consoles.

See also: The Case Against Crypto

andy paul, chief executive of computer peripheral maker corsair gaming, predicted “huge growth” in demand for personal computers on an earnings call in may. “We’re pretty convinced [GPU prices] are going to drop below MSRP in the next month, certainly by the end of Q2,” Paul said.

But it might not be good news for chipmakers, as GPU shipments are down 19% year-over-year, reports consultancy Jon Peddie Research.

“As the demand for cryptocurrency mining in gpu shipments has slowly declined, the demand for graphics cards across the market is normalizing,” said co-CEO of asustek computer s.y. hsu on the computer maker’s first-quarter 2022 earnings call.

gpu manufacturers may also have relied on the cryptocurrency market to increase their revenue. Both nvidia and amd shares fell more than 45% for the year, amid a broader reset for the chip sector. In May, NVIDIA paid a $5.5 million fine to the United States Securities and Exchange Commission for hiding how much of its revenue came from crypto miners.

The gaming industry has also been affected by chip shortages, with both Sony and Nintendo reporting restricted production due to lack of supplies.

players vs. web3

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games and the world of web3 have a strained relationship.

web3 proponents see gaming as a vehicle to bring concepts like blockchain or nfts to those who have never used cryptocurrencies before. Blockchain games like the so-called Axie Infinity win game have attracted hundreds of thousands of players in markets like the Philippines by offering the opportunity to earn money by selling in-game assets. (axie infinity has had a rough 2022, suffering from an economic crisis and a multi-million dollar hack. The developers now claim that making money was never a core part of their game’s appeal.)

Established gaming companies are also starting to invest in blockchain. Japanese publisher Square Enix Holdings recently divested some of its most famous gaming brands, such as Tomb Raider, to raise money for blockchain investments.

Players and studios have called these initiatives a money grab that exploits players. The backlash has forced some big publishers, like Electronic Arts and Sega Sammy Holdings, to quietly pause their NFT plans.

Cryptocurrency prices have plummeted in recent months after the collapse of high-profile projects like terraform labs’ terrausd stablecoin and cryptocurrency lender’s celsius network. On Thursday, rumors about the solvency of hedge fund Three Capital Arrows dragged crypto stocks even lower.

Bitcoin is down 57% for the year as of noon Hong Kong time to hit $20,346.20. ether is down 72% to $1,067.92.

See also: 5 Bitcoin Margin Trading Platforms for 2022 | ZenLedger


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