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Ahead of AMD’s Radeon RX 9070 series launch, a lot of information has been revealed about day 1 pricing and stock levels. The good news is that globally, retailers seem convinced that they have “ample” stock of Radeon RX 9070 series GPUs to meet day-1 demand. However, this information also unveiled a startling fact. Retailers cannot buy AMD Radeon RX 9070 series GPUs for AMD’s MSRP price. Based on what we have heard, this isn’t just a European or North American problem, but a global one.
The retail business is simple. Retailers need to sell products at a higher price than what they buy them for. If retailers can’t buy Radeon RX 9070 series GPUs from distributors at below MSRP prices, they can’t sell them to consumers at AMD’s official MSRP price.
No, we can confirm that Radeon RX 9070 and RX 9070 XT GPUs will sell at AMD’s official MSRP price. How? The answer to that question is AMD. AMD will be supporting major retailers to help them achieve these pricing levels. Note that this support will only apply to a limited number of GPUs.
While gamers will be able to purchase AMD’s new RDNA 4 GPUs at MSRP prices, these GPUs will achieve this pricing level by using what are effectively “AMD discounts.” Once this support ends, retailers will sell GPUs for their natural prices, which are dictated by their purchasing and shipping/distribution costs.
With this in mind, it can be said that AMD’s RDNA 4 GPUs are not hitting their MSRP prices “naturally.” This also means that RDNA 4 GPU pricing will rise above AMD’s MSRP after the company’s pricing support ends.
MSRP is supposed to mean “Manufacturers Suggested Retail Price.” In today’s GPU market, it now means “minimum price.” Graphics cards at MSRP pricing don’t sit on retail shelves for long. That leaves above-MSRP GPUs as the only graphics cards available, inflating the real world pricing of these products.
If retailers can’t buy GPUs at MSRP prices, consumers can’t purchase them at MSRP prices. AMD’s need to support retailers in achieving their MSRP pricing highlights a key problem in today’s GPU market. Is an MSRP a real MSRP if a discount is needed to enable it?
In AMD’s defence, their pricing support for retailers helps offset early costs associated with product launches. Expensive air freight ships GPUs to retailers quickly for launch day, adding to retail costs. When retail demand stabilises, slower/cheaper shipping methods can lower costs. Regardless, global retailers can’t hit AMD’s MSRP pricing without AMD’s help. As such, buying an RX 9070 series GPU at AMD’s MSRP price may be difficult, especially once early supply dries up.
