You think prices will fall now that there are giant new capable data centers everywhere? AAA Gaming will become synonymous with cloud gaming and the hardware to run games at home won‘t be produced anymore. They’ll build even more data centers instead. It‘s a much more useful business model to establish tech feudalism for the overly rich.
Prices won’t fall, not until the AI bubble bursts and the related industries shift focus back to consumer-level goods.
At best, you could hope prices remain steady for a few years and real-world incomes slowly rise to match this new normal.
CosmoNova@lemmy.world 1 day ago
thatKamGuy@sh.itjust.works 23 hours ago
Data centres aren’t run by hardware manufacturers. When Nvidia/Micron/Samsung run out of enterprise corporations to bilge funds out of, they will return back to selling to consumers.
Does this mean that things will 100% return to how they were in the ‘Before Times’? No, let’s be real - the surplus of under-used data centres will definitely result in a push towards cloud gaming, online experiences and the like - but in an ideal scenario we would end up with more choice and not less.
But again, this all hinges on the current AI bubble bursting in the near future - followed by a pretty bad recession/depression.
Rooster326@programming.dev 1 day ago
And how is this going to happen when nobody has any money?
thatKamGuy@sh.itjust.works 1 day ago
The principal of supply and demand still applies, they will cut prices up until the point they either go out of business or they find a sufficient number of buyers.
Companies like Nvidia, Micron and Samsung are currently chasing massive profits off enterprise customers, but will come crawling back to consumers once the AI bubble bursts (assuming they survive the resulting market collapse).
As an example, if Nvidia can turn one TSMC wafter into one AI accelerator that they can sell for $40K, or into ~5 RTX 5090s they can sell for $2K/ea - they will sell as many of the $40K cards as they can, and only use failed wafers to try and satiate RTX 5090 demand.
But if there are no more AI customers, they will be forced to either drop prices in order to shift more volume. If they can’t drop prices further due to wafer costs, then they will pass up wafer allocations from TSMC.
If TSMC sees too many wafers free up - they will be forced to drop prices to all customers (AMD, Apple etc.) to try and pick up the slack. They in turn will need to drop prices in order to try and increase sales volumes.
This will have a downwards pressure on prices and a “return to the mean” moment for tech prices. It will just be a painful couple of years until we get to that point, and honestly with the way things are currently going - it will be the least of our worries.