AMD Introduces New Graphics Cards for Gaming at 1440p Resolutions

AMD Introduces New Graphics Cards to Fill Gap in Lineup

Advanced Micro Devices (AMD) is addressing a significant gap in its current-gen graphics card lineup with the introduction of two new cards. The RX 7000 family previously had only three entries, leaving a void in the midrange price range. To bridge this gap, AMD had been relying on its last-gen RX 6000 graphics cards, which are still available at discounted prices.

The new graphics cards announced by AMD are specifically designed for gaming at 1440p resolutions. The RX 7700 XT, priced at $449, and the RX 7800 XT, priced at $499, are set to launch on September 6. The latter card offers more memory, an advantage in compute units, and a wider memory interface compared to the former.

The sluggishness of AMD’s RX 7000 rollout can be attributed to the state of the graphics card market. Shipments of graphics cards plummeted by 38.2% year over year in the first quarter, and AMD’s unit-market share was cut in half. The COVID-19 pandemic has significantly impacted demand, and pricing has normalized as a result.

Both NVIDIA and AMD have experienced lackluster launches for their latest graphics cards, particularly in the midrange segment. NVIDIA’s RTX 4060 and RTX 4060 Ti cards, targeting the $299 to $499 price range, have been hindered by a narrow memory interface. Tom’s Hardware even questioned the necessity of the $499 16GB variant of the RTX 4060 Ti. AMD’s only midrange current-gen graphics card, the RX 7600, barely outperforms the last-gen RX 6650 XT at a higher price.

AMD aims to position the RX 7800 XT as a competitor to NVIDIA’s RTX 4070, which sells for around $100 more. However, AMD may face competition from its own discounted last-gen graphics cards. The era of significant performance gains per dollar with new graphics cards seems to be coming to an end.

Despite the introduction of new graphics cards, AMD does not expect any improvement in its gaming business in the third quarter. The gaming segment, which includes GPUs and semi-custom chips for game consoles, is projected to experience a decline. This suggests that the graphics portion of the segment will perform worse than the segment as a whole.

While the performance of AMD’s new graphics cards is yet to be determined, it is anticipated that they may offer only modest gains compared to their predecessors. NVIDIA’s cards boast more advanced features and better ray-tracing performance, making it crucial for AMD to undercut the market leader on price and outperform its own last-gen cards to win over gamers. Without these factors, gaining significant market share will be challenging for AMD.

Disclaimer: Timothy Green has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices and Nvidia. The Motley Fool has a disclosure policy.

How has the global semiconductor shortage affected the availability and production of graphics cards?

N half. The global semiconductor shortage has severely impacted the availability and production of graphics cards, leading to increased demand and inflated prices.

AMD’s decision to introduce these new graphics cards aims to provide consumers with more options in the midrange price segment. The RX 7000 family now offers a more complete lineup, with the new additions filling the void that existed previously. By focusing on the 1440p gaming market, AMD is targeting gamers who value high-resolution gameplay without breaking the bank.

The RX 7700 XT and RX 7800 XT feature improved specifications compared to their predecessors. The RX 7800 XT boasts additional memory, more compute units, and a wider memory interface, promising enhanced performance and smoother gameplay. With a launch date of September 6, gamers can soon experience these upgraded graphics cards.

The delay in expanding the RX 7000 family can be attributed to the challenging market conditions. The semiconductor shortage has disrupted supply chains and led to significant delays in product launches. Moreover, declining shipments and increased competition have added to the complexity of the situation.

It remains to be seen how these new graphics cards will be received by consumers. The midrange price segment is a crucial market, as it caters to a wide range of gamers who desire affordable yet powerful graphics cards. With their upgraded specifications and competitive price points, the RX 7700 XT and RX 7800 XT have the potential to attract these consumers.

As the graphics card market continues to evolve, companies like AMD face ongoing challenges. Meeting consumer demands, navigating supply chain disruptions, and staying competitive against rivals are paramount to success in this industry. By introducing new products and addressing gaps in their lineup, AMD is demonstrating its commitment to providing a diverse range of options for gamers worldwide.