system
A chat on subreddit /r/pcmasterrace
human
I don't think increase in material costs justifies the price hikes we are seeing right now
gpt
Oh it doesnt, not fully or even close, but it is a factor.

If materials go up by $50, a company is going to raise prices by $100 to keep margins the same. Otherwise, with time, margins for everything would trend to zero.

This is what people seem to be unable to understand. GPU prices will never go down to where the flagship costs $700 or something like that because a while a gtx 580 might have cost nvidia $200 to make and they sold it for $500, they had a gross margin of 60%. Now a 4080 might cost just $400 or $500 to make, but they want to keep that 60%+ margin so the card costs $1200 for consumers.