Overclockers.co.uk post about Vega price soon changing, multiple AIB partners reached out to GamersNexus – and vice versa – to discuss the truth of the content. The post by
Gibbo of Overclockers suggested that launch rebates and MDF would be expiring from AMD for Vega, which would drive pricing upward as retailers scramble to make a profit on the new GPU. Launch pricing of Vega 64 was supposed to be $500, but quickly shot to $600 USD in the wake of immediate inventory selling out. This is also why the packs exist – it enables AMD to “lower” the pricing of Vega by making return on other components.
In speaking with different sources from different companies that work with AMD, GamersNexus learned that “Gibbo is right” regarding the AMD rebate expiry and subsequent price jump. AMD purportedly provided the top retailers and etailers with a $499 price on Vega 64, coupling sale of the card with a rebate to reduce spend by retailers, and therefore use leverage to force the lower price. The $100 rebate from AMD is already expiring, hence the price jump by retailers who need return. Rebates were included as a means to encourage retailers to try to sell at the lower $499 price. With those expiring, leverage is gone and retailers/etailers return to their own price structure, as margins are exceptionally low on this product.