Nvidia’s Desperate Measures to Combat Scalpers and GPU Markup Madness
Introduction
The skyrocketing markup on Nvidia’s latest GeForce RTX 5090 and 5080 graphics cards has reached alarming levels, with cards being snatched up and resold at exorbitant prices on platforms like eBay. Faced with this rampant scalping and inflated costs, Nvidia has resorted to a peculiar solution: entering buyers into a raffle system for a chance to purchase Founders Edition (FE) cards at the base price.
The Nvidia Raffle System
Nvidia’s raffle system is a simple process. Anyone with an Nvidia account created before January 30th can access the enrollment form. Participants can select either the GeForce RTX 5090 or 5080 or both and submit their names into the lottery. Nvidia has not disclosed the number of FE cards available, but winners will be notified via email next week.
This program echoes similar efforts from other OEMs, such as Zotac, which launched a Discord-based raffle to give users a chance to buy cards at the Manufacturer’s Suggested Retail Price (MSRP). However, despite these measures, other AIM cards from Asus and MSI have increased in price by significant margins since the RTX 5090 launch.
The Reseller’s Playground
Scalpers are cashing in on the GPU shortage, reselling cards on marketplaces like eBay for over $4,000. Overclocked models can fetch astronomical prices close to or exceeding $6,000. This rampant price gouging has made it nearly impossible for gamers to acquire these high-end graphics cards at their intended prices.
The Root of the Problem: Lack of Supply
While Nvidia’s raffle system may provide temporary relief for some lucky buyers, it does not address the underlying issue: the shortage of GPUs. Nvidia’s strategy should prioritize increasing production capacity to outpace scalpers’ ability to hoard cards. Warnings about low stock levels prior to launch and the paltry number of GPUs available at physical retailers indicate a supply-demand imbalance that has allowed scalpers to thrive.
The Case of the RTX 5070 Ti
Nvidia’s RTX 5070 Ti, initially priced at $750, is also facing supply constraints. Reports suggest that certain markets are planning to sell non-overclocked cards for over $900 and overclocked variants for well over $1,000. At those prices, consumers may as well wait for the RTX 5080, assuming they can find one at MSRP.
Nvidia’s Broken Promise
Despite Nvidia’s assurances that it had taken steps to mitigate scalping, the stock situation remains dire. The company’s links to FE cards at MSRP are now out of stock, and the upcoming launch of the RTX 5070 family is unlikely to meet the overwhelming demand.
Conclusion
Nvidia’s raffle system is a desperate attempt to address the rampant markup and scalping of its GPUs. However, it is a short-term solution that fails to address the root cause of the problem: the lack of supply. Until Nvidia and its partners can significantly increase production capacity, the market will remain tilted in favor of scalpers and consumers will continue to be victimized by inflated prices.
