AMD's recent launch of the Radeon RX 9070 series has dramatically shifted the graphics card landscape, particularly in Japan where the company has achieved unprecedented market penetration. This success comes amid ongoing supply challenges that have affected the entire GPU industry since the beginning of the year.
Record-Breaking Market Share in Japan
AMD has reached a remarkable 45% GPU market share in Japan following the launch of its RDNA 4-based Radeon RX 9070 series. This represents an all-time high for the company in the Japanese market, traditionally dominated by NVIDIA. During a recent roundtable discussion with board partners including ASRock, ASUS, Gigabyte, PowerColor, and Sapphire, AMD's representative Mr. Yoshiaki Sato acknowledged this achievement while expressing even more ambitious goals. No, we have a majority, we are not an opposition party, let's aim for 70%. We have never been a ruling party! Sato stated, indicating AMD's determination to further challenge NVIDIA's market dominance.
Supply Constraints Despite Strong Demand
Despite the impressive market share gains, AMD is facing significant supply challenges. According to AMD's David McAfee, The demand was very, very, very strong all around the world. The company has admitted it wasn't prepared for such overwhelming demand, with Sato candidly stating that AMD isn't used to selling so many graphics cards. Currently, availability remains sporadic, with cards frequently selling out within minutes of restocking.
Supply Stabilization Expected
There appears to be light at the end of the tunnel for frustrated consumers. Chinese graphics card manufacturer Yeston has indicated that supply of AMD's new GPUs will become more stable after April. The company stated on social media: We have received a lot of messages and would love to inform you now the supply is unstable, but we will restock every week. Please don't be frustrated if you didn't get it. The supply will continue stable to be available after April.
Pricing Challenges Persist
While availability issues may improve in the coming weeks, pricing remains a significant concern. Many RX 9070 series cards are selling well above AMD's suggested retail price (MSRP), with some board partners like ASUS reportedly increasing prices to 1.5-2.0 times the MSRP. AMD has acknowledged this issue, with McAfee stating, We want to make sure that users are able to buy cards at prices that they expect to see in the market. We're doing everything we can to make that happen.
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| The latest gaming computer cases reflect the dynamic market for graphics cards, amidst ongoing pricing challenges and demand for high-performance designs |
The Complex GPU Supply Chain
AMD has highlighted the complexity of the graphics card market compared to its CPU business. Unlike processors, which AMD sells directly to consumers, GPUs involve a more complicated supply chain. AMD provides chips to board partners who then create various designs at different price points, after which retailers decide which models to stock. It's something that we don't honestly directly control, McAfee explained. This time around, AMD opted not to release its own reference design cards, further limiting its direct influence on retail availability and pricing.
Competitive Landscape
The strong performance of the RX 9070 series compared to NVIDIA's RTX 5070 series appears to be driving AMD's market share gains. Both companies are facing supply constraints, but AMD seems to be managing slightly better than its competitor. As NVIDIA prepares to increase supply of its RTX 50 series, the competition is likely to intensify further in the coming months.
Looking Forward
For consumers eager to purchase new graphics cards at reasonable prices, patience remains essential. While AMD is committed to improving supply and encouraging board partners to offer cards at MSRP, market normalization may take several more weeks or even months. By summer 2025, the situation may improve significantly if both AMD and NVIDIA can match production to the extraordinary demand currently seen in the market.