In early December 2022, a series of graphics processing units (GPUs) were re-stocked at Dospara, a computer components store in the Akihabara district, where Tokyo’s famous electronics are concentrated. This is a far cry from the early days of 2021 when those shelves were mostly empty.
GPUs are computer components that are crucial for data-intensive activities like gaming and video editing. Their ability to handle large amounts of computation at once also makes them well-suited for cryptocurrency mining. A sharp increase in cryptocurrency prices in 2021 spurs greater demand for GPUs, but affects gamers and other popular consumers as they have little choice to buy goods at low prices.
Nvidia responded to this situation by producing GPUs with lower hash rates like GeForce RTX 3060 to reduce the possibility of cryptocurrency mining. At the same time, the company also launched products specifically designed for mining operations. That was also when the cryptocurrency started to plunge. According to CoinDesk, BTC was priced at around $17,000 at the end of December 2022, about 80% below its all-time high in November 2021. The value of Ethereum is also down around 80%.
“There’s little payoff for miners right now, with cryptocurrencies losing value even as the costs of mining them increase,” said Takeshi Kamada, CEO of price comparison website Kakaku.
Mining has also faced growing criticism on environmental grounds. According to Nvidia, Ethereum, the main driver behind crypto-related GPU demand, switched to a mechanism to eliminate the need for mining in September 2022. The downsizing of crypto mining means the industry will have less impact on the graphics card market.
Nikkei quoted data from price comparison platform Aucfan, showing that graphics cards sold for an average of 18,737 JPY ($144) at online stores in November 2022, down about 60% from May 2021. The number of cards being auctioned also decreased by about 40% over the same period, to 5,379 cards.
“When gamers and video makers come to buy graphics cards, we can recommend and advise them with a lot of options, models are available, and prices are competitive,” said Shoki Hisasue, Dospara store manager, with relief.
According to Dutch research firm Newzoo International, the global gaming market will expand by about 10% between 2022 and 2025, to $211.2 billion.
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