MSI set to raise prices of graphics cards amid stock shortages

The Taiwanese corporation MSI will increase the prices of graphics cards to temper ongoing supply issues.

Speaking at an investor conference reported on by DigiTimes, MSI's chairperson Joseph Hu referenced a growing demand for graphics cards and other gaming-related products.

Hu expects this demand to increase by double digits in the upcoming year, despite the shortages. MSI expects to raise the prices of its products to reflect this.

Why is MSI raising the prices?

Much like the PlayStation 5 and Xbox Series X, stock shortages have hit graphics cards hard. While MSI had its highest-ever annual profits in 2020, the company reported "weaker-than-expected" profits in Q4, according to Hu.

There is no sole reason for these stock shortages. Scalpers, crypto miners, logistical issues, component shortages, and an increased interest in gaming amid the COVID-19 pandemic have all been blamed for the lack of readily available graphics cards.

MSI is not the only third-party seller to raise prices about the RRP of these cards. ASUS announced it would also increase the MSRP of its GPUs in January 2021 to reflect operational costs and rising demand.

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NVIDIA will launch a bespoke crypto mining processor to ease stock issues.

When will these stock issues end?

Various predictions have been made for when stock and component shortages could subside, with these timings ranging from mid-2021 to the beginning of 2022. The consensus seems to be that these issues won't just disappear overnight.

MSI's Hu remains confident that some issues the company faces will subside later this year. Hu expects transportation costs and logistical issues to disappear from March 2021 onwards.

Of course, this does not mean MSI will need to lower the prices when normality resumes, especially if demand remains high.

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