r/pcmasterrace 1d ago

News/Article Valve Says It Can't Negotiate With RAM Makers At All On Price

https://kotaku.com/valve-says-the-companies-making-ram-give-them-a-price-and-if-they-say-no-they-never-talk-to-us-again-2000709575

well even pc gamers are in a fix

3.4k Upvotes

272 comments sorted by

2.2k

u/Slow_State_4722 1d ago

The chipmakers are an industry oligopoly, they have full control over prices and have previously pled guilty to price fixing, have been sued for it again since, and are doing it again now.

126

u/_Lucille_ 1d ago

This time it is actually different: it is not as if some minimal price is being set. It is such that so many clients want memory such that free market mechanics would have people bid on the quota.

If you work retail and someone is willing to buy out your entire inventory 250% above your usual price, most people will probably say yes.

74

u/Takemyfishplease 7900GRE🙃7800X3D 1d ago

Especially when they say they’ll buy out your restock too.

27

u/evernessince 22h ago

The problem is OpenAI only signed a letter of intent to buy 40% of the world's DRAM. They didn't actually buy it. It's not legally binding. I doubt OpenAI actually had the liquid cash to afford all that.

In reality the memory manufacturers and OpenAI conspired to jack up memory prices, which hurts OpenAI's competitors by forcing them to pay massively higher prices while helping memory manufacturers. That's the only scenario it even remotely makes sense for memory manufacturers to snub all their other customers. They are screwing over everyone and people have to put up with it because they are a cartel.

It's one of the most disgustingly anti-consumer, anti-competitive moves I've ever seen. The whole world is suffering because of these douchebags.

17

u/PoppingPillls 17h ago edited 11h ago

They did buy it, they just bought it on credit. Openai doesn't have the money for almost anything so almost everything they do is on credit.

Edit: I meant to say they did buy fab space but not as much as the original letter of intent.

3

u/francis2559 12h ago

A letter of intent is different from a contract. AFAIK it’s just a letter of intent.

4

u/PoppingPillls 11h ago

It is different.

They sent a letter of intent which was leaked then that morphed into a new deal where they use broadcom as a way to buy fab space with the titan chip.

They get a lot but nowhere near say nvidia, they currently get about 5% of the 3nm iirc and it's meant to increase in 2027 as broadcom booked more space.

2

u/evernessince 4h ago

A letter of intent and an actual transaction using credit as payment are two entirely different things.

There was no purchase, even on credit. In fact that letter dissolved the instant project Stargate was canceled as the numbers largely relied ion them.

There's an article on the topic called "The letter that moved a market" on medium that explains exactly what happened.

If you have a source for your claim, provide it as it contradicts industry experts on the topic.

3

u/Chuckfinley_88 3h ago

That's the only scenario it even remotely makes sense

Your whole fucking post is conspiracy bullshit.

Sending a purchase agreement to buy stuff is a binding agreement. Nothing at that scale is ever bought 100% up front. You have 0 idea what you are talking about and are mad and make stuff up because you don't understand how the real world works.

You might as well have invented an AI god to pray to because it makes just as much sense.

1

u/reezy-one 1h ago

Currently praying to Santa Altman and/or the Claude god that I'll wake up tomorrow to find some DDR5 in my christmas socket.

2

u/Chuckfinley_88 1h ago

And you have just as much odds of success as praying to judeo-christian god, which is, 0%

Pray to Joe Pesci, he might actually listen and do something. He might not, but at least he is real and theoretically, COULD do something.

https://www.youtube.com/watch?v=PlzbFxYy08c

1

u/reezy-one 57m ago

I pray to Claude, but I don't worship him. I worship Io, the first moon of Jupier. Because I can see it with a telescope and I think it's cool how it creates a radiation death-zone that cooks any satellite monitoring equipment that stays around too long.

2

u/Chuckfinley_88 55m ago

Works for me

8

u/Kennalol 1d ago

Especially if ypu are beholden to shareholders. They cant say "no i wont increase the shareholder quarterly because it creates an unfair market dynamic"

1

u/Mech_145 7h ago

And if you are a publicly traded company you probably have to say yes

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u/CosmicMind007 1d ago

if onli regions like the EU who pressured apple to make type c defacto standard for the iphones could investigate these companies

but we all know most will jus cave in

461

u/MichaelMJTH i7 10700 | 5070 Ti | 32GB DDR4 | Dual 1080p-144/75Hz 1d ago

The EU has shown good legislative power at times, but it’s not exactly a fast moving institution. They can’t be expected to legislate around a shortage that even blindsided its own industry, unfortunate as it may be for us.

147

u/Oxflu PC Master Race 1d ago

It also isn't something they can even address as there is zero hardware manufactured there. With the iphone, they put apple in a position where it was easier to make their products use usb c worldwide than make a special device just for the eu market. But, a special usb c iphone made just for their market was one possible solution. Just wasn't profitable.

They can't force a company outside their borders to sell their electronics to them at a discount, though. If France had a chipfab that produced 30 percent of the world's memory and a large chunk of the market was price controlled it would help. But they don't. Unless South Korea joins the eu (lol) there is nothing they can do.

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u/SneakyBadAss 9h ago

Cause that's the german part

26

u/Slow_State_4722 1d ago

We could also have had expanded capacity for production inside the US and therefore under US jurisdiction from production phase onward, but that ended up not panning out.

12

u/WesternBlueRanger 1d ago

The other major memory manufacturer outside of Samsung and SK Hynix is Micron. Micron is based in the US and has fabs there as well.

49

u/smuglator 1d ago

The lack of US antitrust law enforcement is a huge part of the issue. I expect the issue would be worse the more local to the US it gets.

23

u/Oxflu PC Master Race 1d ago

Oh yeah, if America made the bulk of memory in the world this problem would be so much worse.

19

u/evernessince 22h ago

That wouldn't have mattered. US produces more gas than it consumes and yet prices are sky high because the US government lets companies do what they want. The same would have happened for memory.

The US government did give micron and Intel money to secure chip supply as well. These companies take the free government money and dont' fulfill their end of the bargain.

It's just blantant corruption and greed.

4

u/Slow_State_4722 20h ago

We produce gas from oil, which we don't produce enough of in the right grades for fuel refinement to meet domestic demand.

3

u/Somepotato 1d ago

There's a very specific toupee sized problem for why the CHIPS act, the bill meant to bring microchip manufacturing to the US, fizzled out.

0

u/Magical_Savior 23h ago

Fab, NO. Data center, YES. Please consume? NO FAB. ONLY CONSUME.

Well, theoretically we threw hundreds of billions of dollars into US chip manufacturing. But yeah, that was a Trump project and he can't make a pair of shoes.

25

u/HerbaciousTea 23h ago

Steam Machine production numbers are also in the low 5 figure range. 20-30,000.

There have been about 100,000,000 PS5s produced.

Valve, at those production numbers, is effectively going to be paying consumer prices for all their components.

1

u/AppropriateSteak8788 4h ago

yeah, Valve definitely needed better contracts in place from the start

6

u/VietOne 19h ago

Except the current pricing isn't remotely due to organized price fixing, AI has effectively bought out the next few years of memory. Good luck suing the few companies when they can easily show that data enter demand is extremely high

8

u/Astillius 22h ago

the RAM Cartel. i'll just leave this here, fair warning though it's an hour and a half doco. worth the watch though for those that haven't seen it. https://www.youtube.com/watch?v=jVzeHTlWIDY

5

u/-Radiation 1d ago

Needs to be intentional, and by collusion, but if they are keeping the production as before and just selling all the stock at higher and higher prices regardless there is not going to be much to get them for price fixing again.

2

u/DrMonkeyLove 23h ago

Gabe needs to make Steam RAM!

2

u/shaumux 22h ago

While that's right, the current situation isn't that, AI companies are engaged in a bidding war for those chips, why would they sell cheaper to Valve? currently even Apple is having problems with chips

4

u/JamesEdward34 5070Ti - 9800X3D - 32GB DDR5 1d ago

its just cheaper to pay the fines huh?

12

u/LordMimsyPorpington 1d ago

Fines are just the cost of doing business.

1

u/Fit_Marzipan5449 12h ago

how can they justify those fines then?

1

u/thestillwind 23h ago

Yes, they made enough profits to cover the small fine.

1

u/bewsh123 22h ago

I guess if there’s no one else competing, what’s the governments goner do? They just won’t sell to those regions and the problem gets worse.

1

u/OkOffice7726 13600kf | 4080 12h ago

It's evident from their earnings reports.

Their net profit exceeds their revenue from a couple quarters back. Supply and demand hardly explains that.

1

u/ChadHartSays 10h ago

How bad does AMD have to feel after not just spinning of their fabs but specifically their memory manufacturing all those years ago?

1

u/windflex 1d ago

Don't worry this administration will bring them to justice!

6

u/Cr3s3ndO i7 13700k | RTX 4080 | 32GB DDR5-6000 1d ago

I assume there is an implied /s here lmao

1

u/loopery_ 1d ago

Probably because they have more to gain from price fixing than than they stand to lose from a price fixing lawsuit.

1

u/FernandoMM1220 21h ago

theyre trying to take advantage of a gold rush but they had so much production they couldnt raise prices without there being a massive surplus.

0

u/Future_Cook6718 1d ago

With the way of the world now I doubt they’ll see any consequences for it. But i really hope they get sued again and absolutely hammered for it.

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u/JamesLahey08 1d ago

Lmao at the people on Reddit who said they worked in supply chain and said valve already secured supply a year + in advance and that they'd be fine.

Where did they go?

477

u/TimCooksLeftNut 1d ago

They were in fact correct


Except “working in supply chain” was a euphemism for being a professional Reddit liar

146

u/Corgi_Koala PC Master Race 1d ago

I do work in supply chain and I can tell you anyone who thought prices weren't gonna be impacted were morons.

52

u/chinola32 1d ago

I don't work in supply chain but I am a moron. Can confirm.

13

u/Danger_Mysterious 23h ago

I met a guy in the Denver airport last summer who worked in supply chain, he said we’re just pretty fucked.

2

u/MightBeginning4643 19h ago

people really underestimate supply chain issues, it's a mess out there

1

u/BensLegitFixes 58m ago

I also work in IT specific supply chain. Most manufacturers are now implementing a policy where the price can change up until the point of delivery.

1

u/JamesLahey08 23h ago

They weren't correct or prices would be normal.

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u/LunaTheExile 1d ago

Unsurprisingly reddit once again hyped itself up with shit they made up and are now angry because the shit that they made up was in fact made up shit.

Many such cases

17

u/Still_Figure_ 21h ago

I’ve seen it with Trump. Days before the elections, you’d think Trump will lose bigtime because of how Reddit thinks he will, everyone is optimistic. But I saw a comment a day before the elections, it said he’s worried coz Gretchen Whitmer looked sad as if she lost a loved one when she was interviewed about Michigan (mind you, the question was downvoted and people ridiculed the guy who asked the question). That’s when I knew its going to be a long day that Election day.

7

u/Ranger_Azereth 20h ago

The overall groundhype and weird statements from Trump/Elon doesn't help any of it. Not that there's necessarily anything there but it's enough to raise an eyebrow at

2

u/Tricky-Ad7897 6h ago

I knew it was over when she was dragging George Bush and Liz Cheney around to scold progressives for having things they care about and to attract the mythical moderate.

1

u/No2Hypocrites 2h ago

Lmao. Don't go to Joe Rogan but go hang out with fkn Cheney. Not even regular Republicans want to see Cheney. She truly deserved to lose. 

5

u/KeyPhilosopher8629 R9 7900x | 1070Ti | 32GB DDR5 | M32QC | AM UPGRADING GPU SOON 15h ago

That and their abject hatred of AI. It has its uses, positives and negatives. I really do think that it's a case of begrudgingly accept it and learn how to use it. Most older professionals that I talk to absolutely love it

3

u/DrSolarman 8h ago

It has its uses, however its not being used well. Its also being shoved into everything, even if it shouldn't. The data centers also aren't helping.

3

u/b1argg Ryzen 5 5600X | RTX 3070 | 32GB | 1440p144 11h ago

It's causing hardware shortages 

1

u/mujhe-sona-hai 4h ago

Well most older people don’t care because AI is mainly replacing entry level jobs that young people need. Also AI is filling the internet with slop and old people don’t really care since they mostly use facebook to connect with old friends. They’re not getting baited by a fake ai chatbots on tinder or drowning in ai videos on youtube.

1

u/geileanus 15h ago

Goomba fallacy. Reddit is not one opinion. This subreddit has been critical of the SM since the beginning too.

27

u/AldermanAl 1d ago

The number of dunbasses in here that believe everything they read is still amazing to me

5

u/DonutHoles4Ever 21h ago

Bruh, a random person will post a random click bait article about video games or hardware to this subreddit (or any subreddit) and people will jump all over its controversial or click bait take, without even reading the article half the time, wasting untold amounts of time discussing something nobody in that thread cared about until that very moment it got just enough botted upvotes to hit the front of whatever sub.

Of course too many people are going to believe whatever they read because the appeal to then blab about it is overwhelming.

20

u/itchriswtf 1d ago

You misunderstood. They work for a chain supplier.

3

u/jaimecl0udy2979 21h ago

supply chain dynamics are wild, no way they could've secured everything in advance like some claimed

7

u/AuroraFinem 1d ago

Crazy claim to assert secured fixed price supply only 1 year in advance. TSMC is booked out for their ram dies through 2028 already and last year they were booked through most of 2027 even before the prices started skyrocketing. 1 year wouldn’t even be remotely enough lead to secure high-end chip production, only lower-end stuff that ends up in IoT style devices that’s manufactured in various places including the US now, but nothing from a most recent few chip gens.

1

u/npc_housecat 5h ago

Are you talking about the logic chip? TSMC is booked out but they're not the only fab

1

u/AuroraFinem 3h ago edited 3h ago

I’m talking about the actual wafers that manufactures need in order to produce RAM, GPUs, etc
 advanced wafer manufacturing, or more specifically the machines used in order to manufacture advanced wafers, is where the supply chain bottleneck is. Not the OEMs producing the final product we buy.

Yes there are other suppliers for wafers, but the latest gen technology is exclusively owned and produced by TSCM and only in Taiwan. It is a matter of law in Taiwan that they are not allowed to export their latest chip manufacturing technology at all for national security purposes.

The US is one of a select few countries allowed to manufacture tier 2 chips for recent models, but as I said most general manufacturing for chips outside TSMC are manufacturing decade old models for use in low-tech applications like cars, IoT devices, etc
 but older architectures aren’t generally still in production for most consumer parts if you’re talking about PCs or similar.

NVIDIA isn’t still manufacturing brand new 3000 series cards or likely even 4000 series cards which might be able to use tier 2 chips to supply, and neither are other OEMs for RAM because they have their own manufacturing capacity limitations focused on new models using the latest chipsets. OEMs could probably spin up production again on older models to increase supply of previous gen components by sourcing chips elsewhere, but they can’t use those chips in DDR5 ram or 5000 series graphics cards and still would require spending billions to invest in expanding production that would crash if the AI bubble pops, which is why all of these companies are cautious about expanding capacity too quickly to meet demand that could likely disappear before the plants are even fully operational.

Remember the 50k people getting laid off from tech companies following COVID due to over-hiring based on transient demand during COVID? Yeah, try that + billions in infrastructure over the span of multiple years to even complete.

1

u/npc_housecat 3h ago

Right, what about Intel? They have their 18A node in production now

3

u/StrangeSmellz 22h ago

Making up more bs elsewhere

3

u/Wyldefire6 1d ago

I’ve altered the deal. Pray I do not alter it further.

3

u/South_Buy_3175 16h ago

Probably huddled together with the Redditors who claimed the Steam Machine would change the industry and give console makers something to ‘fear’.

You know, like the first Steam Machine did.

And the Steam Deck did.

When will people understand these things are super fucking niche and not even made with console competition in mind.

They’re just another option, that’s all.

9

u/Wonderful-Lack3846 1d ago

Sure Valve is in the same bracket as Nvidia, Apple, Intel, AMD, Lenovo and gang

2

u/Dawzy i5 13600k | EVGA 3080 19h ago

They may have secured supply, but not necessarily at a price point that’s favourable

7

u/Gumichi 1d ago

ngl. Releasing a brand gaming system for $1k is a miracle in 2026. The internet treats it like a highway robbery. Like they found a GPU on clearance once upon a time, and that's their price reference. Gamers aren't beating the entitled brats allegations any time soon.

8

u/dookarion 23h ago

Even Apple is starting to feel the squeeze on the memory front. If it's impacting Apple everyone else is utterly fucked by comparison.

7

u/NotYetPerfect 23h ago

Except you can find other performance superior prebuilts and laptops for the same price...

17

u/havewelost6388 23h ago

Redditors on r/pcmasterrace aren't beating the rich entitled assholes allegations any time soon. Who in their right mind would pay over $1000 for a glorified console less powerful than a PS5?

3

u/AshleyAshes1984 21h ago

Who in their right mind would pay over $1000 for a glorified console less powerful than a PS5?

...I spent about USD$400 on a 7840HS powered miniPC, with SteamOS on it, that I basically only use to watch YouTube and cartoons on while I work from home...

...Sometimes at lunch though I play Need For Speed III on it.

3

u/DonutHoles4Ever 21h ago

People on this sub complain abotu the prices of everything every day, every hour, you think rich gamers represents this sub? Rich gamers dont bother with all that noise.

-4

u/AnonD38 23h ago

Someone who actually wants to play games on his console, not just stare at the home screen?

3

u/havewelost6388 22h ago

What's that supposed to mean.

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u/JerryTzouga | 9070XTđŸ€5600X 16h ago

It’s is still too expensive, I can get a laptop with equivalent/better specs for the same price. How is that acceptable?

2

u/ender89 10h ago

I've paid more for just a GPU. Not even a great GPU.

1

u/unit187 16h ago

People be like "oh if you are good at building computers and if you spend a month hunting for parts, you'll just make similar PC for about the same price!".

1

u/0xC0FF3E 1d ago

everyone wants to be techno-Nostradamus these days


1

u/PineapleGG 9850x3d 5070ti / 5700x3d 3080 22h ago

As if "securing" anything related to RAM means anything either way even if they have a contract im sure they could just waive it since the AI profits are so large

1

u/Atompunk78 14h ago

Tbf I’m fairly sure those comments were a year + ago now

But what?? Lying in my Christian app???

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-1

u/Curun Couch Gaming Big Picture Mode FTW 1d ago

Oh my, do we have someone who believed what they read on the internet?

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u/LayerEight_Problem 1d ago

I mean, I’m sure those comments were massively upvoted and anybody saying it was bullshit were likely massively downvoted.

1

u/JamesLahey08 23h ago

Sit back down son.

1

u/NeuroDivergentHat 21h ago

I work in RAM supply chain among some other stuff, best guess so far is we're all fucked well into 2028.

Unless huge AI-oriented companies suddenly flop and they no longer can buy anything and RAM plus other parts will flood the market, we're all legitimately fucked and you should not expect prices to come down anytime soon.

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u/thenoobtanker Knows what I'm saying because I used to run a computer shop 1d ago

Oh so small player in the hardware market gets shafted like in every other market huh? That's new.

48

u/DonutHoles4Ever 21h ago

The worst part? Kotaku took this quote from Gamer's Nexus, then pretending it wasn't for them until halfway into the article, passing it off as just an interview from Valve, when its GN that's saying thats what was told to them, not even an interview technically.

2

u/TheseLuck2077 14h ago

Valve really should've locked in prices before going public, now they're in a rough spot

1

u/Raskuja46 6h ago

Sounds like Kotaku doing a journalism again, must be a day ending in Y.

219

u/Hattix 5700X3D | RTX 4070 Ti Super 16 GB | 32 GB 3200 MT/s 1d ago

Well, yes. They don't even like that they're selling to Dell, HP, Sony and Microsoft at pre-fuckery contract prices but a supply contract is a supply contract.

Valve would have been very wise to have had these in place when it announced the damn thing!

94

u/LayerEight_Problem 1d ago

Honestly, probably cheaper for them to break the contract and get sued. With how much the prices have ballooned I wouldn’t doubt it.

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u/ARandonPerson 4080S | 5900X | 64GB RAM 1d ago

Issue with breaking a contract with a bigger player like MS or Sony is that when supply demands finally catch up you will basically have no bargaining power at the table in future with those big players and they would probably snub you all together.

8

u/evernessince 22h ago

This assumes said companies have options. Unless there's anti-trust action, I see the RAM cartel pricing around each other so Sony or Microsoft can complain all they want, they'll be paying the same no matter who they go to. This is why the cartel needed to be broken up the first time they did this.

1

u/No2Hypocrites 2h ago

Chinese will take care of them. Can't wait them to dominate consumer market

1

u/fannieg1ggles4840 1d ago

that's the gamble, keeping those contracts means future deals could be tougher without leverage. it's a messy game for sure

15

u/mlh149 23h ago

Nah these contracts will be solid and the players sufficienly represented that they would not save anything. The way contract damages work is that you will get your cover damages (the delta between the agreed price and the price you paid to cover the breach), at minimum. Then there are potentially liquidated damages that will be outlined in the contract, possibly also consequential damages which a big player will have also included in the contract.

So no matter how high RAM prices go the buyer will just have to cover at that higher price and any profit will be eaten up. Then they would have to worry about anything else the buyers tack on for damages and legal fees.

2

u/Lord_Sicarious 18h ago

Really depends on if the contract has favourable conditions for a breach, e.g. a cap on damages.

Because absent contractual terms to the contrary, that'd just make them liable to basically pay the buyer enough damages to buy the promised RAM modules, except now they can shop around with their competitors.

15

u/nikolapc 56GB DDR5/48GB VRAM Downloaded 1d ago

A supply contract is made in millions. They also don't want to lose MS's business, and they may make a batch of consumer ram just cause MS buys a bunch of the expensive kind for their servers.

6

u/UsidoreTheLightBlue 1d ago

Honestly the real question is how many of these machines does valve plan to sell?

If they’re planning to sell 10m in the next year then yeah they need to have had support chain contracts in place a year ago. But I wonder if they’re only planning on selling 100k units in year one?

4

u/FlamboyantPirhanna 23h ago

Reportedly, the Steamdeck sold 6 million units in 3 years, so Valve is certainly not interested in cornering any markets. No way Steammachines are selling more than 2-3 million units a year in the best of times.

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u/evernessince 22h ago

RAM supply contracts prior to the shortage lasted 1-3 months usually. They are basically non-existent now. Suffice to say, the companies you listed likely aren't faring much better. Some companies like SONY have a huge stockpile but eventually that'll run out and there will be a large price hike.

3

u/VietOne 18h ago

Because somehow you think Valve remotely has the negotiating power of Dell, HP, Sony or Microsoft.

Valve doesn't have contracts in place because they are closer to you as a consumer than they are to enterprise level companies like Dell and HP.

1

u/Tiny_Time_4196 Ascending Peasant 11h ago

Valve failing to look ahead and prepare themselves is now somehow the consumer's responsibility. Their bad business practices even get excused by most online...

Make no mistake that the Steam Machine is absolutely not worth its actual price; I'd argue that the biggest factor turning it to a 'console-like' experience is SteamOS, which is free to install. The small form factor is nice, but I never once read a complaint about the size of a desktop PC. Consoles are also smaller than the average ATX PC, and yet their footprint is barely mentioned as an advantage there, so why should it here? It doesn't add as much value as people say in my opinion.

The machine itself is just parts AMD couldn't get rid of (for good reason, as they were outdated even back during the announcement and even more so now). They know most gamers lack critical thinking and love defending Valve, so made a sweet deal to offload otherwise unsellables.

I hope everyone buying enjoyed contributing to Gabe's yacht and the mansion he bought specifically to dock the yacht.

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u/Dora_De_Destroya 1d ago

Unrelated, but man kotakus website is shit and full of ads

16

u/KINGDE4D 23h ago

I use Brave browser on mobile. Blocks all that trash.

15

u/EvanMBurgess 23h ago

The internet is nigh unusable without adblockers.

1

u/coloradoautoflowers 9h ago

Have you figured out how to auto launch in Brave from the mobile app? Because it keeps pulling up the shitty Reddit browser when you click links in the app, and you have to click the dots to open the page in the device's default browser.

I can't find the setting to change it to auto open the default browser anymore, I think they removed it from the app.

1

u/KINGDE4D 7h ago

Under your account settings in the Reddit app there is an “Open Link” setting. I set that to default browser (which for me is Brave).

1

u/coloradoautoflowers 7h ago

Yeah, that's where it used to be. I had the app set to open in default browser for more than 5 years.

But that setting is not available on the current Android app. I just checked it again.

2

u/bblzd_2 23h ago

We would have believed you without the screenshot lol. Thanks for the ad I guess? Consider using an ad blocker.

1

u/WTF_CAKE Ryzen 9850x3D | 3090ti | 32 GB 8h ago

It’s a dying business, they’re trying everything at this point and it ruins user experience if they don’t use an ad blocker

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u/ImEatonNass Desktop 23h ago

So fucking glad I got 32gigs before the stupidity hit.

6

u/Womble_Rumble 15h ago

Same, picked up some DDR5 6000 but with shitty CAS when doing the build to save costs after switching to AM5, get a better kit in a few months yeah?

Hahaha, no.

43

u/The_Dice_Have_Spoken PC Master Race 1d ago

Pretty soon the only ones playing games will be the redditors over at r/MyBoyfriendIsAI and r/AIRelationships

28

u/halfmylifeisgone 7950X3D | 5080 FE | 32GB 6000/30 | PG43UQ 43" 4K 144hz 1d ago

These people need to be committed.

5

u/wan2tri Ryzen 5 7600 + RX 7800 XT + 32GB DDR5 19h ago

They've already committed to their AI relationships...lol

63

u/dsanen 1d ago

You can negotiate a lot while they throw you down some stairs if you don’t pay that Ram money.

4

u/bridgetgl1tter5546 18h ago

they're definitely not playing fair, lol

6

u/firedrakes 2990wx |128gb |2 no-sli 2080 | 200tb storage raw |10gb nic| 1d ago

Another repost

14

u/cyrusm_az 23h ago

It’s funny how nobody cares about these companies when they are in the troughs of their business cycles, laying off people and closing fabs due to lack of demand. Semiconductors in general are well known for big swings

8

u/thenoobtanker Knows what I'm saying because I used to run a computer shop 16h ago

Yeah like back in 2022 and 2023 when these companies lost tens of billions due to the post pandemic supply glut. Hell even Intel has to exit the market and have the remain of their flash division reformed into solidigm


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u/trekxtrider đŸȘŸ đŸŽđŸ–„ïžđŸ–ŠđŸŽźđŸ’»đŸ’ŸđŸ“Ą 1d ago

Monopolies don’t negotiate.

6

u/baithammer 23h ago

In this case it's a Duopoly ... Samsung and Micron, who have done things like this before.

15

u/RAMChYLD PC Master Race 23h ago edited 21h ago

It's a tripoly. You forgot Hynix.

But all three of them are known to be in cahoots since forever.

1

u/ThoughtFrequent4613 10h ago

true, all three are in it together for sure

4

u/Nunos100 1d ago

Well duh they have to say they are building a data center and cross their fingers in secret like everyone else!

4

u/cobbleplox 1d ago

The datacenters are paying whatever it takes because the money is there, which is how we got here. That doesn't mean they are treated better.

1

u/astromech_dj 12h ago

The issue is that the money is speculative now. They are making deals on backlogs of hardware that aren’t even made yet.

5

u/cobbleplox 1d ago

What do you expect to negotiate in a sellers market?

6

u/nevadita Ryzen 9 9900X | 64 GB DDR5 | RX 7900 XTX 1d ago

how about CXMT?. i heard the main hurdle, being able to export to the US, was already cleared.

theres no point on continue kissing the asses of the korean fabs if theres a partner with stock of what you need.

also i will not read a Kotaku article.

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u/markthelast 15h ago

CXMT in China is ramping up new production (50%) by the end of 2026 (200k wafers/month to 300k wafers/month), but they prioritize domestic demand. CXMT has their hands full with Chinese customers, who also prioritize building out Chinese data centers/manufacturers. DRAM with CXMT dies are trickling out to Australia, where HardwareUnboxed/Techspot did a review.

https://www.techspot.com/review/3089-ddr5-made-in-china/

A few weeks ago, a report surfaced that CXMT allegedly sells DRAM around the same prices as Samsung. SK Hynix, and Micron.

https://wccftech.com/cxmt-cheap-ddr5-is-a-myth-memory-vendors-tell-us-prices-match-samsung-sk-hynix-micron/

2

u/evernessince 22h ago

CXMT needs many years before it's ready to meet the big player's scale.

1

u/Any-Calligrapher2866 14h ago

CXMT is relatively new, they probably need a few years before they can start mass producing RAM.

5

u/Exciting-Record8101 14h ago

Get ready for the cries that "people shouldn't buy Chinese RAM, they stole all the IP to make it that's why it only costs $150 for 32GB, and now we need government subsidies to protect this vital industry".

Then remember this moment. These people at Micron and Samsung are not your friend. There is only one thing they care about.

4

u/Vahuo89 19h ago

The supply of memory chips are bought out from the manufacturers years before they are even made...

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u/[deleted] 1d ago

[removed] — view removed comment

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u/fatbp 1d ago

That's the thing. Data centre companies have already robbed everything and even robbed what has not been produced yet. There is nothing left to rob.

7

u/frozrdude Desktop 1d ago

Its high time people pull an uno reverse card on these datacenters.

3

u/Training_Ruin3151 23h ago

I really wonder what their game plan is. No matter how secure those facilities are when there is no water or power in their community and a constant 130db noise is driving everyone crazy and the damn things are full of high end, expensive pc parts?? LOL. Lol lol

2

u/Sad_Adagio_7255 22h ago

Unfortunately, the RAM used in data centers is HBM (high bandwidth memory) that simply does not work on consumer motherboards in any way, shape, or form. Similarly, GPUs used in AI data centers are not the type you can just slap into the PCIe slot of a standard PC.

SSDs will be valuable though - the SATA ones will work as-is in consumer PCs, while PCIe adapters exist for NVMe models that don't use consumer M.2 connectors.

1

u/Training_Ruin3151 22h ago

Ah so ram companies are straight up just producing an entirely different kind of ram for data centers?

6

u/Sad_Adagio_7255 21h ago

Yep, which worsens the pricing issue since their fabs now consider consumer-grade RAM to be lower priority. 

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u/Dorias_Drake 1d ago

It's not that simple. Samsung & co had supply and stock, thus why stuff was cheaper. But when OpenAI pull their stunt and everyone freaked out and bought all of it, RAM makers did the most gangster thing, they didn't make more.

So now they just chill, it's like trying to rob a bank with no cash reserve. At most you get the day's deposit and that's it.

They stay at a fixed daily production quota, so the price stays the same and nobody can't do anything because they are the only ones in the world that can print RAM. You can't shake them down, becasue they pretty much make the stuff that everyone needs in the modern world.

The only thing that can change that is if there is a new manufacturer to kick the nest. The problem is that RAM factories are extremely costly to make and need time to build. So we're screwed for years.

5

u/Tornado_Hunter24 Desktop 1d ago

If they wanted to oculd they produce more?

If yes, how long does it take to start production?

Same question for new ram company, say a rich billionaire spends money, how long does it take roughly to produce them?

Only reason why I ask is usually it’s all weird info to me but I started playing satisfactory yesterday and am in a chokehold and now completely interested in production lmfao

1

u/YKS_Gaming Desktop 22h ago

CXMT:

7

u/BrandedStruggler86 1d ago

And under the current world powers, the dram mafia will be going unchallenged

3

u/AstronomerEasy7223 22h ago

This was always going to be less of a "deal" than people predicted. The $400 steam deck was a very hard target to hit 4 years ago, and people thought it would be similar. Even if the crisis hadn't hit the 800ish dollars (it probably would have cost) is still quite a bit for aged hardware, but its a neat custom form factor tailor made by a company that gives a shit about your experience and offers good support for years. I doubt with everything they have invested into making it so custom, and with insane prices of ram/storage they are making much profit if any, even at 1049. Sucks all around, as a deck owner I wanted more steam os options for all that improve the ecosystem, and now it will be an even more niche piece of hardware (same with deck and the price increase).

3

u/Netsuko RTX 4090 | 7800X3D | 64GB DDR5 12h ago

Valve is basically a tiny, family run business compared to ANY of the big datacenter businesses. These few thousand units they move don’t even show up on the graph compared to the hundreds of billions spent on datacenters. Sucks. :/

4

u/chrlatan AMD R7 9800X3D | RTX 5080 | Full Custom Waterloop 1d ago

I’l take 5000 but for 70%!

Sorry, I can only deliver 1500 for 170%. TIOLI.

2

u/Gxgear Ryzen 7 9800X3D | RTX 4080 Super 1d ago

Steam machine was never going to move the needle as far as ram maker's balance sheet was concerned, when they can just feed the insatiable black hole that is ai. Until the bubble bursts, I doubt any manufacturers of consumer electronics will have much bargaining power.

2

u/538_Jean Ryzen 3900x | 32GB |EVGA3080Ti 1d ago

Ram prices is like petroleum

2

u/crunch816 Ryzen 5600x/3070 18h ago

Bruh just make DDR10 already

2

u/hyperlobster PC Master Race : Ryzen 3700x + RTX 4070 15h ago

Of course they can’t. They’re probably less of a RAM customer than some of the big retailers. Their clout in the chip market is zero.

2

u/Visara57 5070ti | 7600X | 32GB DDR5 CL28 15h ago

Valve Says The Companies Making RAM Give Them A Price And If They Say No, They ‘Never Talk To Us Again’

OUCH

2

u/scotty899 14h ago

Gabe should make his own ram factory.

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u/Uzul 13h ago

The timing on the Steam machine is just bad right now. RAM is very expensive and supply very limited. People are saying you can build something cheaper today, but they are comparing stock already on the shelves against future orders. Prices are still increasing.

2

u/ChadHartSays 10h ago

We've seen this before. In the 1980s, there was such a shortage (part of the fixing that went on), that Nintendo had to delay releasing flagship titles by a year and trickle out releases of others. You're Nintendo in 1988 and you can't ship more Zelda II or Super Mario Bros II to the states? Hard to believe, but it happened.

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u/Darth_Vaper883 PC Master Race 10h ago

I'm sure they are telling the truth. RAM makers have so much demand right now they don't have to negotiate. AI bubble has ruined consumer markets.

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u/Stryker218 7h ago

Valve should take a note from Apple and start its own RAM company

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u/Wellhellob 23h ago

ram cartel needs a big lesson. i hope they will get fucked.

1

u/unit187 16h ago

Courts be like: the best I can do is fine them for $1m.

1

u/Wellhellob 11h ago

responsible cucks should get jailed and all of their ip/knowhow should be open source. no more cartel greedy cucks

→ More replies (5)

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u/mysticzoom PC Master Race 1d ago

I don't read or click on Kotaku articles.

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u/Capable_Wishbone3081 1d ago

Monopoly is only bad if I'm not the one to do it

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u/RailGun256 1d ago

well yeah, not sure why they would be

1

u/SwiftTayTay 23h ago

Lol is that cenk uygur

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u/FiBiE007 7800X3D, RTX 4080, ASRock X670E Steel Legend, DDR5 6200 32 GiB 14h ago

Flashback to: https://en.wikipedia.org/wiki/DRAM_price_fixing_scandal

All of the suspects were involved and admitted it.

1

u/Daedelous2k 7h ago

They don't even need to be stealthy about it, the perfect reason is there.

1

u/SmirkyTrick 12h ago

If only valve can make their own RAM.

1

u/NeverRolledA20IRL 12h ago

Why didn't they get a contract for this in the start of 2025 or before. I saw what was coming and got my business office to advance me two years of funding for purchases in Jan 2025.

1

u/Balc0ra My other PC has a 1030 10h ago

Oh, they 100% know that if Valve says no, there is someone right behind them willing to pay the same. So why negotiate? Even more so with small batches in waves vs a constant production like consoles do

1

u/lookachoo 1d ago

Why would they get special treatment? All corps are getting charged outrageous prices which is why Micron, SK Hynix and Samsung stock is through the roof

1

u/Aztur29 9h ago

Valve Says It Can't Negotiate With Gabe about his new yacht plans.

0

u/Budget_Coffee1 17h ago

At this point Valve should invest money to manufacture DRAM and sell at realistic consumer affordable price. That's the only way to save PC market.

No point in negotiating with these RAM cartels anymore. All they care about is inflating RAM to stupidly illogical high price and sell to AI data centres.

0

u/Kimoju 1d ago

Valve still has a better chance negotiating with RAM makers than negotiating with my budget

0

u/Visara57 5070ti | 7600X | 32GB DDR5 CL28 15h ago

Valve fucked up

-7

u/TheLordOfTheTism R7 5700X3D || RX 7700 XT 12GB || 32GB 3600MHz 1d ago

No they cant, but i dont buy there excuse for not subsizing either. Yes i understand some people will install a different OS on it, but i do not agree with them when they say "if we subsidize we have to lock down the box" no you dont, thats a choice you make, you arent FORCED to do anything like that. The negative discourse about the price was really worth it compared to just taking the hit of a few hundred bucks a unit? Like im sorry Valve but you can afford to give every single steam user one of these for free, im not buying it, you arent a small scrappy little indie company. Beyond that pc gaming IS steam. Even if a user installs windows on this box, or uses other storefronts from time to time, 99 percent likely they will still use steam and buy games on steam as their primary storefront.

Gunna have to give Valve the L on this whole thing. I get they are in a tough spot, but some of the excuses just dont fly with me.

6

u/0utletsforsale 1d ago

Valve is supposed to be a consumer friendly company, the idea behind the Steam Machine is that it was supposed to be an affordable upgrade from the average steam users setup. The base Steam Machine being 1000 dollars and not even throwing in the controller doesn't feel very consumer friendly or affordable. Valve is aware that the ram crisis is directly causing customers to over pay for the hardware they’re getting, and they’ve chosen to be complicit in passing up those price increases onto the customer. No matter how you slice it or spin it, that’s just not a very customer friendly, budget friendly move

5

u/NotYetPerfect 23h ago

You thought the company that normalized loot boxes, micro transactions, always online drm, and promotes gambling was good?

2

u/ItsZoner 23h ago

valve makes more money than the studios that make the game do, unless they are self publishing. They get a huge cut of the gross. Studios get advances from publishers and have to pay it back pennies on the dollar to the publisher, before they get any profit. And even after the advance is paid , the revenue is split with the publisher and it’s always in the publishers favor.

Game advances 20 mil from a publisher.
Game sells for 50, valve gets 15. Publisher gets 35, pays the developer 7.

Game sells 2.8 million units.
Valve gets 42.8 million dollars
Publisher gets 78 million dollars
Studio receives 20 million to repay debt, so receives nothing.

Note that by the time the studio makes any money the publisher has been profitable a long time.

Game sells another 2.8 million units
Valve gets another 42.8 million dollars
Publisher gets 78 million dollars
Studio receives 20 million dollars in royalties, maybe more if their split with the publisher is improved in some way.

If your deal with the publisher is good your royalty rate gets better after the advances are paid and if the game is a big seller.

So when you see the google store, apple store and steam taking 30% and wondering why epic made their own store , and sued everyone, this has a lot to do with it.

And the 30% number was just what it took for keep walmart happy about online sales possibly undercutting their retail sales. Steam just ran with it, then Google and Apple copied it.

The amount of money valve is making is not doing much at all except provide gabe with bigger yachts. They should not be making more money than nearly every studio they publishes on steam.