- cross-posted to:
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- cross-posted to:
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Except there’s ongoing costs to have manufacturing equipment and warehouse stock sitting around doing nothing. Plus they likely had minimum quantity manufacturing contracts signed
If Valve decided to sign hardware contracts at the prices that are forcing them to do this, that’s on them. I’m saying they shouldn’t have done that in the first place. The project should have been held off until it stabilized.
clarification: There is no way they didn’t have some form of forecasting on how much they would be paying per unit prior to signing said contracts. I agree with you, they probably have contracts in place now, but there’s no way they agreed to these contracts without knowing the price of hardware they ate buying. It’s not like they can sign a contract, and then two months later, AMD can be like, hey, by the way, you know that hardware market issue we have? Yeah, so that agreed upon rate you’re gonna have. We’re adding $300/p unit to it. Usually it’s a I will buy X amount of units at Y cost over Z period, and then they renew/negotiate the contract as needed.