Nvidia CEO Jensen Huang captivated the CES 2025 audience with an unexpected revelation during his keynote address. While the announcement of new hardware products, including the latest RTX 50 series graphics cards, was anticipated, the pricing strategy emerged as the true showstopper. Except for the premium RTX 5090, most models demonstrated enhanced performance without the customary price increases. The announcement of the RTX 5070's US$549 price point triggered spontaneous applause, marking a standout moment in the presentation.
Performance meets affordability
In a bold comparison, Nvidia demonstrated how the entry-level RTX 5070 matches the performance of the previous-generation flagship RTX 4090. The company emphasized that the RTX 5070 achieves this while consuming half the power and costing just one-third of its predecessor's price.
Competitive pricing across the lineup
The pricing structure reveals a strategic shift, with the RTX 5080 and 5070 Ti positioned at lower price points than their predecessors, despite the RTX 5090 commanding a premium over the RTX 4090. The RTX 5070 maintains price parity with the RTX 4070, delivering enhanced performance at no additional cost.
Industry impact
The aggressive pricing strategy has caught the attention of PC manufacturers. Representatives from various brands have privately acknowledged Nvidia's generous approach, particularly as the simultaneous announcement of RTX 50 series laptops creates additional pricing considerations for their product lines.
Gaming community response
The announcement has resonated strongly with the gaming community, particularly among RTX 30 series users who now see a clear upgrade path. Gamers previously torn between the high-end RTX 4090 and the more affordable RTX 4070 or RTX 4070 Ti can now achieve premium performance with the RTX 5070 at a fraction of the cost.
Market analysts suggest that Nvidia's biggest challenge may lie in meeting demand rather than driving sales, as the favorable price-to-performance ratio has already generated substantial market interest.