Do retailers have to eat the cost when newer GPU's come out?

[magellan]

When newer GPU's come out and drive down the prices of older models, do the retailers just have to eat the cost? Or do the manufacturers of video cards allow them to return their old stock (maybe for some sort of discount on newer models)? Or is their only option to somehow take it as a loss on their taxes?

 

[Robert17]

Generally there are contractual agreements that are entered into that give some type of return or rebate policy to retailers in order to keep them from taking the entire hit. Some inventory is consigned as well depending on the item's value. Marketing incentives often offset risks as well.