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GeForce GPUs are 80% of EVGAs revenuebut its cutting ties with Nvidia anyway

End of a time

EVGA will continue selling current-gen GeForce cards until it runs sold-out.

GeForce GPUs are 80% of EVGA’s revenue—but it’s cutting ties with Nvidia anyway

Graphics card manufacturer eVGA has made a name for itself manufacturing and selling Nvidia’s GeForce GPUs for just two decades, including a few of the more attractively priced options in the marketplace. But based on the YouTubers at Gamers Nexus,analyst Jon Peddie, and an EVGA forum post, EVGA is officially terminating its relationship with Nvidia and can not be manufacturing cards in line with the company’s RTX 4000-series GPUs.

EVGA’s graphics cards have exclusively used Nvidia GPUs since its founding in 1999, and in accordance with Gamers Nexus, GeForce sales represent 80 percent of EVGA’s revenue, causeing this to be a momentous and arguably company-endangering change. But EVGA CEO Andrew Han told Gamers Nexus that your choice was about “principle” instead of financialsHan complained in regards to a insufficient communication from Nvidia about services, including information regarding pricing and availability.

Nvidia’s pricing strategy was apparently another sore point for EVGA. Nvidia’s first-party Founders Edition cards could often undercut the pricing of cards provided by EVGA along with other vendors, forcing them to either lower prices or lose sales consequently.

Nvidia might not be entirely responsible herethe wider dynamics of the GPU market may also be tough to navigate. As Peddie highlights, even while GPU costs have risen, income for the board partners that manufacture Nvidia GPUs have been down. Modern high-end GPUs have massively higher power, cooling, and PCI Express signaling requirements than cards from just a couple years back, making them more costly to create and manufacture, and reporting concerning the RTX 4000 series indicates that that trend will still only continue.

Profit margins for Nvidia's add-in board partners like eVGA have been sinking for a while.

Enlarge / Income for Nvidia’s add-in board partners like eVGA have already been sinking for some time.

Also it probably doesn’t help that the GPU market has been plummeting back again to earth this season, after over per year of limited stock and inflated pricing. Sliding cryptocurrency values and the Ethereum cryptocurrency’s move from GPU mining have both flooded the marketplace with secondhand GPUs, which includes subsequently affected demand for new GPUs. In Nvidia’s last earnings call, CEO Jensen Huang complained of “excess inventory” of RTX 3000-series GPUs that managed to get miss its quarterly revenue projections by $1.4 billion.

For Nvidia’s part, its public stance could be summed up as “such a long time and all the best.”

“Weve had an excellent partnership with EVGA through the years and will continue steadily to support them on our current generation of products,” Nvidia spokesperson Bryan Del Rizzo told Tom’s Hardware. “We wish Andrew [Han] and our friends at EVGA best wishes.”

The finish of the EVGA-Nvidia relationship couldhurt NvidiaPeddie says that EVGA represents about 40 percent of Nvidia’s GPU market share in North Americabut in the medium term the business is unlikely to be fazed much. Nvidia has other partners, and despite differences in cooler design and clock speeds, GPUs in exactly the same series have a tendency to perform similarly irrespective of which of Nvidia’s partners actually made them. Quite simply, an RTX 3070 can be an RTX 3070, and folks who would like one are simply likely to buy one from another company if EVGA’s products aren’t available.

EVGA will continue steadily to sell its other products, including power supplies, though Han told Gamers Nexus that the business doesn’t intend to go back to the GPU market at allnot with AMD’s or Intel’s GPUs, rather than with future GeForce product generations. Han also said that EVGA would continue steadily to sell cards predicated on older GeForce GPUs, like the RTX 3000 series, until they go out of stock toward the finish of 2022. The business may also keep enough inventory of the cards on-hand to satisfy any warranty repairs or replacements for currently supported cards.

Kyle Orland contributed to the report

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