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takyon writes:

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 two decades, including some of the more attractively priced options on the market. But according to the YouTubers at Gamers Nexus, analyst Jon Peddie, and an EVGA forum post, EVGA is officially terminating its relationship with Nvidia and will not be manufacturing cards based on the company's RTX 4000-series GPUs.

EVGA's graphics cards have exclusively used Nvidia GPUs since its founding in 1999, and according to Gamers Nexus, GeForce sales represent 80 percent of EVGA's revenue, making this a momentous and arguably company-endangering change. But EVGA CEO Andrew Han told Gamers Nexus that the decision was about "principle" rather than financials—Han complained about a lack of communication from Nvidia about new products, including information about 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 offered by EVGA and other vendors, forcing them to either lower prices or lose sales as a result.

Nvidia may not be entirely at fault here—the wider dynamics of the GPU market are also tough to navigate. As Peddie also points out, even as GPU costs have gone up, profit margins for the board partners that manufacture Nvidia GPUs have gone down. Modern high-end GPUs have massively higher power, cooling, and PCI Express signaling requirements than cards from just a few years ago, making them more expensive to design and manufacture, and reporting about the RTX 4000 series indicates that that trend is only going to continue.

EVGA also makes power supplies, motherboards, keyboards, mice, etc.

Also at Tom's Hardware, The Verge, and Notebookcheck.

Original Submission

1. "takyon" - https://soylentnews.org/~takyon/
2. "GeForce GPUs are 80% of EVGA's revenue—but it's cutting ties with Nvidia anyway" - https://arstechnica.com/gaming/2022/09/gpu-manufacturer-evga-splits-with-longtime-partner-nvidia-exiting-gpu-market/
3. "Gamers Nexus" - https://www.youtube.com/watch?v=cV9QES-FUAM
4. "analyst Jon Peddie" - https://www.jonpeddie.com/news/evga-wont-offer-nvidia-next-gen-series/
5. "EVGA" - https://en.wikipedia.org/wiki/EVGA_Corporation
6. "Tom's Hardware" - https://www.tomshardware.com/news/evga-abandons-the-gpu-market-reportedly-citing-conflicts-with-nvidia
7. "The Verge" - https://www.theverge.com/2022/9/16/23357031/evga-nvidia-graphics-cards-stops-making
8. "Notebookcheck" - https://www.notebookcheck.net/EVGA-leaves-the-GPU-market-amid-conflict-with-Nvidia-and-won-t-release-any-RTX-4000-graphics-card.652925.0.html
9. "Original Submission" - https://soylentnews.org/submit.pl?op=viewsub&subid=56899

printed from SoylentNews, EVGA Exits the GPU Market, Blaming Nvidia on 2024-04-25 05:16:51