News EVGA Abandons the GPU Market, Reportedly Citing Conflicts With Nvidia

[jkflipflop98]

If only there were a 3rd player in the discrete GPU business needing partners. . .

 

[spongiemaster]

If only there were a 3rd player in the discrete GPU business needing partners. . .

When Steve from Gamers Nexus brought up this point and mentioned how Intel could really use a big time competent AIB like EVGA. The response was, "That's their problem." Safe to say, EVGA isn't going to be selling Intel GPU's.

 

[Darkbreeze]

And if EVGA, with the largest market share of the AIB partners, was losing money or couldn't profit off whatever scraps Nvidia was throwing their way, then that means pretty much ALL the other AIB partners must be in worse shape. I wouldn't be surprised to see Nvidia contractually force everybody out and simply sell FE or in house models only at some point. Not sure how feasible that is, but if nobody else can make money then it might also not be terribly far fetched eventually.

 

[Makaveli]

You just wonder all the nvidia fans who were also EVGA fans, if that makes them consider looking at amd cards more seriously. Nvidia could lose market share over this one.

I think its a cool theory but in reality I doubt Die hard NV fans will switch.

I however would buy a EVGA made Radeon in a heart beat if the quality of the product is as good as their NV ones.

 

[Darkbreeze]

Not everybody that is in the market for a card is going to be a "die hard" Nvidia fan though. Most people are fans of bang for the buck and a lot of people are very sensitive to emotional purchasing, which means if they are EVGA loyalists they might very well consider blacklisting Nvidia for at least one generation depending on future developments.

 

[spongiemaster]

And if EVGA, with the largest market share of the AIB partners, was losing money or couldn't profit off whatever scraps Nvidia was throwing their way, then that means pretty much ALL the other AIB partners must be in worse shape. I wouldn't be surprised to see Nvidia contractually force everybody out and simply sell FE or in house models only at some point. Not sure how feasible that is, but if nobody else can make money then it might also not be terribly far fetched eventually.

EVGA by their own admission said they made plenty of money over the past year so. The problem is they weren't able to predict when the end of the crypto bubble would be. Being the largest AIB they are most likely stuck with the most dead inventory. So it's been painful the past few months, but don't kid yourself, they did very well for themselves overall with this generation which is what is financially allowing them to make this move.

 

[Darkbreeze]

EVGA by their own admission said they made plenty of money over the past year so. The problem is they weren't able to predict when the end of the crypto bubble would be. Being the largest AIB they are most likely stuck with the most dead inventory. So it's been painful the past few months, but don't kid yourself, they did very well for themselves overall with this generation which is what is financially allowing them to make this move.

Actually, it would seem that is not what they said, and even if they did, that doesn't mean they were going to be able to do it going forward. And IF they were not able to do it going forward, I wouldn't think ANY of the AIB partners would be able to either since they are all smaller players in the market.

What pile of money? EVGA's stated reason for bailing out of GPUs is that it is currently making losses on sales at current retail prices and manufacturing costs. The money is already burning, bailing out of GPUs is EVGA's answer to put the fire out.

Seems I too read that almost all of EVGA's profits this year came from other sectors than graphics cards. Power supplies are very profitable for EVGA.

 

[spongiemaster]

Actually, it would seem that is not what they said, and even if they did, that doesn't mean they were going to be able to do it going forward. And IF they were not able to do it going forward, I wouldn't think ANY of the AIB partners would be able to either since they are all smaller players in the market.

Watch the video from Gamers Nexus. According to Steve who was at the EVGA announcement, they did say it.

EVGA insists that it is solvent, that it has strong financial footing, and that it has liquidity that it has built up over the last year or so during this really high demand period.

What's your source that's inaccurate or that EVGA lied?

 

[InvalidError]

And IF they were not able to do it going forward, I wouldn't think ANY of the AIB partners would be able to either since they are all smaller players in the market.

Unless Nvidia put more onerous contract terms on EVGA than it does smaller AIBs.

 

[Darkbreeze]

Unless Nvidia put more onerous contract terms on EVGA than it does smaller AIBs.

Does this make sense though? Do you want to treat your best customer worse than all your other customers? Is this good business? Seems unlikely. Possible but unlikely. If anything I'd say that given that ASUS, Gigabyte and MSI are all smaller AIB players than EVGA, but MUCH larger companies in terms of product lines and overall manufacturing, things would either be equal or even in EVGA's favor in that scenario. But who knows?

 

[ingtar33]

It makes you wonder: "WHEN?", not "IF?" will nVIDIA will cut out all their AIB's and be like Apple, all Vertically integrated.

you nailed it. listen NVIDIA has been treating everyone like trash for years. from their draconian NDAs to their raping of their AIBs, they've been burning bridges for years. The green sheild is powerful, people will only buy Nvidia, and only want AMD around to keep pricing down (not that they'd ever actually dream of buying amd).

My current gpu is a nvidia, i have no interest in ever buying another gpu from NVIDIA again. Next gpu will be AMD, i've heard some wonderful rumors about their next gen cards. Shame EVGA isn't signing on to make AMD gpus, maybe i'll skip this up coming gen just to see if EVGA gets back into the game with AMD next gen.

 

[InvalidError]

Does this make sense though? Do you want to treat your best customer worse than all your other customers? Is this good business? Seems unlikely.

If Nvidia was a small company desperate to gain market share, sure. But Nvidia is out for world domination, no stranger to extreme arrogance and its ~70% market share of PC/laptop dGPUs gives it near-monopoly power: you make GPUs on our terms or you get no chips from us and lose access to ~70% of that market.

AIBs need Nvidia more than Nvidia needs them. Worst case, if too many AIBs get fed up with getting treated like garbage by Nvidia, Nvidia can shut out AIBs, contract out its FE manufacturing to Foxconn, Quanta, Flextronics, etc. and potentially get a slightly larger cut of the retail profit at the expense of not having anybody to foist their unwanted parts on and having to write those off themselves.

 

[ohio_buckeye]

With EVGA gone, you have companies like Palit, Zotac, i suppose asus, msi and gigabyte are decent cards. But EVGA cards were almost legendary for quality and warranty.

I’ve bought amd cards before. I owned a Radeon 9000 pro back when they were still ATI. My first graphics card was a savage s3 I think. But over the years I’ve owned cards from both sides including a Radeon 7950, a 1050ti, gtx 970, a Vega 56 a few years back. This time around I have an rx 6700xt. This generation I won’t say amd was not out for the money but when supply became available and push came to shove, I don’t think nvidia had the value cards. I think bang for the buck belonged solely to amd.

That said nvidia owns the high end at the moment. But their issue will likely be with the economy the way it is, at what point do people pull back spending? Case in point when I got my 6700xt, it really boiled down to it, I looked at 2080 super, 2080ti, 3060, etc. But for what I could spend the amd card just had more power for the money. Nvidia has the faster products but they like to charge for them as well. So they may need to learn to pivot for the value and mid range. Don’t get me wrong, there will be those that will spend whatever for the latest and fastest. But remember when 500-600 got the tip of the line? I looked it up, when the 1080ti arrived it was supposed to have been $699.99. Where are we now, 1200? 2000 for next gen?

Anyway I digress but even if EVGA wouldn’t go to amd, I think there are some who are brand loyal to EVGA, and if they see EVGA leave nvidia, they might consider amd if they stop to think about why EVGA said they left and whether that changes their opinion of nvidia.

 

[Gibbyness]

According to two reports on YouTube, EVGA will no longer make GPUs

EVGA Abandons the GPU Market, Reportedly Citing Conflicts With Nvidia : Read more

Well this is awkward, since I just bought a brand new EVGA card Thursday night...

Have always bought EVGA since the 2000s time line.. this sucks, I don't even know what aib to pick next. I've been an EVGA 'fangirl' too long.

Hope they work something out. If they do ever decide to go amd that'd be enough to sway me out of nvidia over to team red!

 

[Kamen Rider Blade]

If Nvidia was a small company desperate to gain market share, sure. But Nvidia is out for world domination, no stranger to extreme arrogance and its ~70% market share of PC/laptop dGPUs gives it near-monopoly power: you make GPUs on our terms or you get no chips from us and lose access to ~70% of that market.

AIBs need Nvidia more than Nvidia needs them. Worst case, if too many AIBs get fed up with getting treated like garbage by Nvidia, Nvidia can shut out AIBs, contract out its FE manufacturing to Foxconn, Quanta, Flextronics, etc. and potentially get a slightly larger cut of the retail profit at the expense of not having anybody to foist their unwanted parts on and having to write those off themselves.

Within the dGPU marketshare, nVIDIA has 80%

Spoiler: dGPU MarketShare chart 2002 -> 2022 Q2

Granted dGPU's are still a tiny share of the overall marketshare with iGPU's making up roughly 75-82% of the overall GPU market.

Spoiler: Snapshot of dGPU vs iGPU Marketshare during 2021 Q1

Spoiler: Overall GPU Marketshare 2022 Q2

Obviously, nVIDIA has no iGPU impact, but they hold a very lucrative chunk of the upper end GPU market that commands high profit margins.

 

[Kamen Rider Blade]

Well this is awkward, since I just bought a brand new EVGA card Thursday night...

Have always bought EVGA since the 2000s time line.. this sucks, I don't even know what aib to pick next. I've been an EVGA 'fangirl' too long.

DEAD/Former nVIDIA AIB's:
__- EVGA
__- BFG
__- XFX

==============================================

Remaining nVIDIA AIB's in NA (North America):
+ Exclusive:
__- nVIDIA (OGM {Original GPU Manufacturer})
__- PNY
__- Zotac

+ Dual Sourcing:
__- ASUS
__- Gigabyte
__- MSI

==============================================

Remaining AMD AIB's in NA (North America):
+ Exclusive:
__- AMD (OGM {Original GPU Manufacturer})
__- Sapphire
__- XFX
__- PowerColor
__- HIS

+ Dual Sourcing:
__- ASUS
__- Gigabyte
__- MSI
__- ASRock

Hope they work something out. If they do ever decide to go amd that'd be enough to sway me out of nvidia over to team red!

Then I hope that there are backround talks from Lisa Su to get eVGA to jump to Team Red.

That would be a HUGE win for AMD and the Radeon Technology Group.

 

[cAllen]

The last time I bought from the other guys was the ATI Radeon HD 4870 X2 and one of the cores died within 2 weeks. Add to that their drivers being atrocious, it left me with a bitter after taste. I prefer NVIDIA and so does most of the market...so while I like/d and just bought an EVGA this time, there are other distributors if/when I buy again.

 

[TheGTV]

They won't be missed by me. I bought 2 of their cards a few years ago for myself and my wife and they both didn't make it through the first year. They are cheap cards but they don't last long enough to be worth it.
They have been outdone by a lot of other companies. I've since bought PNY, gigabyte and Asus cards and they all lasted until I replaced them by choice as an upgrade and I was even able to recoup some of the cost by selling the used ones on eBay.

 

[TheGTV]

Seems like my choice to just get a 3090ti this past week and forget about waiting for 4080 availability may end up being a better decision than I figured it would be as I am out of the 40 series market now.

I got the 3090s when they came out and I'll be moving up to the 40s in a few weeks. The 3090s were just ok and it's time for something better.

 

[brandonjclark]

Fired by whom? He's the founder and CEO, it's a private company, their are no shareholders with massive stakes to push him out.

I believe they have a board of trustees, right?

They are ultimately responsible for corporate governance, but you're right, the final decision I believe remains with him.

 

[8086]

Crazy I usually always buy EVGA GPUs I wonder how they will survive without that business. I did spend almost 2k on their 3080ti so I guess they will probably have cash for a while ripping everyone off. Now that the demand is gone I guess they don't care anymore.

Time for EVGA to start selling AMD GPU's

 

[Giroro]

Not as fast as they would if EVGA continued manufacturing GPUs they are almost guaranteed to make losses on.

I don't think there's any evidence at all that EVGA is actually selling cards at a loss, but let's assume that they're somehow losing just a little money when they sell an RTX 3060 at its current price of $380, even though its built nearly exactly like cards that used to sell for $200.

Selling a card near or slightly below its break even point is slow decline. There might not be profit, but it at least covers most of the overhead. A big company can survive those losses temporarily while repositioning itself, or waiting for the market conditions to improve. But how much money does a company lose when their CEO throws a temper tantrum and walks away from at least 80% of its revenue? How much money will it cost to layoff 70-90% of the staff, close buildings, liquidate office furniture, then try to rebuild the entire company from scratch?
Where does the free cash flow come from? Who would invest in that? What customer would trust that the company will even be around long enough to stand behind their products?
The company is shutting it's doors entirely, whether they admit it to their employees or not.
I know if I worked there, I would be quitting first thing Monday morning - because most everybody will be fired by Christmas.

 

[Giroro]

If Nvidia actually wanted to cut AIB partners out of the loop, then riddle me this:

Why doesn't Nvidia make an FE version of every product in its lineup?
Why doesn't Nvidia sell FE cards directly, or at least at multiple retailers?
Why does Nvidia tend to stop selling FE versions of many cards in the middle of the generation?

 

[atomicWAR]

I have been a fan if Nvidia since I bought my first PC after I got out of the military. Packed with a Nvidia TnT 2 graphics accelerator and Pentium III CPU. My friends laughed and explained why their Voodoo cards were better even if frame rates were similar.

By the time I upgraded to the first GPU the Geforce 256...all of my friends were dropping their 3dfx Voodoos for Nvidia GPUs.

Sadly though Nvida has become increasingly greedy over the years. Screwing over AIBs and consumers a like in the process. Worse is the fact AMD can't keep up on the gpu front (drivers mostly IME). ATI always struggled but did well enough to keep Nvidia honest. This is why we need more players in the gpu space. Because as much as Nvidia has ticked me off in the last decade...there isn't a great alternative ATM and with no real challengers Nvidia has become so arrogant it now over charges for its chips making it a tough pill to swallow for AIB partners and consumers a like.

 

[Furbo]

If Nvidia actually wanted to cut AIB partners out of the loop, then riddle me this:

Why doesn't Nvidia make an FE version of every product in its lineup?
Why doesn't Nvidia sell FE cards directly, or at least at multiple retailers?
Why does Nvidia tend to stop selling FE versions of many cards in the middle of the generation?

Probably because their cards are the worst ones and if (when) people have a choice they will buy from other companies.