News Nvidia's Gaming Revenue Plunges, Jensen Announces Price Cuts

[Admin]

Nvidia's preliminary results look bad, but back in May Jensen Huang insisted that the GPU market was “so different” to the market which was severely impacted during the previous crypto crash.

Nvidia's Gaming Revenue Plunges, Jensen Announces Price Cuts : Read more

 

[ezst036]

Nvidia's Gaming Revenue Plunges, Jensen Announces Price Cuts : Read more

Nvidia's Gaming Mining Revenue Plunges, Jensen Announces Price Cuts

There, I fixed it.

 

[InvalidError]

So different... yet so similar.

 

[Giroro]

"Gamers" don't buy $2,000 500 Watt GPUs. I would go one further and say that your stereotypical mainstream gamer can't buy a $2000 GPU. If Nvidia's executives disagree, then they're either too rich for their own good, or they spend way too much time watching their own sponsored content on YouTube.
"Gamers" are kids, teenagers, young adults, college students. This market segment usually isn't going to spend more money on entertainment than they did on their car.
Mainstream gamers buy $200 GPUs that outperform consoles, and can be slotted into their parent's old office PC with a 450 Watt Power supply. It's always been this way.
Nvidia does not currently sell a product that fits this description. Gamers can't buy a product that doesn't exist. It's not complicated.

At the end of the day, almost anybody who works hard enough to afford a high-end PC is either using it for work, building/tweaking PCs as their full time hobby, or is otherwise too busy being an adult to actually use their gaming PC to play games.

 

[elforeign]

Gee, what do you know? Gaming revenue down by 44% when GPU prices are at astronomical levels. I never would have expected people to not buy GPUs for thousands of dollars. I think 599, maybe 699 is a reasonable price for a top shelf GPU (i.e x90 (including ti model). 499/599 for x80, 399 for x70, 299 for x60

I was able to get an ASUS 3080 for 749.99 + tax and even that felt high. Hopefully these suits realize not everyone makes 5 million a year and has $1000 as pocket change.

 

[octavecode]

Every action has a consequence mister Jensen

 

[bigdragon]

Looks like Nvidia drove a lot of gamers away while milking that miner and scalper market. I expect that the projections for the 40-series are scaring some executives right now. "Line goes up!" is going to be a lot harder without the crypto and scalping crowds pumping up profits. Good to read about price drops on the 30-series, but those drops need to get a lot bigger at every performance tier.

A Playstation 5 was cheaper and easier to find than an Nvidia 30-series last year when I was looking for a gaming upgrade. The only compelling reason to upgrade right now is to improve Blender rendering and Unreal Engine's performance. Simply lowering the triangle count of created content has the same effect for no additional cost.

 

[peachpuff]

Wooohooo 🥳🥳🥳

 

[digitalgriffin]

I remember there was a class action by investors when NVIDIA didn't clear disclose how tightly their profits were coupled to the crypto mining boom from last time.

Now the cycle / trend is repeating, it will get harder and harder to deny that crypto does not adversely affect profits and needs to be noted on SEC filings.

 

[digitalgriffin]

"Gamers" don't buy $2,000 500 Watt GPUs. I would go one further and say that your stereotypical mainstream gamer can't buy a $2000 GPU. If Nvidia's executives disagree, then they're either too rich for their own good, or they spend way too much time watching their own sponsored content on YouTube.
"Gamers" are kids, teenagers, young adults, college students. This market segment usually isn't going to spend more money on entertainment than they did on their car.
Mainstream gamers buy $200 GPUs that outperform consoles, and can be slotted into their parent's old office PC with a 450 Watt Power supply. It's always been this way.
Nvidia does not currently sell a product that fits this description. Gamers can't buy a product that doesn't exist. It's not complicated.

At the end of the day, almost anybody who works hard enough to afford a high-end PC is either using it for work, building/tweaking PCs as their full time hobby, or is otherwise too busy being an adult to actually use their gaming PC to play games.

Man I better go back to college so I can be a gamer again. I aged out at by at least 28 years.

 

[-Fran-]

You can see how AMD has been a tad more cauteous:

On the one hand, AMD's gaming hardware sales boosted 32% year-over-year to $1,655 billion. But on the other hand, the operating income of the business unit increased by only 7%, to $187 million. AMD said that mixed results resulted from slowing demand for consumer graphics cards by gamers and miners following strong 2021, slowing demand for client PCs, and dropping graphics card prices.

https://www.tomshardware.com/news/amd-posts-70-percent-year-over-year-revenue-increase

I'm guessing nVidia completely banked on Crypto not crashing before Lovelace and/or their fanbois stark supporters keeping normal people buying. At the very last minute they lossen the leash on their AIBs, which it's like the perfect abuse tale, lol.

Well, I'm sure there's happy people seeing how the prices of some cards are dropping to more reasonable levels at least. Too bad the Lovelace hype is killing anyone willing to buy those xD

Regards.

 

[Giroro]

Man I better go back to college so I can be a gamer again. I aged out at by at least 28 years.

Hey, we're part of the 5% the exception to the rule 😉. Although personally I think I'm now in the category of spending more time upgrading my gaming PC, or video editing than playing games on it. The general pricing/availability over the last 2 years encouraged me to explore some new hobbies.

 

[warezme]

So crypto crashed and there is more selling off of old GPU's than are being bought and prices are still to high because vendors are used to making mega bucks and sticking it to gamers and a new generation of GPU's is on the horizon so anyone waiting for a new GPU isn't going to get a last gen card. The perfect storm for no sales. Word to Nvidia, don't screw with your gamer base.

 

[InvalidError]

a new generation of GPU's is on the horizon so anyone waiting for a new GPU isn't going to get a last gen card.

I'd happily take an RTX3050 off of Nvidia's hands for $200. Better drop those prices soon since rumors are that AMD's RX7500 will be gunning at the RTX3060 from $250.

 

[spongiemaster]

So crypto crashed and there is more selling off of old GPU's than are being bought and prices are still to high because vendors are used to making mega bucks and sticking it to gamers and a new generation of GPU's is on the horizon so anyone waiting for a new GPU isn't going to get a last gen card. The perfect storm for no sales. Word to Nvidia, don't screw with your gamer base.

Prices are still high because retailers bought the cards at inflated prices before the crypto crash and they don't want to take the hit or even lose money dropping the prices drastically. The biggest discounts are coming from AIB direct sales because they are probably getting "price adjustments" money from Nvidia allowing them to drop prices immediately.

 

[mopeygoth]

Replace the word GAMING with MINING and you have the true reason

 

[Zerk2012]

Now if only power supplies would drop in price!

I'm still using a 8 year old Seasonic G series.

 

[Tac 25]

Mainstream gamers buy $200 GPUs that outperform consoles, and can be slotted into their parent's old office PC with a 450 Watt Power supply. It's always been this way.

that's almost exactly what I did. Only difference is the "old office pc" came from a korean second hand pc store.
partnered the 2600K with a MSI 1050ti, gave it plenty of ram.. and it breezed through almost all the ps4 games I played with it. Enjoyed gaming, worth the money I paid for.
the ps4 game it could not overcome is it could not do 3840 x 2160 in-game resolution in Dead or Alive VI. Had to assemble a brand new rig with 10600k and 3050 to be able to play DOA VI at 3840 x 2160.

the 2600k + 1050ti is now a backup pc. And I still sometimes play games with it.

__

about the OP.... price cuts are good.

 

[PEnns]

I feel so bad for poor nScalpia.........NOT!
Who would have thought those honorable scalpers would stab them in their fat buttocks and kick them when they're down??

May they sink to the same bottom feeding level as their scalper friends.

 

[cryoburner]

I'd happily take an RTX3050 off of Nvidia's hands for $200. Better drop those prices soon since rumors are that AMD's RX7500 will be gunning at the RTX3060 from $250.

Yeah, most of the current "mid-range" cards are still priced kind of bad. The 3050 was supposed to be a $250 card at launch, and even that pricing didn't seem all that great. Aside from the addition of DLSS and limited RT support, it doesn't perform much better than a 1660 SUPER, a card that had a $230 MSRP almost three years ago. Yet the 3050 is currently priced in the $330+ range. Amusingly, the faster RTX 2060 can currently be found for well under $300 new though, albeit for lower-end models with mediocre cooling solutions.

The prices of 3050 cards really should drop by $100 for them to be considered a reasonable value. The same goes for the 3060 and 3060 Ti, both of which are still priced well above their MSRPs. Nvidia's shifting of model numbers to cards at higher price points in an attempt to upsell people doesn't help either. For many of those accustomed to buying "x50" cards for around $150 or so, the cards might seem overpriced even below their MSRPs. So it's no wonder people are holding off on buying them.

 

[spongiemaster]

Yeah, most of the current "mid-range" cards are still priced kind of bad. The 3050 was supposed to be a $250 card at launch, and even that pricing didn't seem all that great. Aside from the addition of DLSS and limited RT support, it doesn't perform much better than a 1660 SUPER, a card that had a $230 MSRP almost three years ago. Yet the 3050 is currently priced in the $330+ range. Amusingly, the faster RTX 2060 can currently be found for well under $300 new though, albeit for lower-end models with mediocre cooling solutions.

The prices of 3050 cards really should drop by $100 for them to be considered a reasonable value. The same goes for the 3060 and 3060 Ti, both of which are still priced well above their MSRPs. Nvidia's shifting of model numbers to cards at higher price points in an attempt to upsell people doesn't help either. For many of those accustomed to buying "x50" cards for around $150 or so, the cards might seem overpriced even below their MSRPs. So it's no wonder people are holding off on buying them.

3050 is the Turing generation of the lower end. Whether or not you think they are worthwhile, they added RTX and tensors cores to the 16xx series that adds costs without improving rasterized performance. Transistor count is almost twice as high and it has 33% more memory compared to a 1660 super. The MSRP of $250 was fine at launch, only $20 more than the 1660 Super. However, the lowest priced one on Newegg right now is $325. That is awful, and that's the cheapest one. At this point they should be below $200.

Anyone who wants a 3060Ti at $400 MSRP can get one at that price from Best Buy. They have multiple Founders Edition models in stock right now. 3060Ti, 3070, 3070Ti, and 3080Ti (Don't go anywhere near this one, you can get a 3090Ti from EVGA for less).

 

[gamr]

Anyone who wants a 3060Ti at $400 MSRP can get one at that price from Best Buy. They have multiple Founders Edition models in stock right now. 3060Ti, 3070, 3070Ti, and 3080Ti (Don't go anywhere near this one, you can get a 3090Ti from EVGA for less).

best buy knows whats up

 

[cryoburner]

3050 is the Turing generation of the lower end. Whether or not you think they are worthwhile, they added RTX and tensors cores to the 16xx series that adds costs without improving rasterized performance. Transistor count is almost twice as high and it has 33% more memory compared to a 1660 super. The MSRP of $250 was fine at launch, only $20 more than the 1660 Super. However, the lowest priced one on Newegg right now is $325. That is awful, and that's the cheapest one. At this point they should be below $200.

The 3050's graphics chip only has that many more transistors because it's a significantly cut-down 3060 with a third of the chip disabled. They could have probably left a bit more of its cores enabled to allow it to at least match the 2060. At least the slightly higher MSRP over the 1660 SUPER would have felt more justified then.

The 3060 was also a weird design, given more VRAM than most of the higher-end cards in the lineup. A 3050 with 2060-level performance for $250 and a 3060 with 8GB of VRAM for $300 would have made for more attractive products. They could have even cut the 3050's VRAM down to 6GB to match the 2060, and sold it for slightly less.

 

[spongiemaster]

It appears AMD's GPU sales aren't going any better. They were just able to hide it better because they have non GPU revenue streams, notably console APU's, which "conveniently" got put in the "gaming revenue" category with GPU's for the first time this quarter and were able to mask the huge GPU revenue drop.

AMD was down 35% from last quarter and 41% from their high 2 quarters ago. Meanwhile, Nvidia was down 44% from the previous quarter which was their peak, and 40% down from 2 quarters ago. I wouldn't exactly be laughing at Nvidia while pretending AMD is rolling along unscathed.

Also of note from this chart, AMD's console revenue is almost triple it's dGPU revenue. It sure looks like mining fueled prices shifted gamers towards consoles.

 

[Flayed]

Sales are down from their over-inflated mining craze high, so they are back to normal then?