Thursday, August 25th 2022
NVIDIA CEO Confirms RTX 40-series "Ada" Reveal in September, Launch Aimed at Not Cannibalizing "Ampere"
NVIDIA CEO Jen Hsun Huang, in his Q2 Fiscal-2023 Results call confirmed that the company's next-generation GeForce RTX 40-series graphics cards could be revealed at GTC Fall 2022, to be held next month in September. NVIDIA's launch of the RTX 40-series "Ada" will be unlike those of the previous few generations, despite retaining a "top-down" launch cycle (of launching high-end SKUs first). CEO Jen Hsun says that the first products will be "layered on top" of the current-generation "Ampere" products, so they don't cannibalize the sales of current-generation products.
"Ampere is the most popular GPU we've ever created. It is in the top 15 most popular gaming GPUs on Steam. And it remains the best GPUs in the world, and it will be very successful for some time. However, we do have exciting new next-generation coming and it's going to be layered on top of that. And so, we've taken—we've done two things. We've reduced sell-in to let channel inventory correct and we've implemented programs with our partners to price position the products in the channel in preparation for our next generation," said CEO Jen Hsun Huang. This could mean that the RTX 40-series could see a ramp-up to the various mainstream market segments, and gain volumes from them, only in 2023. The remainder of 2022 could see a high-end debut of the RTX 40-series, selling alongside attractively priced RTX 30-series cards.
Update 09:48 UTC: NVIDIA states that the CEO Keynote for GTC is scheduled for September 20.
NVIDIA stares at slow demand in the "gaming segment" (read: demand from cryptocurrency miners for gaming graphics cards); with the recent crash in the crypto-currency market, leading to miners flooding the market with used graphics cards that some consumers may be willing to pick up. This puts NVIDIA's board partners in competition with the miners at pricing; and has impact NVIDIA's gaming revenue and guidance over the past couple of quarters. From today's release, it looks like NVIDIA expects the slip to wane only by the end of the year.
Source:
NVIDIA Investor Relations
"Ampere is the most popular GPU we've ever created. It is in the top 15 most popular gaming GPUs on Steam. And it remains the best GPUs in the world, and it will be very successful for some time. However, we do have exciting new next-generation coming and it's going to be layered on top of that. And so, we've taken—we've done two things. We've reduced sell-in to let channel inventory correct and we've implemented programs with our partners to price position the products in the channel in preparation for our next generation," said CEO Jen Hsun Huang. This could mean that the RTX 40-series could see a ramp-up to the various mainstream market segments, and gain volumes from them, only in 2023. The remainder of 2022 could see a high-end debut of the RTX 40-series, selling alongside attractively priced RTX 30-series cards.
NVIDIA stares at slow demand in the "gaming segment" (read: demand from cryptocurrency miners for gaming graphics cards); with the recent crash in the crypto-currency market, leading to miners flooding the market with used graphics cards that some consumers may be willing to pick up. This puts NVIDIA's board partners in competition with the miners at pricing; and has impact NVIDIA's gaming revenue and guidance over the past couple of quarters. From today's release, it looks like NVIDIA expects the slip to wane only by the end of the year.
60 Comments on NVIDIA CEO Confirms RTX 40-series "Ada" Reveal in September, Launch Aimed at Not Cannibalizing "Ampere"
In my humble opinion PC gamers absolutely earned that sort of treatment.
Is there any other interpretation to "CEO Jen Hsun says that the first products will be "layered on top" of the current-generation "Ampere" products,"?
*where Micro Center is available
But I don't hope much about that last one. The price drop. Just look what is happening in the market today. Every tech site says and celebrates that Nvidia is lowering prices. But that is incorrect. Nvidia lowered prices only in it's ridiculously expensive cards that can't sell, out of desperation probably. Mid range cards, from $200 to $800, still sell (way) above MSRP. Also Nvidia will need to increase it's profit margin. A profit margin close to 45% is unacceptable from shareholders who are spoiled seeing massive revenue increases with profit margins higher than 63%.
The only thing it can save us is AMD. And AMD will NOT lose the chance to price as high as Nvidia. AMD is concentrating in servers where the big profit margins are. Sparing TSMC capacity for Ryzen and Radeons for the retail market, is not probably their top priority. Intel is also said to increase it's pricing by at least 15%, so, damn. Hope you have money.
Remember, GTX 1060 is still the top one on Steam.
It looks like NVidia is planning to cut all used cards from market and maintain its market share.
Remember they want to sell the 3000 series, if that was the price nobody would buy a 3000 at all.
And now I imagine there will be very little extra discounts to Ampere (RTX 30X0) lineup, since we should be glad we are finally able to buy them at MSRP, after two years!
And then there will be RTX 4070 and 4080. Faster than RTX 3090 and 3090 Ti in some cases - but more expensive too, and why not, why should we be getting more for the same money? Money that's worth less and less?
And with Nvidia market dominance AMD might just follow suit, shareholders will be pissed if they don't play the same game, market is contracting with no end to crypto bear and falling buying power / recession. And Intel won't matter for years to come.
And it might actually be even worse than that.