EVGA Announces Cancelation of NVIDIA Next-gen Graphics Cards Plans, Officially Terminates NVIDIA Partnership

[Bomby569]

Kingpin would have nothing to do with a partnership with Intel

 

[qubit]

Seismic.

 

[cvaldes]

Undoubtedly EVGA considered partnering with AMD and/or Intel at some point, probably held meetings, maybe even got some engineering sample chips to play with. But in the end, they decided to exit the GPU business completely, a move that is decidedly pessimistic about the discrete graphics card industry as a whole.

Perhaps they forecasted a future of ever-dwindling gross margins based on what their recent returns have been in the past five or so years.

For sure EVGA's senior management team has thought about this long and hard; Andrew Han and Jensen Huang must have conversed numerous times over recent years about how things were going.

 

[Ravenas]

EVGA should be allowed anonymity, similar to ASUS or Gigabyte, in regard to chipsets.

 

[PapaTaipei]

Wow, was not expecting that one. They were the only ones with 10 years warranty on GPU...

 

[RandallFlagg]

Undoubtedly EVGA also considered partnering with AMD and/or Intel at some point, probably held meetings, maybe even got some engineering sample chips to play with. But in the end, they decided to exit the GPU business completely, a move that is decidedly pessimistic about the discrete graphics card industry as a whole.

Perhaps they forecasted a future of ever-dwindling gross margins based on what their recent returns have been in the past five or so years.

For sure EVGA's senior management team has thought about this long and hard; Andrew Han and Jensen Huang must have conversed numerous times over recent years about how things were going.

A good observation. dGPUs as a mass market item may be on their way out.

Not yet ofc, but in 6-12 months we'll have a 'tiled' tGPU in Meteor Lake and AMD is already adding iGPU to its desktop chips with Zen 4. DDR5 will also help alleviate memory bandwidth issues that plague current iGPUs, especially as DDR5 gets faster over the next year or two.

The long predicted end for the discrete GPU market may be near.

 

[Hxx]

Did Nvidia force them to sell to miners.

Does a vendor know /care who they’re selling to? Money is money no matter from who and all vendors can do is place some hurdles but miners could easily overcome those

 

[Berfs1]

if Nvidia are the bad guys, why no partnership with AMD? Surely that would be seen as a big win for AMD and their products to lure EVGA away from the big bad wolf.

Possibly because they don't want to go back and forth between the two once AMD does a fuck up (if it happens).

A good observation. dGPUs as a mass market item may be on their way out.

Not yet ofc, but in 6-12 months we'll have a 'tiled' tGPU in Meteor Lake and AMD is already adding iGPU to its desktop chips with Zen 4. DDR5 will also help alleviate memory bandwidth issues that plague current iGPUs, especially as DDR5 gets faster over the next year or two.

The long predicted end for the discrete GPU market may be near.

I doubt it will ever end. There are always some scenarios that require discrete GPUs, and with software always advancing, we won't reach a time where iGPU is powerful enough to run the latest software. iGPUs are meant to be rather basic in performance but have all the capabilities such as encoders, decoders, etc.

 

[mama]

Sounds like EVGA looked at the current situation of Nvidia undercutting AiBs with their FE cards, especially during the GPU "shortages".

Also, if the margins are slim and EVGA had made some samples of the 4090, but found the cost to be too much compared to making an actual profit without harming the company and then taking into consideration how Nvidia has been handling the 3000 series, it may have very well looked like a complete loss to EVGA to try and go through another generation with them. If Nvidia is sitting on stock (of the 3000 series) and trying to keep prices up enough on the 3000 series so they can price up the 4000 series (as rumors suggest) coupled with companies having 4000 series sitting in stock, but unable to sell them, that's just money tied up in multiple locations that eats into the coffers.

Lots of "what if" scenarios here and without being on the inside and actually knowing it all, we can only speculate.....

Maybe EVGA made a wise choice to cut ties and walk away? I guess only time will tell.

I agree. There is likely a combination of old and new reasons why the decision was made. I think it possible the extreme cooling the new 40 series needs (only speculation of course as it hasn't released) may have played a role.

 

[outpt]

this sucks big time. in 20 years i have had only 1 card that was not from EVGA and that was a 5600xt from XFX. well i guess when my 3080 from EVGA kicks the can i will look else where. i have never had a EVGA give it up.

 

[Hxx]

This smells truly fishy. If you as a company make up 40% of North American GPU sales, and a whopping 80% of your overall revenue comes from GPU sales...you don't just walk away from that to focus on the sales of motherboards, PSUs and peripherals.

Gross profit and net income are two very different measures of your financial power . Evga said fuck it why work 100 times harder and compete with even the suppliers own cards (FEs) when they can refocus on higher margins and less sales volume but the volume will grow as they repurpose their resources . The only folks suffering here would be the additional specialized employees who may no longer be needed and eventually coached out of the company

Also not sure how obvious this is but companies restructure all the time by discontinuing operations or acquisitions. It’s just polarizing in this case because gpus are a huge chunk of their business that’s all

 

[Space Lynx]

The long predicted end for the discrete GPU market may be near.

Markets were way smaller in the 1990's and early 2000's and we still had a new gpu every couple years. Sure, they may not make as many in the future, but the PC Gamer market will still run on supply and demand.

 

[samum]

Undoubtedly EVGA considered partnering with AMD and/or Intel at some point, probably held meetings, maybe even got some engineering sample chips to play with. But in the end, they decided to exit the GPU business completely, a move that is decidedly pessimistic about the discrete graphics card industry as a whole.

Perhaps they forecasted a future of ever-dwindling gross margins based on what their recent returns have been in the past five or so years.

For sure EVGA's senior management team has thought about this long and hard; Andrew Han and Jensen Huang must have conversed numerous times over recent years about how things were going.

I wouldn't be surprised if the Nvidia exclusivity agreement prevented EVGA from even talking to another chipmaker about discreet GPUs.

 

[nguyen]

Sounds like a "I have had enough" reaction from EVGA's top managements when they have been loyal to Nvidia for 20 years, only to be treated as a useless middleman that Nvidia want to cut in the near future.

Anyways the GPU business is shrinking considerably for the forseeable future, it's not a bad decision to cash out now...

 

[cvaldes]

I doubt it will ever end. There are always some scenarios that require discrete GPUs, and with software always advancing, we won't reach a time where iGPU is powerful enough to run the latest software. iGPUs are meant to be rather basic in performance but have all the capabilities such as encoders, decoders, etc.

Oh, the discrete graphics card market isn't going to vanish. There will always be specialized usage cases for them including content creation, technical computing, game development, etc. And yeah, sure, the handful of loyal PC gaming enthusiasts.

However in five years, will people's phones be powerful enough to play 4K games and cast them onto TV sets? We are already seeing mainstream video game console hardware (Xbox X and PS5) run at 4K. In the end content is king: gameplay beats the number of polygons on your screen.

There are other developments like cloud gaming and streaming (gaming as a spectator sport) that are already changing the way people see games.

The video game world is constantly evolving and the old paradigm of a powerful GPU in a desktop PC is getting more and more antiquated every day. We already know that mobile gaming generates far more revenue than console and PC gaming.

 

[Sybaris_Caesar]

What a news to wake up to. EVGA in red boxes, bring it on. I know so many people who buy EVGA, not Nvidia because of their stellar warranty.

 

[PapaTaipei]

I don't get why NVIDIA/ AMD doesn't directly sell cards. Just like Intel. AIB is pure parasitic nonsense.

 

[neatfeatguy]

I'm almost tempted to pickup an EVGA card just because it'll be the last time they're around and considering the fact is, I don't have one from this generation anymore. Just an ASUS 3080 and also an ASUS 3060 Ti. But, then you have a card from EVGA that you're putting your trust in them to be able to uphold the 3 year warranty (wonder if they'll still offer extended warranties....?) should something happen to that GPU.

EVGA and Zotac were my main go to companies. I got ASUS cards because that's just what was available when the time came. Guess it'll be Zotac and then ASUS from here on out for me.

 

[MarsM4N]

My program for the next 3 hrs. Do not disturb. THX

 

[lexluthermiester]

Holy meadow muffins Batman! What the actual hell EVGA? You make the best cards in the industry! What the hell are we going to do now?

 

[SLObinger]

If there are any good players in this industry EVGA is among them. Got an EVGA 3090 Ti three days ago. Today it has more sentimental vs monetary value I think.

 

[phanbuey]

it looks like nvidia is adopting the very same model 3dfx had when they beat them through using board partners...

I think it's quite a stupid move.

 

[Space Lynx]

Holy meadow muffins Batman! What the actual hell EVGA? You make the best cards in the industry! What the hell are we going to do now?

PC Gamer article said it was a matter of "being respected" Looks like Nvidia just being a dick to EVGA from what I can gather from that PC Gamer article.

EVGA is reportedly so sick of working with Nvidia that it's going to stop making graphics cards altogether

The decision is said to be about "respect."

www.pcgamer.com

 

[natr0n]

I'm guessing they were paying that kingpin guy too much.

Really sucks I have a 1660ti and 3070ti from them. Very good quality products.

 

[thesmokingman]

This is a huge blow to NV, on top of the Ether build. It must have been THAT bad for EVGA to just walk away, insane.