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

[R0H1T]

That's false equivalence ~ Nvidia sets the MSRP not the board partners! JHH could've done the noble thing & not hiked prices, this isn't oil that is traded at NYSE or FTSE

Then again the miners could've done the more noble thing & not effed the planet many times over ~ see two can play that game? The companies are hardly blameless, though a lot of the buyers(miners?) at the time should also be shamed!

 

[Haile Selassie]

Overproduction.
Reduced demand.
Bad business decisions.
Bad partnership arrangement(s).

That's all there is to it.

 

[Recus]

It's a same story as with Club3D. Stopped making NV cards, made two generations of AMD cards and stopped making graphics cards all together. Sparkle, Point of View, Diamond, HIS not making new cards too.
Why Andrew Han killed GPU division instead of stepping down as CEO? Some people just like blame others if business doesn't go as planned.

 

[Bomby569]

That's false equivalence ~ Nvidia sets the MSRP not the board partners! JHH could've done the noble thing & not hiked prices, this isn't oil that is traded at NYSE or FTSE

Then again the miners could've done the more noble thing & not effed the planet many times over ~ see two can play that game? The companies are hardly blameless, though a lot of the buyers(miners?) at the time should also be shamed!

Suggested price, that's all it is.
This MSRP bogeyman makes no sense. Like we never seen cards insanely over MSRP.

 

[R0H1T]

There's no suggestions in there, you can't sell below manufacturer set MSRP. Liquidating (excess) inventory or once in a while fire sale is fine, try selling Apple/Nvidia/Intel/AMD products consistently below MSRP & see where that lands you!

 

[Bomby569]

There's no suggestions in there, you can't sell below manufacturer set MSRP. Liquidating (excess) inventory or once in a while fire sale is fine, try selling Apple/Nvidia/Intel/AMD products consistently below MSRP & see where that lands you!

New cards have been sold below MSRP all the time, especially after the recent crypto end. And on end of life cycles like now. I bought new nvidia cards below MSRP personally, i have no idea what you are talking about.

i guess the focus there is "consistently", but why would you want to do that? lose money? dumping? race to the bottom? shady quality that comes to endanger nvidia brand?

 

[Dyatlov A]

Very well, i did not like EVGA, they were bad with me.

 

[ixi]

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.

You need to have balls to stand up for what is right. If you are a leecher then, well, you know the phrase.

 

[R0H1T]

New cards have been sold below MSRP all the time, especially after the recent crypto end

Sold by who? Are you talking about retailers or AIB partners?

They're clearing inventory. Which is what they usually do. Though admittedly MRP, as it's called here, or MSRP is a dated phenomenon.

i have no idea what you are talking about.

You clearly don't.

Slowly, over time, the relationship between EVGA and Nvidia changed from what EVGA considered a true partnership to customer–seller arrangement whereby EVGA was no longer consulted on new product announcements and briefings, not featured at events, and not informed of price changes. On September 7, Nvidia offered via Best Buy an RTX 3090 Ti for $1,099.99, undercutting EVGA and other partners that were offering their products at $1,399.99. There was no warning of the price cut, and it left the partners with little choice but to sell their inventory at below cost to meet the Nvidia price. MSI dropped their price to $1,079.99 on New Egg, and EVGA dropped theirs to $1,149.

EVGA won’t offer Nvidia next-gen series

Citing price increases and shrinking margins, EVGA quits Nvidia.

www.jonpeddie.com

Nvidia is competing against & selling to their "partners" ~ seems like an abusive relationship to me! Of course this would affect you less if your cost of operations is lower or you cut costs elsewhere, like warranty or quality components, so maybe that's why MSI/Gigabyte et al are in a better position?

 

[Bomby569]

Sold by who? Are you talking about retailers or AIB partners?

They're clearing inventory. Which is what they usually do. Though admittedly MRP, as it's called here, or MSRP is a dated phenomenon.

You clearly don't.

EVGA won’t offer Nvidia next-gen series

Citing price increases and shrinking margins, EVGA quits Nvidia.

www.jonpeddie.com

MSRP is the RETAIL price, it has nothing to do with the prices dealt between Nvidia and the AIB's the AIB's and the retailers, i'm clearly not the one in the dark here.

Best buy has some agreement to move nvidia cards, they decided to cut prices to move inventory, that's normal, it's not losing money, it's making what you can from a product that doesn't move and it's at the end of life.
Other retailers are doing the same all the time and i'm sure they aren't buying form ASUS at 1000 and selling at 800 to lose money themselves, the AIB's are also losing money and selling below MSRP, EVGA said so, they are losing money on every card sold now believing the EVGA words.

 

[Dave65]

I knew Nvida was greedy as shit. Very sad tho EVGA made the best.

 

[ZoneDymo]

I knew Nvida was greedy as shit. Very sad tho EVGA made the best.

to me its a bit sad to see fanboys now having to juggle this in their mind so adamant that their lord and savior big N cant be the bad guy, that they throw their once so respected EVGA under the bus as a bad company.

When really what more seems to be happening, as GN said, that Nvidia is trying to be more like apple which is ultimately rather anti competition and thus becomes rather anti consumer....but hey just keep giving them more money, that 85 - 10 - 5 % split on steam sure shows there is fair healthy competition going on......

 

[R-T-B]

Stop chilling for companies, or taking sides on corporate wars.

No u.

New cards have been sold below MSRP all the time, especially after the recent crypto end.

That's a liquidation event, and different. It does happen more often than he is implying though.

to me its a bit sad to see fanboys now having to juggle this in their mind so adamant that their lord and savior big N cant be the bad guy, that they throw their once so respected EVGA under the bus as a bad company.

Are you reading a different thread or something?

 

[Valantar]

Haven't followed the 8 pages (!) of discussion here, but going by the GN coverage, good on EVGA for making a mostly principled decision that must no doubt have been extremely difficult - though I also expect them to stand by their word of not laying off employees due to this.

Hopefully this is a big enough move to make Nvidia reconsider their treatment of business partners - it's been widely reported how they operate on razor-thin margins, which inevitably trickles down to consumers in the form of inferior products and engineering shortcuts. And, of course, the concept of a first-party Founders Edition is inherently anticompetitive with said partners - moving to a model more like Google's Nexus phones ("official", but in partnership with someone) would be far more fair. But my real hope is that Nvidia can realize that they can't expect 50-60% margins on chips while maintaining working partnerships with AIB makers - and that such a shift would then also carry over to AMD and the industry more broadly. Yes, chipmaking is massively expensive and requires having tons of cash on hand, but the ongoing trend of chipmakers working explicitly to raise their margins is very troubling in the mid-to-long term.

 

[oxidized]

Non-competition agreement? I can't think of anything else, if all they said is factual and they have no intention of changing their minds.

but hey just keep giving them more money, that 85 - 10 - 5 % split on steam sure shows there is fair healthy competition going on......

As long as AMD is not competitive in that regard...

 

[Bomby569]

That's a liquidation event, and different. It does happen more often than he is implying though.

But isn't the implication that they don't let them if needed, that's not true, they can. They can clearly go way over MSRP and below, it's a proven fact.

But why more often? Nvidia needs to assure there is some quality standards. MSI would be more than happy to sell you a Ventus 4090 with a 1mm heatshink and one of those server fans running at 20000 rpm if they let them.

 

[TheoneandonlyMrK]

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.

You do if Nvidia drops the retail price of a 3090 Ti to $300 below your price, a price that's at a loss for you .

And you then know, they'll do it again, and DGAF about you and yours.

On the cards since 2016 founder's education rolled out.
Oh and Nvidia's ownership of Arm would have been the same.

Nvidia wants to be Apple, and doesn't care who gets stomped out and would prefer no competition.

 

[john_]

Nvidia backstabbed it's AIBs with all those Super and Ti versions. Where AIBs had a huge price range to exploit between a limited number of models, after the Super and Ti versions they lost that. Nvidia grabbed part of those profits leaving AIBs to try to sell lower tier models at close or even higher prices than models that where one step above based on their GPU, just in an effort to improve their profit margins.

 

[Bomby569]

You do if Nvidia drops the retail price of a 3090 Ti to $300 below your price, a price that's at a loss for you .

So EVGA's plan was to keep selling 3090ti at the MSRP when demand plummeted, there's a lot of used cards in the market and the new cards are coming in weeks. That sounds like a stupid business plan to me. Of course prices had to come down to clear inventory.
They just f'ed up their inventory, to many cards in stock counting that the crypto demand would never stop.

 

[TheoneandonlyMrK]

So EVGA's plan was to keep selling 3090ti at the MSRP when demand plummeted, there's a lot of used cards in the market and the new cards are coming in weeks. That sounds like a stupid business plan to me. Of course prices had to come down to clear inventory.
They just f'ed up their inventory, to many cards in stock counting that the crypto demand would never stop.

Defender's unite.


You have no idea what they're contact was.

But a contract determined the allocation long ago.

Nvidia determined their MSRP liquidly, on the fly since day one.
Every one else just had to roll with it.

 

[Aquinus]

Just another reason why I will continue to not support nVidia. Scummy business practices, plain and simple. I don't care if they have the best hardware, they're assholes.

 

[R0H1T]

But isn't the implication that they don't let them if needed, that's not true, they can. They can clearly go way over MSRP and below, it's a proven fact.

But why more often? Nvidia needs to assure there is some quality standards. MSI would be more than happy to sell you a Ventus 4090 with a 1mm heatshink and one of those server fans running at 20000 rpm if they let them.

Wrong again ~

Nvidia has a top & bottom limit for some (high end) cards, keep doing their job though ~ free PR

 

[Bomby569]

Wrong again ~

Nvidia has a top & bottom limit for some (high end) cards, keep doing their job though ~ free PR

cards were sold by 2 and 3x MSRP and then went below MSRP, those are indisputable facts, you have to have been in a cave for the past 2 years to not know this. This is the real world, i don't do make believe.

 

[R0H1T]

Did you not understand what the heck happened? If Nvidia sets the MSRP for 3090 at ~3k the AIB partner can't sell at it 5k, now that's a good thing for the consumer but wait!

What if that board partner bought the GPU (chip) at 1.5k & couldn't sell it below 2.5k to make any profits? Just a random number so don't be pedantic.

Then Nvidia undercuts you by selling their own cards at 2k ~ win/win right? No I guess sucks to be you EVGA, or MSI/ASUS et al.

Are you pretending to not understand how this rolled or you just don't care

 

[DeathtoGnomes]

Haven't followed the 8 pages (!) of discussion here, but going by the GN coverage, good on EVGA for making a mostly principled decision that must no doubt have been extremely difficult - though I also expect them to stand by their word of not laying off employees due to this.

Hopefully this is a big enough move to make Nvidia reconsider their treatment of business partners - it's been widely reported how they operate on razor-thin margins, which inevitably trickles down to consumers in the form of inferior products and engineering shortcuts. And, of course, the concept of a first-party Founders Edition is inherently anticompetitive with said partners - moving to a model more like Google's Nexus phones ("official", but in partnership with someone) would be far more fair. But my real hope is that Nvidia can realize that they can't expect 50-60% margins on chips while maintaining working partnerships with AIB makers - and that such a shift would then also carry over to AMD and the industry more broadly. Yes, chipmaking is massively expensive and requires having tons of cash on hand, but the ongoing trend of chipmakers working explicitly to raise their margins is very troubling in the mid-to-long term.

How would you feel if this developed into an anti-trust suit? and only EVGA with balls to stand up