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

[wheresmycar]

"....I think that it was just time for him to go do something else.""

I agree, its always a good time to do something else when you can't weather-in nutritious margins which help to facilitate no-sale or profit-less inventories. It seems Andrew did some basic maths... "ah, if im making 5% on top (or 10) but I end up getting stuck with a massive stock pile of expensive cards which puts me at loss, yep its a pretty good idea to shut shop". Is this Andrews fault or NVIDIA's (successful business reign - we gotto give them that) ruthlessly inquitable affiliate policy making. The way I see it, if EVGA or other AIB affiliates are free to purchase any quantity of GPUs at any given time then its the AIBs responsibility to tread safely in an unpredictable market/price crisis. If NVIDIA imposes fixed quantities as per contractual terms without a safety net, that's an easy one - NVIDIA should get the full 10-yard stick between the cheeks - simply pompously selfish IMO!

Anyway i'm just hurtling in speculation mode!

 

[HD64G]

"You know, Andrew (EVGA CEO) wanted to wind down the business, and he's wanted to do that for a couple of years. Andrew and EVGA were, are great partners and we're great partners, and I'm sad to see them leave the market. But, he's got other plans and he's been thinking about it for several years, so I guess that's about it. The market has a lot of great players and it will be served well after EVGA, but I'll always miss them, they were an important part of our history, Andrew is a great friend. I think that it was just time for him to go do something else.""

Well that's....rather damning, if you take leather jacket at his word. Even with a grain of salt, it would be lent some legitimacy given the holes in EVGA's story and reasoning. Nvidia may have played a big part in Andrew wanting to wind down EVGA, but it takes two.

Then how do the likes of asus, gigabyte, and msi manage 7-10% margins? Furthermore, what about the scalping that went on for 2 years? Last time I checked, when the 3080 was selling for $1000 onEVGA's site that was more then 5% of the original profit margin.

EVGA had the biggest share in US market because they had the best priced models that had above average quality. That tells me that they pushed their profit margins below the rest to keep that share high. They simply didn't want to keep doing that anymore since they sell PSUs and boards with much higher margins. Before they entered the PSU market they were forced to do so but weren't happy to collaborate with nVidia as the leaked discussions tell. My 5c.

 

[TheoneandonlyMrK]

Like it's even questionable.
What some have not grasped is how many companies stepped away from Nvidia, Because of Nvidia before.

 

[tussinman]

and this is why EVGA is in trouble, brand new

they were counting on the endless crypto

Nvidia is actually the ones who pitched to Asus, MSI, and Evga that they would remanufacturer RTX 2060 boards if they were interested.

It actually ended up working out for the consumer, the last 4-5 months in the US the brand new 2060s have actually been faster and cheaper than the 3050....... (what exactly is the issue ?)

You shouldn't have brand new 2060's to sell in September 2022, that's why they're losing money.

Bought all they could and couldn't to cash on crypto, and clearly have excess of crap.

I think your confusing what actually happened. These 2060s aren't old stock that they are holding, there new production that NVidia actually pitched the idea to them.

Nvidia pitched the idea because there the idiots that basically wanted these third party brands to sell what was essentially a 7 year old GTX 1070 (3050) for $300+ brand new......

 

[Valantar]

Nvidia is actually the ones who pitched to Asus, MSI, and Evga that they would remanufacturer RTX 2060 boards if they were interested.

It actually ended up working out for the consumer, the last 4-5 months in the US the brand new 2060s have actually been faster and cheaper than the 3050....... (what exactly is the issue ?)


I think your confusing what actually happened. These 2060s aren't old stock that they are holding, there new production that NVidia actually pitched the idea to them.

Nvidia pitched the idea because there the idiots that basically wanted these third party brands to sell what was essentially a 7 year old GTX 1070 (3050) for $300+ brand new......

More like Nvidia had a heap of spare RTX 2060/TU106 dice laying around (or got a sweet deal from TSMC to spin up a new production run of them on 12nm) and saw an opportunity to cash in on selling even more, at relatively high prices, of a die that long since had it's R&D costs amortized and was at this point almost pure profit. Still not a bad deal for consumers considering the alternatives, but I don't see any reason to present this as some "Nvidia steps in to save the day for consumers" type of scenario. If that was their desire, they could just have skipped the direct-to-miners sales and implemented an effective one GPU per customer queue scheme while ensuring cards sold at or near MSRP.

 

[MarsM4N]

they were counting on the endless crypto

Yep, the party is over. The music stopped playing. But they where drowning in revenue the last years, thanks to the crypto boom.
I am not shedding a tear. Let's dance on their grave & celebrate the market is back to normal. Thanks to recession there will soon be a price war battling for customers.

https://www.nextplatform.com/2021/05/26/nvidias-next-major-wave-of-ai-revenues/

Bryan has also a very "balanced" take on it.

 

[tussinman]

More like Nvidia had a heap of spare RTX 2060/TU106 dice laying around (or got a sweet deal from TSMC to spin up a new production run of them on 12nm) and saw an opportunity to cash in on selling even more, at relatively high prices, of a die that long since had it's R&D costs amortized and was at this point almost pure profit.

Exactly my point, he was making it seem like there inventory was so bad that they where literally trying to sell cards from 2019

but I don't see any reason to present this as some "Nvidia steps in to save the day for consumers" type of scenario.

No that's not what I was saying. The user I was originally quoted was basically trying to insinuate "of course Evga failed, there inventory management is so bad that they still have RTX 2060s that they haven't sold" and I was point out no those are actually 2022 shipments and that there higher-up (Nvidia) basically forced them to sell them if they wanted any hope of making profit on the sub $300 market

 

[RandallFlagg]

This is just so dumb. It's like, what is that hanging off your GPU? Oh, that's the motherboard..

 

[Ruru]

They should move to Radeon side like XFX did. EVGA Radeons would be hella cool.

 

[DeathtoGnomes]

You shouldn't have brand new 2060's to sell in September 2022, that's why they're losing money.

Actually you should, those were cards prolly set aside for RMA replacements, and now being sold outright since they dont need them anymore.

(what exactly is the issue ?)

somebody needs something to complain about or bash someone else for the hell of it. why else?

 

[lexluthermiester]

They should move to Radeon side like XFX did. EVGA Radeons would be hella cool.

Or do both Radeon AND Intel's Arc. That would be excellent!

 

[wheresmycar]

This is just so dumb. It's like, what is that hanging off your GPU? Oh, that's the motherboard..

View attachment 262538

lol, RTX 5090 first pictured here by his eminence RandallFlag

 

[MentalAcetylide]

This is just so dumb. It's like, what is that hanging off your GPU? Oh, that's the motherboard..

View attachment 262538

Yes, if you want a 4090(not sure about the sizes of the 4080s or below), you need to make sure the motherboard & hardware configuration supports it. I have an MSI TRX40 motherboard with a 3090 Kingpin + Lenovo RTX A6000. I'm pretty sure if I wanted to upgrade to a 4090, I would also have to remove the RTX A6000 just to make enough room for a single 4090. The size of these 4000-series cards is just stupid. Sometimes you have to wonder if they're not deliberately doing this nonsense just to piss people off. At least they dealt with the power spike issue(or so they said). I'll be skipping this generation completely, that's for sure. I would imagine by the time we have the 5000 series, I'll be needing a true workstation motherboard with 12 slots mounted in a case the size of a small refrigerator if I want to have two of them installed on it. Nvlink may be dead, but I can still have 2 or more cards work on the same render to finish it quicker.

 

[claes]

One real advantage with these latest generations evga had was the size of their cards, even if their coolers weren’t as effective as larger ones. I follow every case release I can but have never paid attention to GPU limits until these last two generations. Idk what cases they’ll fit in (apparently define without HDD bays), but they certainly won’t fit in my FT02.

Double post, just watched the GN AIB preview, and just checked the define 7 compact and it barely fits the ASUS TUF 4090…. What are GPU manufacturers doing? What are nvidia’s alleged design limits when we’re already at 3+ slots and >12”/320mm and the ASUS Noctua design demonstrated you could do a lot better just by using better fans? SFF had shown it’s been a worthy design change for years now… why hasn’t it been implemented?

 

[Fasola]

GN followup:

 

[AleXXX666]

do you not understand how taxes work ?

yes lol. but same as with Apple products, there is huge margin put, not taxes

 

[Valantar]

yes lol. but same as with Apple products, there is huge margin put, not taxes

You seem to have a very, very simplistic view of the value chain of design, production, distribution and sales, and how taxes and fees play into this.

 

[SOAREVERSOR]

yes lol. but same as with Apple products, there is huge margin put, not taxes

I'm going to assume you aren't using "margin put" as the investing term which is what it means and you're just saying apple has high margins. They don't. Most PC and electronics makes don't either. There's two ways they stay valid. The first is landing tons of corporate contracts where the real money is in support contracts on systems most people don't see. So a company like Dell or HP or lenovo doesn't stay floating off it's hardware, that's stupidly small margins. What happens is if you are a Dell shop for example you eat support contracts with them on the laptops, techs, service, certfications, and support.

All of this works this way. The thing about apple is it's a phone company, but it's cleaning house not via the phone but the app store. On the corporate side they aren't making money off the macs but they make a killing off support and software and other items. Gaming works this is way as well for everyone not Nintendo. Microsoft and Sony sell at a loss for a long time, though eventually they make a profit so little what matters is that it's not a loss. The truth is the clean up on the games they sell as they take a portion.

Hardware beyond selling chips is tiny margins. Even that is also only viable at scale.

 

[AleXXX666]

I'm going to assume you aren't using "margin put" as the investing term which is what it means and you're just saying apple has high margins. They don't. Most PC and electronics makes don't either. There's two ways they stay valid. The first is landing tons of corporate contracts where the real money is in support contracts on systems most people don't see. So a company like Dell or HP or lenovo doesn't stay floating off it's hardware, that's stupidly small margins. What happens is if you are a Dell shop for example you eat support contracts with them on the laptops, techs, service, certfications, and support.

All of this works this way. The thing about apple is it's a phone company, but it's cleaning house not via the phone but the app store. On the corporate side they aren't making money off the macs but they make a killing off support and software and other items. Gaming works this is way as well for everyone not Nintendo. Microsoft and Sony sell at a loss for a long time, though eventually they make a profit so little what matters is that it's not a loss. The truth is the clean up on the games they sell as they take a portion.

Hardware beyond selling chips is tiny margins. Even that is also only viable at scale.

i meant retailers at most, not the manufacturers.

 

[Valantar]

i meant retailers at most, not the manufacturers.

Having worked in electronics retail for about a decade total, I can tell you for a fact that Apple products are some of the lowest margin products you'll find in any electronics store (though game consoles are typically worse). Apple also tends to control distributor margins to a higher extent than other brands.

 

[AleXXX666]

Having worked in electronics retail for about a decade total, I can tell you for a fact that Apple products are some of the lowest margin products you'll find in any electronics store (though game consoles are typically worse). Apple also tends to control distributor margins to a higher extent than other brands.

still, $999 in US magically turns into like EUR1299 in EU lmfao

 

[Valantar]

still, $999 in US magically turns into like EUR1299 in EU lmfao

... Yes, because most EU countries have 19-25% VAT (us MSRPs are without any form of tax), and the US is the largest single market for electronics (outside of China), meaning the economies of scale of a single language single market are much more present than anywhere in the EU. This really isn't complicated, and requires absolutely zero conspiratorial thinking to make add up. This is literally what I meant when I said it seems you have a very simplistic view of these systems.

 

[AleXXX666]

... Yes, because most EU countries have 19-25% VAT (us MSRPs are without any form of tax), and the US is the largest single market for electronics (outside of China), meaning the economies of scale of a single language single market are much more present than anywhere in the EU. This really isn't complicated, and requires absolutely zero conspiratorial thinking to make add up. This is literally what I meant when I said it seems you have a very simplistic view of these systems.

i don't understand posting prices before taxes. it's like telling you salary in gross you will be like wow then you see what you get to your hands and understand your great illusions were BS lol

 

[cvaldes]

i don't understand posting prices before taxes. it's like telling you salary in gross you will be like wow then you see what you get to your hands and understand your great illusions were BS lol

Tax rates vary depending on jurisdiction.

Using a US example, California has a statewide sales tax rate of 7.25% but individual counties (sometimes cities) often have their own sales tax so the rate in San Francisco (City and County), South San Francisco (San Mateo County), and Cupertino (Santa Clara County) might all be different (in fact, they are).

In the same way, EU member nations have their own tax rates.

A company like NVIDIA doesn't know where Reader X lives and where he/she will be buying Product A. And tax rates change.

Same thing with income taxes. Whatever exemptions and deductions you claim are probably different than everyone else's. Married people have different tax rates than single people. Some states have their own income tax (like California) while others do not (like neighboring Oregon).

I agree with Valantar that you have a very simplistic view of these systems.

 

[lexluthermiester]

i don't understand posting prices before taxes.

Because sales taxes in the US are handled on a region by region basis. Some places in the US don't have sales tax at all. It would be INSANELY difficult to try posting prices including sales tax here. Does that make sense?

it's like telling you salary in gross you will be like wow then you see what you get to your hands and understand your great illusions were BS lol

It's not illusion, it's practicality. Everyone who lives in a region were sales taxes are collected, knows or has easy access to what those tax rates are and can easily calculate or estimate. For example if the price before taxes is $499 and there is a 6% tax the calculation would go something like 499 X 1.06 = 528.94. It's not magic or a conspiracy and it's not difficult for a person to do.