NVIDIA Posts Net Loss of $200 Million

[Hayder_Master]

WHY NVIDIA LOSE
1- ATI 4xxx series
the ATI 4xxx series it was surprise compare with 3xxx series , powerful GPU's with high performance with highest GPU technology in cheap price which is push NVIDIA for big drop in prices no one expect it before .
and for this point i expect more loss for NVIDIA
2- INTEL chipset
more than 80% from people use inte chipset and we see the INTEL creative with X38 - X48 - P45 which is most powerful and extreme performance chipset's , so this chipset's only support crossfire which is another reason to make people chose ATI.
i expect this lose gone cuz new X58 chipset support SLI too
3- NVIDIA buy AGIA physics
worst and dump move from NVIDIA for more sells , they pay much to buy this and still pay for games company's to make games support NVIDIA physics and the got shame for this.
i expect more and more lose for NVIDIA in this point cuz ATI become develop HAVOOK which this one better technology for AGIA technology in physics

 

[Mussels]

I beleive most of this loss would relate to buying Ageia PhysX, the fiasco with faulty GPU's, and intel pulling their i7 chipset licence (Nv would have had work in progress here, it'd be silly to assume they didnt at least have prototypes)

 

[_jM]

well, no sh!t this would happen with ATi coming out with the 4890 this spring....

 

[MrMilli]

I beleive most of this loss would relate to buying Ageia PhysX, the fiasco with faulty GPU's, and intel pulling their i7 chipset licence (Nv would have had work in progress here, it'd be silly to assume they didnt at least have prototypes)

While Ageia did cost them a lot of money (rumured around $150 million), this purchase was done in februari 2008. It doesn't have anything to do with this quarters results.
The cost of the faulty gpu's was last quarter or the quarter before it. So again not this quarter.
And Intel i7 accounts for less than 1% of the sales so that can't hurt them (yet!).

I believe the current loss is directly related to the fact that nVidia doesn't make enough money on their chips. Their gross margin is down the sewer.
The mammoth sized GT200 chip is being sold way to cheap considering it's size and it's PCB is much more expensive then RV7xx's PCB.
AMD nVidia chipsets are being sold cheaper than their AMD counterparts and their Intel chipset are not really taking off in sales.

It's a common misunderstanding that ATI & nVidia make most of their money (i mean profit) in the low-end. I clearly remember a graph from both companies that showed that the most money is actually made in the high-end where profit margins are (normally) through the roof. Problem for nVidia now is that their high-end doesn't have a high enough margin to compensate the miniscule profit margin they make in the low-end.

 

[PCpraiser100]

So that explains why my friend is pissed at Nvidia lol.

 

[WhiteLotus]

I am pretty sure that, like most companies of late, they have artificially increased their costs (stuck it all in R&D would be a good example) and are reporting a loss just to see if the government will give them a nice helpful "Bailout".

 

[SpatialAnomaly]

Most of the people posting here are pretty ignorant:

http://www.gamasutra.com/php-bin/news_index.php?story=23315

The economy is in the toilet. Nobody is making record profits right now. Nvidia losing money in the first quarter means precisely nothing.

:shadedshu

 

[ShogoXT]

I will say I want ATI to hold its own against the big people, but I dont really want Nvidia to die for competition purposes.

 

[Mussels]

Most of the people posting here are pretty ignorant:

http://www.gamasutra.com/php-bin/news_index.php?story=23315

The economy is in the toilet. Nobody is making record profits right now. Nvidia losing money in the first quarter means precisely nothing.

:shadedshu

thats a pretty big assumption to assume everyone in the world keeps up to date with the american economy. This is a global forum, not everyone bothers with the latest american news (unless its tech related)

 

[a_ump]

lmao nvidia is far from dying, just cause their profits are down doesn't mean much at all, ATI/AMD was in much more financial trouble before the HD 4XXX series were released. Yet even with low yields on nvidia's monolithic gpus it's still rumored that the GT300 will be huge as well, as big as the GT200 was. I don't get it lol they just think bigger instead of smarter

 

[kenkickr]

While Ageia did cost them a lot of money (rumured around $150 million), this purchase was done in februari 2008. It doesn't have anything to do with this quarters results.
The cost of the faulty gpu's was last quarter or the quarter before it. So again not this quarter.
And Intel i7 accounts for less than 1% of the sales so that can't hurt them (yet!).

I believe the current loss is directly related to the fact that nVidia doesn't make enough money on their chips. Their gross margin is down the sewer.
The mammoth sized GT200 chip is being sold way to cheap considering it's size and it's PCB is much more expensive then RV7xx's PCB.
AMD nVidia chipsets are being sold cheaper than their AMD counterparts and their Intel chipset are not really taking off in sales.

It's a common misunderstanding that ATI & nVidia make most of their money (i mean profit) in the low-end. I clearly remember a graph from both companies that showed that the most money is actually made in the high-end where profit margins are (normally) through the roof. Problem for nVidia now is that their high-end doesn't have a high enough margin to compensate the miniscule profit margin they make in the low-end.

Im pretty sure they didn't put the full amount of cash on the table but went through a loaner, gave them a down payment, and are paying off the buyout(That's the way it works in the sports industry when new owners come in so I wouldn't think of it any differently in any other market)

 

[silkstone]

i very much doubt that. Nvidia doesn't have to beg their customers as much as ATI because they have "blind followers" in form of unaware customers who frankly don't care what GPU they have.

Jee, another Fanboy troll
There's nothing wrong with ATI chips they are very competitive and often beat nVidia price/performance wise.

It's a common misunderstanding that ATI & nVidia make most of their money (i mean profit) in the low-end. I clearly remember a graph from both companies that showed that the most money is actually made in the high-end where profit margins are (normally) through the roof. Problem for nVidia now is that their high-end doesn't have a high enough margin to compensate the miniscule profit margin they make in the low-end.

More or less correct. While they don't make a huge profit off the higher end chipsets they make enough money to pay for all the R&D costs they put into it, eventually these chips get phased/recycled into the mid/low-end market where it begins to actually make serious money
(as oppose to offsetting the R&D costs) All of the crap in your computer is made of copper and sand, people, neither of which are really expensive. They own all the factories and equipment to manufacture the boards and a lot of the process is automated thus reducing the manpower costs.

 

[SpatialAnomaly]

thats a pretty big assumption to assume everyone in the world keeps up to date with the american economy. This is a global forum, not everyone bothers with the latest american news (unless its tech related)

The people in this thread who assumed that Nvidia was doomed, or that this is the result of ATI's 'new products' are the ignorant ones I was referring to.

It's pretty asinine to say stuff like that when ATI is not doing any better. That's the point of my post, which you clearly missed.

Quite frankly, this entire discussion has nothing to do with the 'american' economy. The problem is, as you said, global, and nothing in my post indicated anything to the contrary. In fact, I never once even mentioned America in my original post. But thanks for coming out.

 

[beck24]

Nvidia's latest quarter $664 million in revenue. Ati's latest quarter $222 million.
Wake up people.

 

[MrMilli]

Nvidia's latest quarter $664 million in revenue. Ati's latest quarter $222 million.
Wake up people.

$664: includes gpu's, chipsets, tesla, goforce, ... and whatnot
$222: only gpu's (not even Firestream)

 

[ShadowFold]

Jee, another Fanboy troll

I've been browsing forums since the NV6000 vs ATI X800 and I gotta say, there really are a lot of people who think ATi hides under there beds and will murder them unless they have an nvidia card.

 

[beck24]

$664: includes gpu's, chipsets, tesla, goforce, ... and whatnot
$222: only gpu's (not even Firestream)

Actually it includes all the business that ATI brought to the merger as that was not finalized for accounting purposes until after the quarter was reported.

 

[hat]

Hey, I dropped $5, anyone seen it?

 

[h3llb3nd4]

I'm sorry, I stole it

 

[Mussels]

I'm sorry, I stole it

Yes. he stole it.

(thanks for taking the rap for me, i needed that money to see the new star trek movie)

 

[h3llb3nd4]

I took $5 from Ket also...Do you want it mussels?

 

[Mussels]

I took $5 from Ket also...Do you want it mussels?

nah i already stole his wallet.


we should get this back on topic

 

[Tatty_Two]

I hope you do know that ATI was in the lead up until Q3 2006 ever since they launched R300. Before that nVidia was and before Geforce ATI was again. These two companies have flipped positions more than once and it will happed again for sure (it would be really naive to think otherwise).

http://www.xbitlabs.com/images/news/2007-10/jpr_gfx_mkt_q3_2007_trends.png

http://www.xbitlabs.com/news/video/display/20050426103105.html

http://www.xbitlabs.com/news/video/display/20050127130508.html

Ahhhh right, now your talking market share and NOT profit/loss. The 2 dont necessarily sit hand in hand I am afraid, for example manufacturers more and more in this highly competative market sell at a loss (NVidia especially in the last 12 months), often whilst maintaining market share, it's sometimes how long they can go making that loss that determines the actual strength of the company, especially in the current worldwide economic crisis.
Funny thing is...... ATi will probably post a loss too, although thats just a guess.

 

[Tatty_Two]

$664: includes gpu's, chipsets, tesla, goforce, ... and whatnot
$222: only gpu's (not even Firestream)

So are you assuming that if ATi/AMD included their other operations the picture would be different?

 

[a_ump]

i'd have to agree with a loss, but definitely an increase in market share as they've done a much better job this gen than the past 2. i see a lot more people on TPU with the HD 4870/90 in their specs than i see GTX 260/75. I also see more people recommending the HD 4890 on here over the GTX 275.