EVGA is reportedly so sick of working with Nvidia that it’s going to stop making graphics cards altogether
One of the most important makers of Nvidia-based graphics cards won’t be making them anymore: EVGA has decided not to produce video cards with Nvidia’s next generation of GPUs, the RTX 40-series, reports analyst Jon Peddie
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. The news is even bigger than that, though: Speaking to Gamers Nexus
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, EVGA President Andrew Han said that the California-based organization isn’t simply avoiding the up and coming age of Nvidia chips, however will “totally quit” making illustrations cards proceeding.
EVGA has been making graphics cards since it was founded in 1999, going all the way back to Nvidia’s RIVA TNT2 chips, but Han “wouldn’t even entertain the idea of working with Intel or AMD” to continue producing cards, says Gamers Nexus.
EVGA’s decision is at least partially the result of frustration over its treatment by Nvidia, according to both sources; it’s “about respect,” Gamers Nexus said. Illustrations cards are apparently 80% of EVGA’s ongoing business, however that doesn’t mean it intends to shut everything down as a result of its parted with Nvidia — it told Gamers Nexus that it doesn’t have cutbacks arranged.Illustrations cards are apparently 80% of EVGA’s ongoing business, however that doesn’t mean it intends to shut everything down as a result of its parted with Nvidia — it told Gamers Nexus that it doesn’t have cutbacks arranged.Once EVGA finishes selling off its stock of RTX 30-series cards, it will focus on its other products, which include motherboards, power supplies, and other PC components and peripherals.
The majority of EVGA’s revenue comes from sales of its Nvidia graphics cards right now, but Han told Gamers Nexus that the margin is incredibly thin, and that EVGA makes 300% more profit on power supplies. Even so, it isn’t entirely clear how EVGA will ditch the largest part of its business without laying off any employees, including staff members currently dedicated to graphics card engineering and support. “Attrition” is expected, says Gamers Nexus.
EVGA’s choice isn’t the kind of impartial business move one could anticipate: Han purportedly feels that Nvidia has been treating EVGA unjustifiably, and advised Gamers Nexus that the choice to quit working with Nvidia was “simple,” since working with Nvidia was so difficult.
According to Jon Peddie Research, “the relationship between EVGA and Nvidia changed from what EVGA considered a true partnership to [a] 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.” Peddie and Gamers Nexus also say that EVGA was frustrated by Nvidia undercutting its cards with its own Founders Editions.
EVGA’s direct communication on the topic reveals much less. In a statement posted by EVGA
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in its forums today, the company said that it will continue to support its existing graphics cards, but “will not carry the next generation graphics cards.”
“EVGA is focused on our clients and will keep on offering deals and backing on the ongoing arrangement,” the organization said. “Additionally, EVGA might want to say thank you to our extraordinary local area for the numerous long stretches of help and energy for EVGA illustrations cards.”
Nvidia’s perspective on its relationship with EVGA isn’t precisely known. The company did send PC Gamer a statement about EVGA’s departure from the GeForce scene, but it’s as diplomatic as it gets.
“We’ve had a great partnership with EVGA over the years and will continue to support them on our current generation of products,” said an Nvidia representative. “We wish Andrew [Han] and our friends at EVGA all the best.”
I think it’s safe to assume that Nvidia might have more to say if it weren’t a public company with a $328B market cap, but that’s all we’re getting for now.
The opening left by EVGA’s exit from the Nvidia designs card business will apparently be filled by different makers, like Gigabyte, ASUS, and Zotac. Nvidia as of late prodded something many refer to as “Undertaking Past,” which we accept at least for a moment that is connected with its impending GeForce RTX 40-series GPUs. We hope to hear more this month.
The 30-minute Gamers Nexus video
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on EVGA’s departure from the graphics card business includes some further speculation on the company’s motivations, and more about Han’s plans for the future—the EVGA CEO told the channel that he does not plan to retire or sell the company.
Tyler grew up in Silicon Valley alongside Apple and Microsoft, playing games like Zork and Arkanoid on the early personal computers his parents brought home. He was later captivated by Myst, SimCity, Civilization, Command & Conquer, Bushido Blade (yeah, he had Bleem!), and all the shooters they call “boomer shooters” now. In 2006, Tyler composed his most memorable expert survey of a videogame: Super Mythical beast Ball Z for the PS2. He thought it was alright. In 2011, he joined PC Gamer, and today he’s centered around the site’s news inclusion. After work, he works on boxing and adds to his 1,200 hours in Rocket Association.