Graphics card manufacturer eVGA has made a name for itself in manufacturing and selling Nvidia GeForce GPUs for two decades, including some of the most attractive options on the market. But according to YouTubers at Nexus for gamers, Analyst John BedeAnd the EVGA Forum PostEVGA is officially ending its relationship with Nvidia and the cards will no longer be manufactured based on the company’s RTX 4000 GPUs.
EVGA graphics cards have exclusively used Nvidia GPUs since their founding in 1999, and according to Gamers Nexus, GeForce sales account for 80 percent of EVGA’s revenue, making this a critical and arguably threatening change for the company. But EVGA CEO Andrew Han told Gamers Nexus that the decision was about “principle” rather than financial matters — and Han complained about a lack of communication from Nvidia about new products, including information about pricing and availability.
Nvidia’s pricing strategy has apparently been another sore point for EVGA. Nvidia’s first-party Founder’s Edition cards often underprice cards offered by EVGA and other vendors, forcing them to either lower prices or lose sales as a result.
Nvidia may not be entirely wrong here – the broader dynamics of the GPU market are also hard to navigate. As Peddie also points out, even as GPU costs have risen, profit margins for board partners that make Nvidia GPUs have fallen. Modern high-end GPUs have significantly higher power, cooling, and PCI Express requirements than cards just a few years ago, making them more expensive to design and manufacture, and reports on the RTX 4000 series suggest that trend will only continue.
It also probably doesn’t help that the GPU market has fallen to the ground this year, after more than a year of limited inventory and inflated prices. Slippage of cryptocurrency values and Steer clear of Ethereum cryptocurrency from GPU mining Both have flooded the market with used GPUs, which in turn affected the demand for new GPUs. On Nvidia’s latest earnings call, CEO Jensen Huang Complained about “excess stock” of RTX 3000 series GPUs who made it Missed quarterly revenue forecast by $1.4 billion.
On the part of Nvidia, its general attitude can be summed up as “good luck long”.
“We’ve built a fantastic partnership with EVGA over the years and will continue to support them in our current generation of products,” Nvidia spokesperson Brian Del Rizzo. Tell Tom’s Hardware. We wish Andrew [Han] And our friends at EVGA all the best. “
The end of the EVGA-Nvidia relationship may also hurt Nvidia — Peddie says EVGA accounts for about 40 percent of Nvidia’s GPU market share in North America — but over the medium term, the company isn’t likely to be too stunned. Nvidia has other partners, and despite the differences in cooler design and clock speeds, GPUs in the same series tend to perform similarly regardless of which of the Nvidia partners actually made them. In other words, the RTX 3070 is an RTX 3070, and people who want one will buy one from another company if EVGA products aren’t available.
EVGA will continue to sell its other products, including power supplies, although Han told Gamers Nexus that the company doesn’t plan to return to the GPU market at all — not with AMD or Intel GPUs, and not with future GeForce product generations. Han also said that EVGA will continue to sell cards based on older GeForce GPUs, including the RTX 3000 series, until they run out of stock at the end of 2022. The company will also keep enough stock of these cards on hand to meet any warranty repairs or replacements. for currently supported cards.
Kyle Orland contributed to this report