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EVGA Exiting GPU Market, Citing Abusive Treatment by NVIDIA as Reason


Mr. Fox
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Sad news. I have purchased EXCLUSIVELY the EVGA brand for video cards since I stopped purchasing AMD-powered GPUs more than a decade ago. They are the only company with a decent warranty service and the only brand that I believe consistently produced good quality, reliable video cards. Sad days ahead.

 

 

 

Edited by Mr. Fox
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Damn that's crazy. I read that GeForce cards are 80% of their revenue. Nvidia much have REALLY pissed them off. 

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Absolutely nuts.

 

I respect their reasons for ending the partnership, but a lot of things they said don't make sense.

 

  • No new partnership with AMD or Intel, so no more GPUs period.
  • No layoffs? How is that going to be sustainable? A lot of people would end up with no more work to do, but they would still be paid? It seems like they just expect people to quit.
  • It doesn't seem like there is any plan to expand to other product areas, so they are just going to take a massive loss in revenue without a long-term plan to recover it in other sectors.
  • I imagine a lot of current customers will be wary about buying any of their other products. They may feel that the service and product quality will be compromised. Even if this sentiment is unfounded, it's an understandable concern.

 

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Not withstanding recessionary fears affecting revenue forecasts in general, I wonder if EVGA :

 

a.) got stuck with a whole pile of RTX 3K dies

b.) also wants to offer AMD XT/X 7K GPUs (or even Intel Arc?), unless that is also nixed for good...

 

 

 

Edited by J7SC_Orion

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29 minutes ago, J7SC_Orion said:

Not withstanding recessionary fears affecting revenue forecasts in general, I wonder if EVGA :

 

a.) got stuck with a whole pile of RTX 3K dies

b.) also wants to offer AMD XT/X 7K GPUs (or even Intel Arc?), unless that is also nixed for good...

 

 

 

So far they have said they don't want to do Intel or AMD cards either (i.e. no graphics cards, period). Seems silly to me as now would be the prime time for such a partnership.

 

They really should have learned from the last crypto surges. I agree, probably got burnt on a whole lot of sitting RTX 30-series cards rotting on shelves, or selling at a loss.

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55 minutes ago, Sir Beregond said:

So far they have said they don't want to do Intel or AMD cards either (i.e. no graphics cards, period). Seems silly to me as now would be the prime time for such a partnership.

 

They really should have learned from the last crypto surges. I agree, probably got burnt on a whole lot of sitting RTX 30-series cards rotting on shelves, or selling at a loss.

 

...according to the few reports I have seen /read so far on this, graphic cards (read NVidia-GPUs) made up about 80% of EVGA's overall revenue; tough to just completely vacate related revenue streams now - is EVGA perhaps doing far worse than anyone assumed ?

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1 hour ago, J7SC_Orion said:

 

...according to the few reports I have seen /read so far on this, graphic cards (read NVidia-GPUs) made up about 80% of EVGA's overall revenue; tough to just completely vacate related revenue streams now - is EVGA perhaps doing far worse than anyone assumed ?

I think the opposite may be true. They make like a 300% profit margin on PSU sales and like 2 or 3% on GPUs. I bet they are going to focus on what makes them money and walk away from what does not. I suspect they have decided that it's not worth burning any calories on GPUs any more, and certainly not worth taking a shot in the posterior orifice with NVIDIA treating AIB "partners" like crap. They've expressed no desire to work with AMD on GPUs, probably because AMD treats AIBs in a similar way and profit margins are too small to bother with regardless of whether the GPU is from the red or green team.

 

Edited by Mr. Fox
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Revolution has a side benefit that it usually grows stronger once someone with the gonads has the gumption to draw first blood.

Go, EVGA, GO!!! Hopefully, other AIB partners will follow in their footsteps. Jolly Green Giant needs to learn the Golden Rule.

05yRZbr.png

Bring on the revolution!

 

Edited by Mr. Fox
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3 hours ago, thermotto said:

I respect their reasons for ending the partnership, but a lot of things they said don't make sense.

 

  • No new partnership with AMD or Intel, so no more GPUs period.
  • No layoffs? How is that going to be sustainable? A lot of people would end up with no more work to do, but they would still be paid? It seems like they just expect people to quit.

 

I'm assuming they want/expect NVIDIA to try and negotiate to get them to stay. If they announce plans to swap to AMD/Intel out the gate then they lose their "golden AIB partner" bargaining chip. 

 

the no layoffs comment is either optimism for ^ or it was just a flat-out lie

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...if this is bargaining (and it very well might have started out that way), it feels like it seriously broke down between two entrenched positions - Gamers Nexus reported that senior NVidia managers were advised in April. Either way, EVGA would also take some permanent damage in terms of GPU customer trust if it subsequently reverses in the near future. This current 'news' however seems to miss some major pieces of the puzzle, not least as EVGA apparently produced several engineering sample models of the RTX 4K line. Anyway, it is a corporate soap opera mess right now.

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Regardless of what's really behind all this as far as computer bits and pieces go, what with everything that's going on everywhere, I'm remaining in a wait and see mode. I might end up being pleasantly surprised and/or mildly disappointed, accompanied by I told you so's and I didn't know that's lurk behind whatever ends up becoming my elephant in any of the rooms that I might flock to. 

 

Spoiler

first-two-lemmings.jpeg.999d8be854a089a0807f151877abcc94.jpeg

 

nvidia-weforce-v3.jpg.b9f965bd71aa4e2fa646d69e7a731e18.jpg

 

 

Edited by iamjanco
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2 hours ago, Avacado said:

Well, at least the value on my EVGA GPU stockpile went up over night....

 

...same here; my older EVGA classies may become classics...

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This could be a start of something interesting and good for everyone concerned if other AIB partners decided they were not going to put up with any more crap from NVIDIA (or AMD for that matter) and joined EVGA in a walkaway from mickey-mouse profit margins and Nazi mandates. Change is always hard, but after the pain subsides it feels better. I honestly don't know why any of them put up with it. They're puppets, not partners. Without them, NVIDIA and AMD would fold. The AIB partners should ban together and flex their muscles, and organize a mutiny. 
 

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Yeah idk about this, I'm getting a funny BFG type feeling here.  Remember, back in the day BFG sold PSU's and other things too.  I get the feeling EVGA is doing worse than we think they are and they might be closing shop for good soon.  If they had already told NVidia this back in April, then they already know and they clearly don't care.  So this isn't a renegotiation tactic.  Yeah, their PSU sales make more of a percentage, but the GPU's make more flat out money.  3% on $3000 3090's > 30% on $50 PSU's.  Yes, I know those are extreme examples, but you get the idea.

From what I understand 80% or so of their income was from GPU sales (per comments and forum topics).  This might just be the end of them.  😢

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Don't recall exactly when they started dropping the pricing on 30x0 series cards, but some might find the following excerpt interesting, from an article that was published during the latter part of last month (August 24/25):

 

Quote

 

Nvidia also booked a $1.22 billion inventory charge for data-center and gaming products, given its revised expectations. The company said about $570 million of the charge is for inventory on hand and about $650 million of it is for inventory purchase obligations “in excess of our current demand projections.”

 

“We reduced selling to let channel inventory correct and we’ve implemented programs with our partners to position the products in the channel in preparation for our next generation,” Huang told analysts on the call. “All of this, we anticipate we’re working towards a path to being in good shape going into next year. So that’s what our game plan is.”

 

 

Source: MarketWatch - Nvidia sales forecast falls about $1 billion short of expectations, stock falls

 

Kinda got me thinking (speculating) that--knowing EVGA was typically later to market on new releases than other AIBs--they might have been counting somewhat on the income they might have gotten had they been able to move most of their inventory at those higher prices.  

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...this is quite telling (from Gamers Nexus / YT) 

 

evgaNVu.thumb.jpg.53c42bdc3653ce8238d86af8fe2cd2d9.jpg

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7 hours ago, J7SC_Orion said:

...this is quite telling (from Gamers Nexus / YT) 

 

evgaNVu.thumb.jpg.53c42bdc3653ce8238d86af8fe2cd2d9.jpg

Yea. I wonder if EVGA actually gave a loss figure or if it's just speculation from Steve. 

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I think EVGA are living in a pipedream if they believe they can survive solely on the products they have outside of the GPU space. 

 

Further to this, not letting anyone go. Sure they can likely sustain that for a short while, but no way indefinitely. They are 100% hoping people will simply move on, meanwhile EVGA gets to save face. 

 

I understand Nvidia are a PITA to work with, fine. However why not work with AMD or Intel? To say no to the entire GPU market is cutting your own throat in my mind. 

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22 hours ago, ENTERPRISE said:

I think EVGA are living in a pipedream if they believe they can survive solely on the products they have outside of the GPU space. 

 

Further to this, not letting anyone go. Sure they can likely sustain that for a short while, but no way indefinitely. They are 100% hoping people will simply move on, meanwhile EVGA gets to save face. 

 

I understand Nvidia are a PITA to work with, fine. However why not work with AMD or Intel? To say no to the entire GPU market is cutting your own throat in my mind. 

I thought so too. Saw some say maybe it is a negotiation move with Nvidia, but given Nvidia was informed in April, this seems unlikely. I suspect AMD might be similar, but hey why not be the hero Intel needs to get a 3rd competitor on the market?

 

Outside of that, I don't see why they can't pivot into their other markets, but I would expect there to be growing pains and downsizing initially to get there. Power supplies are clearly a solid segment of their business that they can grow. They could really work to expand on other peripherals and cases. I heard they were not continuing with motherboards, is that true? I was going to say they could expand there, or branch into memory. They could almost be a competitor to Corsair at that point.

 

On the other hand, they could easily go the way of BFG.

 

Guess time will tell.

Edited by Sir Beregond
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20 hours ago, Sir Beregond said:

I thought so too. Saw some say maybe it is a negotiation move with Nvidia, but given Nvidia was informed in April, this seems unlikely. I suspect AMD might be similar, but hey why not be the hero Intel needs to get a 3rd competitor on the market?

 

Outside of that, I don't see why they can't pivot into their other markets, but I would expect there to be growing pains and downsizing initially to get there. Power supplies are clearly a solid segment of their business that they can grow. They could really work to expand on other peripherals and cases. I heard they were not continuing with motherboards, is that true? I was going to say they could expand there, or branch into memory. They could almost be a competitor to Corsair at that point.

I hate to say it, but honestly BEST case scenario I personally see out of them would be a competitor to DFI.  Worst case scenario, they'll be a competitor to BFG....which none of us want to see. 😞  A company that's seemingly dying, I just don't see them investing to be a competitor to Corsair in those markets.

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Just now, pioneerisloud said:

I hate to say it, but honestly BEST case scenario I personally see out of them would be a competitor to DFI.  Worst case scenario, they'll be a competitor to BFG....which none of us want to see. 😞  A company that's seemingly dying, I just don't see them investing to be a competitor to Corsair in those markets.

I did edit my post and noted they could go the way of BFG, which would be a shame, but definitely a possibility.

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SSD/NVME 2: Crucial MX500 1TB
PSU: Corsair RM1000x
MONITOR: LG 48" C1
Full Rig Info
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