EVGA Terminates Partnership with NVIDIA, Citing “Disrespectful Treatment,” Plans to Exit Graphics Card Market

Watch the ltt story on this. Nvidia has a solid anti compete. They don't have to sell their cards but they are still contractually and legally obligated not to sell anyone else's
 
Grimlakin said:
Watch the ltt story on this. Nvidia has a solid anti compete. They don't have to sell their cards but they are still contractually and legally obligated not to sell anyone else's
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So what about all the AIBs doing both AMD and NVIDIA products? Ltt is probably talking nonsense again.
 
Stoly said:
I don't think they can afford to wait that long.
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That's possible. And I tend to agree - when you just cut off 4/5 of your revenue, you have to make drastic changes quickly in order to survive.

I've also heard that the 4k series is going to be an extremely soft release because of the inventory issues with the 3K series. Missing out on release would be the worst possible time to miss, but if it's just a soft release anyway with no volume to speak of, you haven't really missed out on anything.

So I wouldn't be shocked if EVGA announces it's coming back to nVidia cards - but I admit, from everything I've seen and read so far, it sure does sound like some bridges got burned. It may very well be that because of the soft release EVGA was going to take a beating either way they went.

I saw a shocking graph from JPR - I don't know how accurate it is, but it was in a hardwaretimes article. If it's true, then we can expect more AIBs to start moving away too - if for no other reason than they won't be able to afford continuing with such low margins and trying to compete against an unreasonable MSRP -- which is solely set for nVidia's profit margin.

1663437396145.png
 
Just got done listening to GN's video on this. I'm floored. I remember back in the day with Kyle taking a hard stand against nVidia and their anti-competitive practices.

eVGA went all-in on the mining craze and now that ship as hit the iceberg. It's sinking, and fast. They are losing hundreds of dollars on their cards vs. FE pricing. Mind you they made a KILLING on their cards before the Etherium merge, but those days are now gone.
 
Space_Ranger said:
eVGA went all-in on the mining craze and now that ship as hit the iceberg.
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Hmm that's a good point. I wonder how much they were able to pad their warchest with during the mining boom -- they ~might~ have enough stashed away to weather this storm. I didn't even think of that.
 
I was trying to remember other brands that bailed, switched or died.

I recall XFX, ELSA, DIAMOND, BFG and now EVGA.

Just remembered Creative Labs.

Anyone else?
 
Stoly said:
I was trying to remember other brands that bailed, switched or died.

I recall XFX, ELSA, DIAMOND, BFG and now EVGA.

Anyone else?
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I had an off brand 660ti a while back... Sparkle maybe? Not sure if Microcenter goes back 10 years of orders but let me look.

edit - ok the 660ti was Gigabyte. The Sparkle I was thinking about was a GTX 460 from 2010
 
Stoly said:
I was trying to remember other brands that bailed, switched or died.

I recall XFX, ELSA, DIAMOND, BFG and now EVGA.

Just remembered Creative Labs.

Anyone else?
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Guillemot/Hercules

I still have my creative Voodoo 2 :p
 
Honestly Nvidia should get it over with and have their own board manufacturing facilities. Assuming they don't, surely this aint as much of an investment as silicon chips.
 
Uvilla said:
Honestly Nvidia should get it over with and have their own board manufacturing facilities. Assuming they don't, surely this aint as much of an investment as silicon chips.
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They kinda do - Foxconn manufactures the FE cards. They probably make them for a lot of the other AIBs as well.
 
Uvilla said:
Honestly Nvidia should get it over with and have their own board manufacturing facilities. Assuming they don't, surely this aint as much of an investment as silicon chips.
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*cough* remember 3DFX? *cough*

Being the sole manufacturer AND seller of your GPUs sounds like a good idea, but it probably isn't.

On the other hand, Nvidia cranks out so many mobile GPUs as well (plus all their SOC stuff) maybe they could get away with it. Or just go all in with FoxConn... but trusting Chinese companies 100% to not screw you over could be a trick.
 
Space_Ranger said:
Just got done listening to GN's video on this. I'm floored. I remember back in the day with Kyle taking a hard stand against nVidia and their anti-competitive practices.
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Nvidia increasingly seems to not be terribly interested in the slice of their revenue that comes from selling their GPUs to AIBs. If I were to guess, it'd be that this slice of their revenue has been shrinking significantly in proportion to the rest of their revenue sources.

Not excusing their behavior, just trying to make some sense of it.

Space_Ranger said:
eVGA went all-in on the mining craze and now that ship as hit the iceberg. It's sinking, and fast. They are losing hundreds of dollars on their cards vs. FE pricing. Mind you they made a KILLING on their cards before the Etherium merge, but those days are now gone.
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I don't think any manufacturer could have avoided the mining craze. I wouldn't hold it against anyone for making what they could, when they could - but this does make one wonder why a company flush with cash that would help them weather whatever market uneasiness comes with the 4000-series release would just jump ship.

It does reinforce the understanding that this is EVGAs choice, more than any market forces.
 
This is a bit of a different take on it

www.igorslab.de

EVGA pulls the plug with a loud bang, but it has been stewing for a long time | Editorial | igor´sLAB

If you want to (or have to) separate, then there are two ways to announce this: one emotionless and one where you once again seek the big stage. EVGA chose, what a coincidence, the time shortly before…
www.igorslab.de www.igorslab.de

The reddit comments are enlightening as well

https://www.reddit.com/r/hardware/comments/xi37im

It makes for a compelling opposing viewpoint, I have to admit, but also have to realize the author was blacklisted from review samples and that influences the way this reads (again, not saying that was right or not as I don't know the whole story, just being transparent)
 
Brian_B said:
That's possible. And I tend to agree - when you just cut off 4/5 of your revenue, you have to make drastic changes quickly in order to survive.

I've also heard that the 4k series is going to be an extremely soft release because of the inventory issues with the 3K series. Missing out on release would be the worst possible time to miss, but if it's just a soft release anyway with no volume to speak of, you haven't really missed out on anything.

So I wouldn't be shocked if EVGA announces it's coming back to nVidia cards - but I admit, from everything I've seen and read so far, it sure does sound like some bridges got burned. It may very well be that because of the soft release EVGA was going to take a beating either way they went.

I saw a shocking graph from JPR - I don't know how accurate it is, but it was in a hardwaretimes article. If it's true, then we can expect more AIBs to start moving away too - if for no other reason than they won't be able to afford continuing with such low margins and trying to compete against an unreasonable MSRP -- which is solely set for nVidia's profit margin.

View attachment 1909
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This post got pumped and in light of recent 4K series pricing, another thing stood out to me

I marked up this image with "Total Margin" -- How much of the retail price of that card is profit. If you think about it, it's ... striking to think that the 4090 that's retailing for $1500 really only costs about $375 to make, and the rest of that is pure on-the-top gravy, almost entirely for nVidia.

I'd also say, the trajectory of that line has come down (or maybe flatlined - I don't have exact numbers, just kinda extrapolating based on the chart) - but the overall margin is already so very high, and even that growth has come at the expense (allegedly) of the AIBs

Final comment - don't confuse this with total revenue: this is average markup on retail GPU.

1663437396145.png
 
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