NVIDIA Rolls GeForce Gaming Products into “Edge Computing” Category for Financials, Now Attributes to Less than 8% of Overall Revenue

Peter_Brosdahl

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NVIDIA has officially moved its GeForce Graphics card division into another category within its latest financial reports. It’s been a spell since NVIDIA introduced its first consumer-grade PC gaming graphics cards in the late 1990s and to say that the GPU market has changed since then would be a vast understatment. From competitors and partners […]

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I hate Jensen Huang. All these decades of people saying PC is dead and being wrong. Who would've thought that it would be PC gaming companies (company) that actually killed it.
 
Meh, this is so misleading. nvidia is artificially propping up the AI bubble. It is not sustainable. AI data centers are a money pit, there is no profit in it. They are just leveraging hype to make line go up. nvidia invests into ai companies to make them buy gpus, from nvidia, they are literally buying their own product with their own money. If this was a sane world it would be called a scam. But clearly it is not a sane world where elon musk is allowed to force pension funds to buy into his failing rocket solar AI company at 10x valuation.
 
I don't think nvidia will abandon PC gaming. I think it might spin off the gaming division at some point, but even then, I have my doubts. You see, gaming and AI GPUs have too much in common hardware wise, so it only takes "a few more steps" to make an AI GPU from a gaming GPU (like they did at first). So even if you reverse the process into AI first (like it's happening right now), nvidia would only have to strip down the AI gpu to build a gaming GPU

Also keep in mind that gaming GPUs are used for a lot of things, not just gaming, Professional GPUs are pretty much IDENTICAL hardware wise to its gaming counterparts, save drivers.

And don't forget not only nvidia is focusing on AI and "abandoning" PC gaming. AMD and Intel are doing it too. Of course, it doesn't hit as hard when combined, they only have less than 10% of the market share and Intel by itself, less than 1%. RDNA5 is maybe coming in late '27 if we are lucky and apparently intel has already quit the gaming front as gaming battlemage is apparently cancelled.

And lastly, the main reason the "big three" are "quitting" pc gaming is mainly because of the exorbitant RAM prices. While nvidia might get away with $3,000+ RTX 6900, not AMD nor intel could pull that off.

One more thing. Nvidia is the dominant player in pretty much every market its in, being gaming, AI, contest creation, previsualization rendering, post production, robotics, self-driving, multimedia, HPC, you name it. And I'm not talking about at least 50% market. In most cases its more than 75% and in many cases more than 90%. Do you really think nvidia would quit ANY of its markets when they have NO competition?
 
Nvidia isn't going to quit anything but they have to deliver product to the ai farms and do it at pace that the people standing these up dont suddenly become sane.

Several of these AI farms are going to go bankrupt and their hardware sold at a loss to recoup some money. Sadly ai/render cards with no output can't even be refreshed for GPU use cases. So it will be resold to nvidia to tear down and rebrand them for a consumer market that will be momentarily grateful.

Nows the time for an AMD to step up with some truly competitive cards with display outputs that are first sold to these AI farms.

At least thats my short sided take.
 
It also could be as simple as a matter of bean counting/disclosure guidelines. Given the ramp up of the data center/AI revenue, the gaming revenue might not be material (to the financials) anymore - which usually means it doesn't make sense to report on it separately....
 
David_Schroth said:
It also could be as simple as a matter of bean counting/disclosure guidelines. Given the ramp up of the data center/AI revenue, the gaming revenue might not be material (to the financials) anymore - which usually means it doesn't make sense to report on it separately....
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It's simpler than that. Gaming revenue is crashing and they don't want to spook investors with it, so they folded it into "other" category to hide it.
 
Grimlakin said:
Several of these AI farms are going to go bankrupt and their hardware sold at a loss to recoup some money.
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nvidia won't allow that, I'm sure there are clauses against reselling the GPUs that nvidia fronted for you in the first place. I've seen a bunch of videos on nvidia's shenanigans recently and some even alleged that nvidia makes contracts to buy back any excess compute capacity.
 
I wish there was a company out there making Graphics Processing Units that are specifically for processing graphics, and not AI bullsh1t. I wish there was a company that made gaming GPUs for gaming, and that their focus was ONLY on gaming GPUs. I also wish there was some f*cking competition in the gaming GPU market. Instead we got 3 @ssholes, two of which don't care about gaming GPUs anymore, and the 3rd one basically gave up before their 2nd generation even took off. I realize the RAMpocalypse is partly to blame, but still. And finally I wish gaming GPU prices would return to sanity. I complained about $400 flagship GPUs, and then flagships went to six hundred f*cking dollars, and now even the cards that are below the flagship have 4-digit prices. Absolute insanity. What a bunch of bull caca.
 
At this point I have to say the biggest hurdle to PC gaming is windows, direct x, drivers, etc etc. Thinking how expensive and seemingly difficult products are getting.
Is it even possible to achieve good effeciency with older but still fast memory, with smaller chips or with fatter chips on a slightly older process.
Seems the answer is no, and so nvidia and AMD release a gamut of crutches to supplement the poor enviroment they have to release products in.
And that, ultimately will kill pc gaming.
Honestly Xbox is and has been a conflict of interest for microsoft, and at this point I cant help but think it shows.
Windows has been twistec into a solely enterprise product, with 'home stuff' being treted as bloatware to be managed.
 
MadMummy76 said:
It's simpler than that. Gaming revenue is crashing and they don't want to spook investors with it, so they folded it into "other" category to hide it.
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Crashing? did you miss the part where nvidia has 90%+ market share on the gaming market? Sure it pales in comparison to AI, but its not pennies.
 
This video gives some good foreshadowing... or BAD actually... but it's still foreshadowing.


Our hobby, for some of us the very industry we operate in is struggling.
 
MadMummy76 said:
nvidia won't allow that, I'm sure there are clauses against reselling the GPUs that nvidia fronted for you in the first place. I've seen a bunch of videos on nvidia's shenanigans recently and some even alleged that nvidia makes contracts to buy back any excess compute capacity.
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Oh they will buy it back... for partial refunds. But as long as the business owns the cards they will be sold to whomever offers the best price legally especially under the guise of a bankruptcy filing.
 
Stoly said:
Crashing? did you miss the part where nvidia has 90%+ market share on the gaming market? Sure it pales in comparison to AI, but its not pennies.
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90% of the market that shrunk by 60% mind you.. That's still line go down, and investors are allergic to line going down. Plus I bet they are a bit embarrassed by the fact that they pulled the ladder up from gamers after climbing over our backs to the top.
 
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