EVGA is supposedly so fed up with dealing with Nvidia that it may cease producing graphics cards entirely.
According to reports, the decision was made out of "respect."
Image Credit : EVGA
One of the most important manufacturers of Nvidia-based graphics cards will cease production: According to analyst Jon Peddie, EVGA has opted not to create video cards featuring Nvidia's next generation of GPUs, the RTX 40-series (opens in new tab). However, the news is far more significant: EVGA CEO Andrew Han told Gamers Nexus(opens in new tab) that the California-based business will not only forgo the next generation of Nvidia processors, but will "totally discontinue" developing graphics cards in the future.
EVGA has been creating graphics cards since 1999, dating back to Nvidia's RIVA TNT2 processors, but Han "wouldn't even contemplate the thought of partnering with Intel or AMD" to continue developing cards, according to Gamers Nexus.
According to both reports, EVGA's move is motivated in part by dissatisfaction with Nvidia's handling of the company; it's "about respect," according to Gamers Nexus. Graphics cards represent apparently 80% of EVGA's current business, but that doesn't imply it intends to stop shop due to its split with Nvidia—in fact, it informed Gamers Nexus that it has no plans for layoffs. Once EVGA's supply of RTX 30-series cards has been depleted, the company will concentrate on its other goods, which include motherboards, power supplies, and other PC components and peripherals.
Right now, the majority of EVGA's revenue comes from Nvidia graphics card sales, but Han told Gamers Nexus that the margin is razor small, and that EVGA earns 300% more profit on power supplies. Even yet, it's unclear how EVGA would exit the majority of its company without laying off any people, including those committed to graphics card engineering and support. According to Gamers Nexus, "attrition" is to be expected.
EVGA's choice isn't the kind of cold-blooded corporate decision one might expect: Han apparently believes Nvidia has been unfair to EVGA, and he told Gamers Nexus that the choice to discontinue cooperating with Nvidia was "simple" because working with Nvidia was so difficult.
According to Jon Peddie Research, "the relationship between EVGA and Nvidia shifted from what EVGA saw as a true partnership to [a] customer-seller arrangement in which EVGA was no longer consulted on new product announcements and briefings, was no longer featured at events, and was not informed of price changes." According to Peddie and Gamers Nexus, EVGA was also irritated by Nvidia undercutting its cards with its own Founders Editions.
Much less is revealed by EVGA's direct discussion on the subject. EVGA(opens in new tab) said today in its forums that it will continue to support its existing graphics cards but "will not carry the next generation graphics cards."
"EVGA is dedicated to our customers and will continue to provide sales and support on the current portfolio," the business stated. "EVGA would also like to thank our wonderful community for their many years of support and passion for EVGA graphics cards."
The actual nature of Nvidia's partnership with EVGA remains unknown. The business did issue PC Gamer a comment on EVGA's exit from the GeForce scene, but it was as polite as it gets.
"We've had a terrific cooperation with EVGA over the years and will continue to support them on our current generation of devices," a spokesman from Nvidia stated. "We wish Andrew [Han] and our EVGA colleagues the best."
I believe it's reasonable to infer that Nvidia would have more to say if it weren't a publicly traded business with a $328 billion market valuation, but that's all we're getting for the time being.
Other manufacturers, such as Gigabyte, ASUS, and Zotac, are expected to fill the void left by EVGA's absence from the Nvidia graphics card market. Nvidia recently revealed "Project Beyond," which we presume refers to the future GeForce RTX 40-series GPUs. We anticipate hearing more this month.
The 30-minute Gamers Nexus video on EVGA's exit from the graphics card sector contains further conjecture on the firm's intentions, as well as more on Han's future plans—the EVGA CEO informed the channel that he had no plans to retire or sell the company.