Apparently the margins for board partners on the new 4000 series are so low that it made more sense for EVGA to sell power supplies instead of video cards.
If you ask me, I think Nvidia's endgame is to have a complete vertical supply stack. They want to be the next Apple and sell their own video cards directly to the customer, without any AIB involvement.
It might be a miscalculation on their end as we have not seen the next generation AMD cards. If they are a viable alternative in the low and mid range, Nvidia will have to adjust their business plan.
And there is also Intel, who has the biggest market share of integrated video solutions and has entered the discrete video card market with their Arc GPU's.
It's an exciting time to be looking for a new video card, as prices on the previous generation are dropping fast and there's plenty of choices for the next generation cards.
My suggestion if someone is in the market for a new video card, is to wait until AMD has introduced their next generation cards.
EVGA made a living on graphics cards for a long time . . . and many others are continuing to do so. There are clearly other factors involved in this decision, and mumbling Steve touches on at least some of that.
My guess is that CEO dude is thinking of retiring.
I stopped buying Evga cards when they stopped offering the lifetime warranties. Personally, I've had no problems with the FE cards and ones like Dell-OEM (MSI I think) and Zotac ... that are just the "Reference Design".
Back when I still bought AMD-GPU cards, I was getting them from XFX. I had no problems with RMA replacements (both times, got back brand new cards ... one was even next-year's family higher model).
Steve Burke from Gamers Nexus asked whether EVGA would instead turn to AMD. Their owner and CEO said no, there are no plans for that. Such a statement leaves the door open to interpretation. Such as when Gamers Nexus asked, does that mean EVGA has a non-compete agreement with Nvidia and can't comment on doing business with AMD?
EVGA walked away when they felt mistreated and under appreciated by Nvidia's CEO. Yes it was a low margin business for them when they had to pay staff to design cards, cooling systems and overclocking of Nvidia's sample stock.
I would NOT be surprised if we hear news that EVGA will sell AMD cards. It's a partnership just waiting to happen. AMD's CEO recently talked about a 1.1 billion dollar shortfall in revenue due to weak demand. Also now that the crypto market has slowed so has the back stock of videocard's by Nvidia and AMD. Now the 4000 and 7000 series from Nvidia and AMD are set to arrive later this year and Intel is set to enter the market with their Arc lineup.
If both EVGA and AMD can work something out that could be a win-win for the market.
Vanadiel
6 Professor
•
7.1K Posts
0
October 10th, 2022 13:00
Apparently the margins for board partners on the new 4000 series are so low that it made more sense for EVGA to sell power supplies instead of video cards.
If you ask me, I think Nvidia's endgame is to have a complete vertical supply stack. They want to be the next Apple and sell their own video cards directly to the customer, without any AIB involvement.
It might be a miscalculation on their end as we have not seen the next generation AMD cards. If they are a viable alternative in the low and mid range, Nvidia will have to adjust their business plan.
And there is also Intel, who has the biggest market share of integrated video solutions and has entered the discrete video card market with their Arc GPU's.
It's an exciting time to be looking for a new video card, as prices on the previous generation are dropping fast and there's plenty of choices for the next generation cards.
My suggestion if someone is in the market for a new video card, is to wait until AMD has introduced their next generation cards.
ProfessorW00d
4 Operator
•
2.4K Posts
0
October 10th, 2022 14:00
low margin X 40% market share = $$$
EVGA made a living on graphics cards for a long time . . . and many others are continuing to do so. There are clearly other factors involved in this decision, and mumbling Steve touches on at least some of that.
Tesla1856
8 Wizard
•
17.4K Posts
0
October 10th, 2022 14:00
My guess is that CEO dude is thinking of retiring.
I stopped buying Evga cards when they stopped offering the lifetime warranties. Personally, I've had no problems with the FE cards and ones like Dell-OEM (MSI I think) and Zotac ... that are just the "Reference Design".
Back when I still bought AMD-GPU cards, I was getting them from XFX. I had no problems with RMA replacements (both times, got back brand new cards ... one was even next-year's family higher model).
RodsterB
2 Intern
•
406 Posts
0
October 10th, 2022 14:00
Steve Burke from Gamers Nexus asked whether EVGA would instead turn to AMD. Their owner and CEO said no, there are no plans for that. Such a statement leaves the door open to interpretation. Such as when Gamers Nexus asked, does that mean EVGA has a non-compete agreement with Nvidia and can't comment on doing business with AMD?
EVGA walked away when they felt mistreated and under appreciated by Nvidia's CEO. Yes it was a low margin business for them when they had to pay staff to design cards, cooling systems and overclocking of Nvidia's sample stock.
I would NOT be surprised if we hear news that EVGA will sell AMD cards. It's a partnership just waiting to happen. AMD's CEO recently talked about a 1.1 billion dollar shortfall in revenue due to weak demand. Also now that the crypto market has slowed so has the back stock of videocard's by Nvidia and AMD. Now the 4000 and 7000 series from Nvidia and AMD are set to arrive later this year and Intel is set to enter the market with their Arc lineup.
If both EVGA and AMD can work something out that could be a win-win for the market.