EVGA goes against Nvidia – and stops making graphics cards

Computer graphics card manufacturer EVGA has announced that it will end production of all GPU hardware at the end of this current generation of hardware, following a major dispute with GPU technology Nvidia.

In a move that’s likely to have major ramifications across the PC gaming hardware industry, EVGA isn’t just ditching Nvidia — it also has no plans to move into building GPUs with AMD or Intel, Nvidia’s two main rivals. Instead, the company, which is known for making high-quality cards at reasonable prices, will exit the GPU business altogether.

The news was delivered today by a small number of hardware media specialists in various detailed reports, the best of which can be found at the excellent GamersNexus on YouTube (and embedded below). These outlets were notified directly by EVGA, which confirmed that despite building prototypes and test cards based on Nvidia’s upcoming 40-series GPUs, it would not be moving forward with those products – or any other Nvidia products.

The statement was confirmed on the official website, but only in a short forum post by an EVGA Product Manager. “EVGA will not be carrying next-gen graphics cards,” the statement reads, before reiterating that support for current-gen products will continue.

The disputes seem to be mostly about money, of course, with EVGA’s main complaint being that Nvidia is allegedly undercutting third-party cards with its own ‘Founders Edition’ cards. Because Nvidia manufactures these GPUs and essentially cuts out the “middle man” of third-party manufacturers like EVGA, Gigabyte or Asus, it can charge less – and as a result, gain a market position that puts other manufacturers in an impossible position. The claim is that in many cases it is impossible for EVGA to actually sell certain 30-series GPU models at a profit, such is the size of the lowest price Nvidia can command with its internal cards.

Speaking to GamersNexus, EVGA CEO Andrew Han described the decision as a matter of principle and not strictly financial – following up on claims that Nvidia’s communication and treatment of its partners was poor.

For EVGA this is an important decision. Although EVGA makes other products, including Power Supplies, GamersNexus reports that over 70% of the company’s revenue comes from its GPU division – a market the company is now looking to exit entirely. This may also be painful for Nvidia, as EVGA accounts for a significant percentage of Nvidia’s GPU sales worldwide – but that gap may just be filled by other partners.

For whatever reason, EVGA isn’t interested in making GPUs with AMD or Intel technology – so they’re walking away. Despite this, and despite how many employees will no longer have skills relevant to the brand, EVGA’s top executives say they have no intention of making any layoffs.

All of this comes at a particularly interesting and difficult time in the computer hardware market, especially around GPUs. Over the past two years and throughout the pandemic, GPU demand has skyrocketed thanks to a combination of demand for gaming hardware and the cryptocurrency craze. This led to skyrocketing prices and low availability – which caused GPU manufacturers to up their game and ramp up production. Then, as expected, the bottom fell out.

As cryptocurrency values ​​fell, miners sold their old cards and demand fell – leading to many hardware companies taking a bath and sitting on huge excess inventories. A shortage turned into a surplus almost overnight. Nvidia ended up missing its revenue forecasts by a huge amount. That’s where we are now, on the cusp of a new generation in the form of the 40 Series, but with excess 30 Series products clogging up the supply chain.

Whatever happens with series 40, EVGA will no longer be part of it. The company will continue to sell through its existing inventory of Series 30 cards and hold back some units to ensure it can meet warranty and repair requirements for cards it has already sold. Once the stock runs out, however, the company plans to make no more GPUs.

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