One of the most important manufacturers of Nvidia-based graphics cards will no longer make them: EVGA has decided not to produce video cards with the next generation of Nvidia GPUs, the RTX 40 series, reports analyst Jon Peddie (opens in new tab). The news is even bigger than that, though: Speaking at Gamers Nexus (opens in new tab)EVGA CEO Andrew Han said the California-based company isn’t just phasing out Nvidia chips, but will “completely stop” making graphics cards in the future.
EVGA has been making graphics cards since its founding in 1999, going all the way back to Nvidia’s RIVA TNT2 chips, but Han “wouldn’t even want to work with Intel or AMD” to continue making cards, Gamers Nexus says.
EVGA’s decision is a result of frustration with Nvidia’s treatment of it, according to the two sources. it’s “about respect,” said Gamers Nexus. Graphics cards reportedly make up 80% of EVGA’s current business, but that doesn’t mean it’s planning to close up shop — it doesn’t even have layoffs planned. Once EVGA finishes selling its RTX 30 series cards, it will focus on its other products, which include motherboards, power supplies, and other computer components and peripherals.
Most of EVGA’s revenue comes from sales of Nvidia graphics cards at the moment, but Han told Gamers Nexus that the margin is incredibly small and that it makes 300% more profit from power supplies. Even so, it’s not entirely clear how EVGA will exit most of its business without laying off employees, including staff members currently dedicated to graphics card engineering and support. Expect “friction,” says Gamers Nexus.
EVGA’s decision isn’t the kind of dispassionate business move we’ve come to expect from companies of its size: Han reportedly believes Nvidia is treating EVGA unfairly. According to Gamers Nexus, the CEO said that the decision to stop working with Nvidia was “easy”.
According to Jon Peddie Research, “the relationship between EVGA and Nvidia has changed from what EVGA considered a true partnership to [a] customer-seller agreement whereby EVGA no longer received input on new product announcements and updates, did not appear at events, and was not notified of price changes.” .
EBGA’s direct communication on the matter reveals much less. In a statement posted by EVGA (opens in new tab) in its forums today, the company said it will continue to support its existing graphics cards, but “will not be bringing next-gen graphics cards.”
“EVGA is committed to our customers and will continue to provide sales and support for the current lineup,” the company said. “EVGA would also like to thank our great community for their many years of support and enthusiasm for EVGA graphics cards.”
PC Gamer has reached out to EVGA and Nvidia for comment.