EVGA exits the GPU market, the relationship with NVIDIA was not good

In a drastic turn of events, EVGA announced to their closest press associates that they have decided exit the GPU manufacturing business. Because of this, do not expect to see any EVGA GeForce of the RTX 40 series. Even less to see a custom GPU from AMD or Intel, and that is that they leave the market permanently.

This NVIDIA Premium partner thus closes a stage that at least we thought it was successful, and we are facing one of the longest-lived assemblers in history. Their first GPU released was the EVGA e-Vanta LTan NVIDIA graphics card released andin the year 2000 with a chip manufactured to a manufacturing process of 250nm with access to 20 CUDA Cores at a frequency of 80MHz together with 8 MB of SDR memory at 0.1 GHz that reached a bandwidth of 800MB/s. The summary could be that the company has been able to launch, without problems, more than 500 different GPUs to market in collaboration with NVIDIA.

This announcement is surprising, since even an EVGA RTX 4090 had been seen

RIG mining GPU Ethereum

Although the company already had some other engineering samples with what will be NVIDIA’s future top-of-the-range GPU, the GeForce RTX 4090, EVGA finally decided not to take it to production.

The reasons behind the abandonment of the market are unknown, but at least it is indicated that there was no good relationship with NVIDIAso we do not know if it is due to something related to the cryptocurrencies. This translates into the current market situation, with many brands trying to get rid of the stock to recover the investment made while trying to make room for the new generation of GPUs. In the past many companies were helpless by such a situation.

“EVGA has terminated its relationship with NVIDIA and will stop manufacturing graphics cards of any kind“, citing a sour relationship with NVIDIA as the cause (among other reasons that were downplayed). “EVGA will not be exploring relationships with AMD or Intel at this time, with the company imminently focused on exiting the graphics card market.” said Andrew Han, CEO of EVGA.

“Customers will continue to be covered by EVGA’s policies, but EVGA will no longer make RTX or other graphics cards. The company has already made about 20 EVT samples of the EVGA RTX 4090 FTW3, but they will not go into mass production.” and has deleted all active card-related projects, including KINGPIN cards.”

Recent price reductions in GPUs: the straw that broke the camel’s back for EVGA

According to the market analyst Jon Peddie Research. There were so many things that added up to this situation. The last one took place just days ago, when when reduced the price of the NVIDIA GeForce RTX 3090 Ti. Well, at least NVIDIA reduced it, at a price of $1,099.99while EVGA was selling it at the same time for $1,399.99. As indicated, NVIDIA would not have notified EVGA of the decision to lower its prices and left this company, and other partners, with their ass in the air without the possibility of selling them.

“Slowly, over time, the relationship between EVGA and Nvidia evolved from what EVGA considered to be a true partnership to a customer-seller agreement whereby EVGA was no longer consulted about new product announcements and information sessions, did not appear at events and was not informed of price changes,” JPR said.

“On September 7, Nvidia offered an RTX 3090 Ti through Best Buy for $1,099.99, slashing the price of EVGA and other partners offering their products to $1,399.99. There was no notice of the price cut, and left partners with little choice to sell their inventory below cost to meet Nvidia’s price.MSI dropped their price to $1,079.99 on New Egg, and EVGA dropped theirs to $1,149.”

EVGA GeForce RTX 3090 Ti FTW3 Ultra

“But at the same time manufacturing costs, R&D costs and market costs have gone up, AIB’s partner margins are down. The old joke about compensating with volume got less and less funny over the years. Nvidia’s marginnevertheless, it was going up over time as it moved into adjacent markets.

“However, the cost of EVGA’s, and presumably other AIB partners’, products, manufacturing, and marketing increased. In addition, EVGA is unusual compared to its peers in the AIB market because the company maintains a large engineering staff and designs its PCB and cooling system, as well as providing software for monitoring and overclocking (EVGA Precision). It has top-notch customer support 24 hours a day and 7 days a week. A 48-hour RMA return policy. And an innovative queuing system that delivered AIBs to players during the pandemic. EVGA also put more into its packaging than most (if not all) of its competitors as part of its goal to be the provider of quality AIBs for the discerning high-end gamer.”

EVGA’s future at risk without making any GPUs?

The curious thing about all this is that 75% of income of the company come from NVIDIA GPUs. In this way, breaking this agreement will imply serious problems at the viability level future of the company. Not to mention having to seriously buckle down and re-staff him.

“We have had a great partnership with EVGA over the years and will continue to support them on our current generation of products. We wish Andrew and our friends at EVGA all the best,” said an NVIDIA spokesperson.

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