EVGA falls with Nvidia – and stops making graphics cards

PC graphics card manufacturer EVGA announced that it would end manufacture of all GPU hardware at the end of this current hardware generation, following a large-scale falling out with the GPU tech titan Nvidia.

In a move that is likely to have major repercussions for the PC gaming hardware industry, EVGA isn’t just abandoning Nvidia – it also has no plans to build GPUs with AMD or Intel, Nvidia’s two main rivals. The company, which is well known for making high-quality cards at reasonable prices, will instead exit the GPU business altogether.

The news was announced today by a small number of hardware outlets in various detailed reports, the best of which can be found on the brilliant GamersNexus on YouTube (and embedded below). These outlets have been notified directly by EVGA, which has confirmed that despite building prototypes and test cards based on Nvidia’s upcoming 40-series GPUs, it will not continue with these products – or any other Nvidia products. .

The statement was confirmed on the official site, but only in a short forum post from an EVGA product manager. “EVGA will not offer next-generation graphics cards,” the statement offers, before reiterating that support for current-generation products will continue.

The falling out seems to be mostly about the 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 makes these GPUs and essentially cuts out the “middleman” of third-party manufacturers such as EVGA, Gigabyte, or Asus, it can charge less – and therefore gain a position in the market that puts other manufacturers in an impossible situation. The claim is that in many cases, it’s impossible for EVGA to actually sell certain 30-series GPU models at a profit, such is the size of the undercut that Nvidia is able to achieve with its in-house cards.

Speaking to GamersNexus, EVGA CEO Andrew Han described the decision as a matter of principle rather than strictly financial – continuing to elaborate with claims that Nvidia’s communication and treatment of its partners had been poor. .

For EVGA, this is a major decision. Although EVGA makes other products, including power supplies, GamersNexus reports that more than 70% of the company’s revenue comes from its GPU department – a market the company is now looking to exit entirely. It could also be painful for Nvidia, as EVGA accounts for a large percentage of Nvidia GPU sales worldwide – but that gap can simply be filled by other partners.

For some reason, EVGA isn’t interested in engineering GPUs with AMD or Intel technology – and so it walks away. Despite this, and despite the number of employees who will no longer have brand-relevant skills, EVGA senior executives say they have no plans to make headcount reductions.

This all comes at a particularly interesting and challenging time in the PC hardware market, particularly around GPUs. Over the past two years and throughout the pandemic, demand for GPUs has exploded thanks to a combination of demand for gaming hardware and the crypto craze. This led to skyrocketing prices and low availability, prompting GPU makers to up their game and ramp up production. Then, as expected, the bottom fell off.

As cryptocurrency values ​​plummeted, miners sold their old cards and demand plummeted – leading many hardware companies to take a dip, left sitting on huge excess inventory. A shortage turned into a surplus almost overnight. Nvidia ended up missing its revenue forecasts by a big margin. This is the position we find ourselves in now, at the dawn of a new generation in the form of the 40 series, but with an excess of 30 series products clogging up the supply chain.

Whatever happens with Series 40, EVGA will no longer be a part of it. The company will continue to sell its existing inventory of 30-series 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 stop making GPUs.