Discussion EVGA exits video card market, terminates partnership with Nvidia (GN, JayzTC)

[HurleyBird]

News broken by GN. Even though there is no press release I can see right now, this is not a rumor. Info comes directly from EVGA CEO, citing difficulty working with Nvidia.

 

[maddie]

Jensen Huang has admitted his admiration of Apple and their business model for many years now. How can he possibly create a similar situation in the gamer GPU world with Microsoft and their DX versions, need to plug into various PC vendors, game designers wanting to sell into the total market? The man has big ones.

By the way EVGA notified Nvidia in April, before the recession was certain.

 

[Racan]

You tell ‘em Linus

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esquared
Anandtech Forum Director

 

[Shmee]

Just a reminder here for eveyone, AIB stands for add in board, which is completely different from partner company. I can't stand how many people don't know this.

 

[coercitiv]

Just a reminder here for eveyone, AIB stands for add in board, which is completely different from partner company. I can't stand how many people don't know this.

Terminology can morph in certain parts of the society, in this case the graphics card industry.

Here's a quote from Wizzard @ Techpowerup

When talking to people in or related to the graphics card industry, "AIB", refers to AMD/ATI's board partners (the companies, not the physical product). NVIDIA board partners are called "AIC".

So you will talk about "the AIBs are coming out with their own cards on day x", which specifically refers to their custom designs. I've also seen (rarer) use from less-technical more marketing people: "bundled by our AIB partners" (adding the word partners).

 

[Jaskalas]

Guess I'll get a 7900XT unless it sucks. I preferentially bought eVGA cards for nV models.

If EVGA thought AMD would treat them any better....
They probably wouldn't exit the market completely?

 

[GodisanAtheist]

If EVGA thought AMD would treat them any better....
They probably wouldn't exit the market completely?

- Card market is just gonna suck for everyone (except the consumer unless the manufacturers have anything to say about it) for a good long while here. Really a bad time to be trying to make inroads into any new market, esp on the other side of the GPU aisle where I'm sure AMD AIBs wouldn't be too happy to split their 15% marketshare one more way either.

 

[KompuKare]

Bummer ... EVGA was my "go-to" for Nvidia... in fact my current 3080 Founders Edition is the first none-EVGA primary GPU I've had in 14 years! (since my original 8800-GTX)

I doubt they'll be around for long after this move...have to wonder what effect the "lifetime" warranty on older cards had on the company financially.

I always found it trying that BFG folded right after Nvidia's infamous solder bump fiasco which destroyed millions of cards. Had a BFG 880 GT die on me just after that too.

AIB OEMs who offered long warranties must have really suffered over this.

 

[ThatBuzzkiller]

I imagine the next steps in evolution for Nvidia would be is to get rid of their only gaming console vendor that they're working with left and the holy grail is to end x86 interoperability if they can make it happen so that way they'll be truly insulated from the rest of the industry ...

 

[gorobei]

Linus went over the breakup

evga isnt courting amd or intel graphics right now because it would 'tarnish the history of their relationship' which he interprets as evga keeping a toe in the door in case nv ever gets their head out of their ass in the future and they can work together again. (also sapphire is the amd analogue to evga and nv, evga wouldn't be able to join the amd board partners in a favored position very easily.)

if nv gets beat by rdna3 or rdna4(same way they chiplet'ed intel into humility), it could be the wakeup call needed to teach nv to treat it's partners better (personally i doubt that will happen but we can hope) .

if nv goes the apple route in trying to control their whole vertical from supply chain to retailing, i doubt nv is ready for the warranty service requirements and customer expectations. they would have to turn up the reality distortion zone emitters to 1000 to convince consumers to pay the green tax needed to cover the contentious nature of card returns and replacements while still meeting nvidia's customary profit margins.
also selling chips to AIB partners helps keep their quarterly statements looking nice by keeping returns and poor sales off the books. that all goes away if they become the only retailer through direct sales.

 

[moonbogg]

Tinfoil hat time. Maybe it's a trick to justify low inventory and high prices of 4000 series. Once 3000 series is cleared, EVGA comes back and says "Well actually, they apologized. So we'll keep making cards now." I'm sure this idea is stupid. Maybe you can tell me why.

 

[coercitiv]

Imagine not getting the scoop on a juicy piece of news like this. What do you do? You redirect to the Intel story.

 

[NTMBK]

View attachment 67692

Imagine not getting the scoop on a juicy piece of news like this. What do you do? You redirect to the Intel story.

Just because he has Intel sources doesn't mean he has EVGA sources.

 

[coercitiv]

Just because he has Intel sources doesn't mean he has EVGA sources.

OFC, but why attempt to divert from the EVGA/NVIDIA story into Intel Arc? As he mentions later, his channel has enough coverage on Nvidia's toxic relationship with their partners. He can build on that quickly and release new meaningful content. But the initial reaction? Divert towards Intel, as if it has anything in common with this story.

 

[Shmee]

Terminology can morph in certain parts of the society, in this case the graphics card industry.

Here's a quote from Wizzard @ Techpowerup

That is pretty dumb sounding.

 

[JustViewing]

This is exactly why Intel needs to succeed. Otherwise AMD would become the next Nvidia.

 

[DrMrLordX]

Imagine not getting the scoop on a juicy piece of news like this. What do you do? You redirect to the Intel story.

MLID should learn to just shut up sometimes.

As far as EVGA's future goes, they can probably expand their PSU footprint in the US by (hopefully) sourcing some units that are difficult to get in the United States. And by that I mean, going back to SuperFlower and bringing some more of their stuff over here. They can also expand their AMD motherboard lineup. They didn't even have anything X570 ready for launch back in 2019, but they sure have some X570 boards now . . .

 

[JustViewing]

I heard Raja is sending his best hot dishes to EVGA head quarters .

 

[Kaluan]

You reap what you sow I suppose (not talking about EVGA).
On the one hand this makes me giggle at the idea that every once in a Blue Moon, corporations (nVidia) are getting some sort of accountability, on the other I'm sad, EVGA was one of the only things still making nVidia GPUs attractive to me. But that's moot ATM, I'm going with a AMD GPU next gen anyway.

Continuing on that tangent, I think this will sour a sub-set of GeForce buyers very much, possibly even into not buying GeForce anymore at all.
I already know what I'd recommend to them instead haha... Sapphire.

Fingers crossed they eventually go with AMD (and/or Intel... but I don't want to entertain this subject lol). Don't want to see them fall of the map just yet, I also love their PSUs.

 

[Zor Prime]

EVGA was my go-to. Makes me wonder if this hadn't been coming down the pipeline for a while, about a month after I bought my 3090 and paid extra for a 10-year warranty on it EVGA reduced the max warranty period and jacked up the price for their extended warranties.

I have a feeling this might be to get preferential treatment from nVidia, but if not hopefully they go AMD. I bought EVGA exclusively now for some time due to their top tier support ... because sometimes capacitors and such go boom.

 

[BarkingGhostar]

Nvidia don't respect 20 years of partnership. Just imagine the mess if Nvidia had bought ARM.

Nvidia doesn't respect anything, let alone partnerships. They certainly don't respect you and me--miners, yes, but now individuals/gamers.

 

[moonbogg]

Maybe this is why JayzTwoCents made his "BUY NOW" video?

 

[DAPUNISHER]

I think they got out at the perfect time. The gpu business will be under pressure for the short to medium term with the mining gpu overhang, inventory overhang and threats of recessions in large parts of the Western world. Sure they would have some R&D invested in the 4000 series, but sounds like the CEO likes his sleep more than gpu marketshare during this turbulent time.

Underrated comment.

Why watch those record profits from '20-'21 go down the drain? Or continue to suffer the bullying and indignities Nvidia heaps on you, to go along with that declining revenue and profit? Time to cut and run.

It is going to get ugly in this market for quite a while. There may be more casualties yet before it's over.

 

[eek2121]

Margins have been atrocious for a few generations now. It is clear NVIDIA needs to change. AMD is guilty as well, but from what I understand,
margins are slightly better there.

Either NVIDIA and AMD need to sell direct or they need to raise prices. The total BOM should ideally be no more than 30% of the cost of the card.

 

[DAPUNISHER]

Maybe this is why JayzTwoCents made his "BUY NOW" video?

Let them laugh at you for saying it. My observance of the shenanigans people pull over the decades has made me skeptical and cynical. Therefore, It is not hard to envision that Jay, a self professed EVGA shill, with his hand in their pockets, walked into that meeting knowing what the others didn't. He could have very well have been trying to help them get those cards sold at less of a loss before things got uglier, as you speculate.

 

[DeathReborn]

Can someone please tell me who JazTC is? I know JTC = JayzTwoCents but haven't heard of the weird named one.

That is pretty dumb sounding.

That's how you know it's true.