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

[mastertech01]

Apples and oranges... Have you noticed that its hard to buy a new car right now ? Know why Carvana and the like are booming in used cars ? The makers can't get the chips for new cars. Some are building up to a point then letting the cars sit until they can put in all the chips needed. If you want to order a car you probably will pay as much as 10-20,000 over MSRP. If you find one on the lot, only a couple thousand over MSRP.

On the other hand there is a small glut of video cards, and the prices are dropping like a rock.

Now THAT sir is apples to oranges

 

[DAPUNISHER]

I dont quite understand why they are losing hundreds on end of the run stock. Dealers selling cars for thousands, even tens of thousands off to get rid of end of model year vehicles to clear space for the new models and recoup the money to invest in the new models. How much did the video card makers make during the past several years of the mining boom? Isnt it now just time to clear out the rest of the old cards which undoubtedly have much higher profit margins to shave off? Even at a loss?

I am not really qualified to answer that, but I will make a best guess. Also, I am only relating the info provided by the tech tubers covering the story. IIRC they said the mid and low end are profitable, but 3080 and up they lose money on. Hundreds per card if memory serves.

My best guess is, the cards they produced during the pandemic would have had a higher BoM due to supply chain disruption. Most companies work on just in time manufacturing principles, so they didn't have cheap components to use moving forward.

 

[DooKey]

The quote from EVGA was: "this was not a financial decision" but I agree with you that's exactly what it was! (just indirectly)

No question Nvidia is run by a bunch of knuckle-heads who don't give a crap about their vendors.

What happens to businesses that don't base business decisions at least partially on finances? They go out of business. I suspect Andrew has made his bucks and just wants to enjoy them. Why continue to struggle when the economy is going bad? He needs to take time off and relax. So long, and thanks for all the fish, Andrew.

 

[Captante]

Apparently the cards EVGA had the biggest problem with were the "Founders Edition" cards which Nvidia supposedly used to undercut them.

Thing is though that argument doesn't really hold up.... people mainly bought the FE cards because for a long time they were by far the most commonly available cards. (that's why I bought mine)

When I bought my 3080 right at the end of 2020 there was nary a sign of ANY EVGA card (despite me signing up at the beginning to reserve one!)

Once the massive 3-slot/3-fan overclocked cards from EVGA finally did hit Ebay/Amazon the people buying them were not really shopping for a 2-slot stock-clocked and relatively low power-limit FE card at all and they sold like crazy from what I observed.

 

[guidryp]

Isnt it now just time to clear out the rest of the old cards which undoubtedly have much higher profit margins to shave off? Even at a loss?

The point is that they don't have big profit margins. Most of the money goes to NVidia.

NVidia is currently selling Founders Cards for less than it costs AIBs to build their cards.

 

[mastertech01]

The point is that they don't have big profit margins. Most of the money goes to NVidia.

NVidia is currently selling Founders Cards for less than it costs AIBs to build their cards.

My point is they should have low enough remaining inventories that even if they sold off what is left at cost they get it off the books and move on to the next gen. They should have made the most of their profit from prior sales.

 

[guidryp]

My point is they should have low enough remaining inventories that even if they sold off what is left at cost they get it off the books and move on to the next gen. They should have made the most of their profit from prior sales.

It looks like most were caught with excess inventory when crypto bubble burst again.

 

[Captante]

My point is they should have low enough remaining inventories that even if they sold off what is left at cost they get it off the books and move on to the next gen. They should have made the most of their profit from prior sales.

ALL the GPU makers were literally printing money like maniacs while they stumbled over each other to ship nearly every GPU they could pump out the door to miners/scalpers for the last two years while gamers hung in the wind to twist.



Then they got greedy, overproduced and some have been left holding the bag when prices tanked but I'm supposed to feel sorry for them? (lol tough luck!)

I feel bad about EVGA for the nice regular people that will undoubtedly be losing their jobs behind this AND I feel bad for us PC enthusiasts to a far lesser degree but I don't feel any pity at all for the company big-wigs.

 

[GodisanAtheist]

Personally I would no longer buy any EVGA product that might need warranty support down the road because I doubt they are going to be around at all in a couple years. (and now I'm REALLY glad I went with a 3080FE)

-I would buy an EVGA product, but at a HEAVILY discounted price. I'm talking another 40-50% off of current new prices.

Time for them to firesale their inventory and parachute on out of the game.

Would have actually preferred that move over promising warranty support and keeping a stockpile of cards on reserve.

 

[Captante]

-I would buy an EVGA product, but at a HEAVILY discounted price. I'm talking another 40-50% off of current new prices.

Time for them to firesale their inventory and parachute on out of the game.

Would have actually preferred that move over promising warranty support and keeping a stockpile of cards on reserve.

Every man has his price!

Fortunately I'm not in the market at the moment.

 

[Markfw]

-I would buy an EVGA product, but at a HEAVILY discounted price. I'm talking another 40-50% off of current new prices.

Time for them to firesale their inventory and parachute on out of the game.

Would have actually preferred that move over promising warranty support and keeping a stockpile of cards on reserve.

I think they did already. On their website, NO 3080TI, 3090,3090TI or 3080 12gig , and only one model of 3080. I did not check below.

 

[UsandThem]

Obligatory classic meme

 

[dlerious]

Nope they’re leaving the card market entirely. Seems very risky since cards are 80% of their revenue.

But not 80% of profit. GN said their profit on PSUs were 300% higher than GPU.

 

[aigomorla]

I promised myself never to buy Nvidia direct because there reseller's platform Digital River is worse then Newegg down from returns, precharge (which is illegal in some states), and Returns / RMA's.

If i have to get a founders, id probably go down to bestbuys, and not use Nvidia's Website.

But i am sad seeing eVGA bail out like this.
There CS is the industry's best if located in the US.
The RMA facility is like 1 hour drive from my location, so i always got fast shipping, and turn arounds.

As for Kingpin, i do not think we'll see anymore Kingpin gear anymore.
He will probably go over to ASUS, or MSI, like how Shimano went to Gigabyte when eVGA dropped the entire Classified Line, hence why you don't see anything labeled "classified" anymore from eVGA.

 

[jpiniero]

I promised myself never to buy Nvidia direct because there reseller's platform Digital River is worse then Newegg down from returns, precharge (which is illegal in some states), and Returns / RMA's.

IIRC nVidia shut down their retail store. They mostly use Best Buy now to sell the FE.

 

[HurleyBird]

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

Fixed that, thanks.

 

[moonbogg]

I think they did already. On their website, NO 3080TI, 3090,3090TI or 3080 12gig , and only one model of 3080. I did not check below.

I noticed they were sold out as well. I heard they had TONS to sell and would be overloaded with stock all this year. Unless they got more coming, looks like their GPUs are all gone and they can close up shop already.

 

[DrMrLordX]

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.

TBH I think it may be backwards, that Jay was being kind of a doof and assuming that NV would magically find a way to keep supplies low/prices high while also assuming that The Merge wouldn't happen on time (or at all). But EVGA probably saw him as being friendly to their cause (as well as NV's) and decided to call him in since he's a guy that would be right there, on the spot, reporting everything exactly the way EVGA wanted it reported.

Besides, he wasn't the only one they called out there.

 

[moonbogg]

I was simply thinking more that Jay was being nice to his viewers to give them a heads up, but without spilling the beans about EVGA. Maybe he knew EVGA stock would be gone soon, but also maybe knew that GPUs could be in short supply with EVGA gone? You see, we all assumed that EVGA would be pumping out 4000 series cards as expected. I think Jay knew they wouldn't, so he warned his viewers to go ahead and buy now before a major supply issue erupts due to EVGA bailing.

 

[DrMrLordX]

I was simply thinking more that Jay was being nice to his viewers to give them a heads up, but without spilling the beans about EVGA. Maybe he knew EVGA stock would be gone soon, but also maybe knew that GPUs could be in short supply with EVGA gone?

But they won't be in short supply.

 

[moonbogg]

But they won't be in short supply.

They won't? Well shucks, never mind then.

 

[aigomorla]

I really don't see how eVGA can survive this without selling GPU's.
They have to have had a backup which they are being very quiet about.

They either got RDNA's being made up, or Intel has partnered with them as intel has no clue on how to make a GPU outside the die only packages. Hell maybe Intel Bought them, or bought the entire GPU division, as Intel really has no clue on how to design a proper GPU layout and board.

The motherboard division is OK, but i do not know of many people that have eVGA boards.
I have one, i wanted a X570S but the price tag made me go look the other way.
eVGA PSU's are great, but they are not the best, and they are not even made in house, but by a primary.
eVGA has no known PSU specialist either, Corsair has JonnyGuru, yes our former Moderator JonnyGuru.

eVGA's peripherals all suck horrible bad compared to steel series, Razor and logitech.
They are not even listed in eSports. They had to mark the keyboard and mouse down almost 80% MSRP to have them get sold.

If there trying to go the route of Corsair, then no, the PC case division they have is utter nonsense, especially that carbon fiber biker frame they tried to milk money out of us, that rivals a price tag on a few SMART cars i know of.
The entire DG lineup are UGLY as hell, and heat traps.

They have literally NOTHING outside the FTW3 line that they had a solid foothold in market for.
I know Nvidia undercut them, but a lot of us still PAID that extra 200-300 for a FTW3 and the plethora of sensors you got on a FTW3.
Kingpin series cards were almost always sold out, and lets not even talk about how much those were marked up.

Yes i know disrespect is serious, but if its the hand that feeds you, and keeps you afloat, unless its pushing your head down below the water to drown you, you need to take it.

In this case, i really see no future for eVGA as they do not have a single solid division that can keep them afloat.

 

[HurleyBird]

I'm guessing they're going to make a big push into motherboards, since they already have a foot in that particular door and it's the video card staff should have good skills overlap.

 

[aigomorla]

I'm guessing they're going to make a big push into motherboards, since they already have a foot in that particular door and it's the video card staff should have good skills overlap.

To be honest there motherboards are not that great.
They are overclocking boards, and not really "gamer" boards, or Enthusiast boards.
I have a few eVGA boards.
They are great overclockers, but missing a lot of stuff like you would find on a ASUS Rampage / STRIX Gigabyte Designware, or MSI GODLIKE series board.
eVGA boards are really stripped down, so they have less stuff which can fail, and have the shortest traces to get the most out of the power the PCB can handle.

These are not the boards a lot of people like. They like having 2 x USB3.2 headers, a Gazzilion USB ports, WIFI-6 onboard, and High Powered dedicated DAC onboard.

 

[UsandThem]

I have a strong inkling that if EVGA does decide to expand their motherboard lineup, it won't be a nForce model.

There's a lot of money to be made on motherboards nowadays. Slap some RGB on it, a few colorful pieces of plastic on it with spiffy scribblings on it, and a debug LED, and charge $600 - $800 for it.......Kidding not kidding.

If Biostar has been able still be in business after all of these years selling craptacular motherboards, EVGA can make it (at least in the U.S. / Europe markets).