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.

 

[Ranulf]

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.

Because if the youtuber drama I've heard about him is true, he's got an ego and won't admit he is wrong on some things.

Also, the rumor mill (not MLID) now has news coming out about Intel's gpu situation next week.

 

[AnandThenMan]

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

Word is he insisted on hand delivering the dishes himself unfortunately Raj dropped the containers.

 

[dmoney1980]

This was a big surprise for me as well, as EVGA was my “go-to” brand for GPU’s. Still surprised by the move especially with their announcement around not pivoting to AMD; unless this is a posturing ploy on their part.
The GN video also implies that the CEO is looking to focus on family as the GPU division was taking a lot of his time and attention.

My thoughts are:
1- Pivot and sell motherboards, cases, fans,etc. Basically become Corsair while also expanding the integration of these products within their software.

2- Hire someone to take the reigns on the GPU division and sell AMD cards.

3- Do nothing, which is what they are implying they will do, and watch people leave or get laid off because they no longer have any work. Also watch Kingpin leave and sell his high-end cards through Asus or some other competitor. Ultimately becoming a much smaller company.

4- Sell the company (even worse than #3 in my opinion)

 

[DAPUNISHER]

I think if you were ever considering abandoning the market, now is the time to do it.



I disagree with GN about how EVGA needs to do something soon. Speculating that as time passes, say 4yrs, their name will be less valuable. As if they will descend into obscurity. Does he even pay attention to pop culture at all, in between leaning Mandarin? Nostalgia is a huge seller. EVGA could wait 5yrs for the dust to settle, to see where the dGPU market is at that point. Then if the conditions are right, jump back in, and the crowd would go wild.

 

[sham63]

This was a big surprise for me as well, as EVGA was my “go-to” brand for GPU’s. Still surprised by the move especially with their announcement around not pivoting to AMD; unless this is a posturing ploy on their part.
The GN video also implies that the CEO is looking to focus on family as the GPU division was taking a lot of his time and attention.

My thoughts are:
1- Pivot and sell motherboards, cases, fans,etc. Basically become Corsair while also expanding the integration of these products within their software.

2- Hire someone to take the reigns on the GPU division and sell AMD cards.

3- Do nothing, which is what they are implying they will do, and watch people leave or get laid off because they no longer have any work. Also watch Kingpin leave and sell his high-end cards through Asus or some other competitor. Ultimately becoming a much smaller company.

4- Sell the company (even worse than #3 in my opinion)

In reply to the bolded part, it could just be due to a non-compete clause for x amount of time.

 

[Schmide]

One logical catalyst? nVidia 4k cards will pull such a premium evga was unnecessary and relegated to plebeian status. Turn in your leather jacket immediately.

 

[DAPUNISHER]

One logical catalyst? nVidia 4k cards will pull such a premium evga was unnecessary and relegated to plebeian status. Turn in your leather jacket immediately.

I lol'd at the turn in the leather jacket reality show quip. But wait, isn't the mid and low end where they are making a profit?

 

[jamesdsimone]

Didn't Nvidia buy 3DFX? Is history repeating?

Not exactly but pretty close. If I remember correctly, 3DFX stopped selling to 3rd party vendors completely and sold their own brand video cards. They charged high prices because they were the only game in town. That's when Nvidia broke into the market and essentially put 3DFX out of business.

 

[DAPUNISHER]

If we want to really break out the tinfoil, what if the whole good guy CEO thing is a put on? And it turns out he was engaged in some, at the very least, unethical conduct during the crypto boom. For which he is currently being investigated.

 

[IEC]

Crypto winter #3 is here with the ETH switch to PoS. This is compounded by the end of nearly free money with the Fed committing to the Volcker path and raising FFR sequentially to an expected ~4.5% by next year. Market conditions for GPUs will get worse before they get better. Demand destruction will continue.

Frankly if there was a time to throw in the towel and preserve capital, eVGA timed it nearly perfectly. The bottom hasn't been reached yet but it will come soon™

 

[Fanatical Meat]

Hope they start making AMD cards then.

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

 

[moonbogg]

I think if you were ever considering abandoning the market, now is the time to do it.

View attachment 67709

I disagree with GN about how EVGA needs to do something soon. Speculating that as time passes, say 4yrs, their name will be less valuable. As if they will descend into obscurity. Does he even pay attention to pop culture at all, in between leaning Mandarin? Nostalgia is a huge seller. EVGA could wait 5yrs for the dust to settle, to see where the dGPU market is at that point. Then if the conditions are right, jump back in, and the crowd would go wild.

That's assuming Nvidia isn't like a straight-up mob boss. You think they'd just let EVGA "back in"? They'd probably be forced to pay for "security" from Nvidia's goons or something. You want my current thoughts on all this? It's not pretty and you won't like it, but it is what it is. I think Nvidia is suffering from a bout of good old fashioned success. Eventually, that one kid who actually becomes somebody has to leave their old friends behind. Their lives no longer mesh. Nvidia used the board partners to get where they are, but now it's time to leave them behind. They were necessary for a time, but are now losing their relevance.
The only way to make AIB lives' better is for Nvidia to sacrifice margin, and they won't do that. Why? Because Jensen is a grown up who is capable of making those hard decisions to do what's best for Nvidia AT ANY COST. In order to claw one's way to the top, they have to step on some heads or else be dragged back down. Crabs in a barrel my friend.

 

[VRAMdemon]

Wow! .... Sad day... EVGA was my go to until I deviated and just bought a Asus Strix 3090. Interesting they said that will no longer build Graphics cards from anybody "at this time". It's possible they may be waiting for the dust to settle, while they sell out their 30 series stock. They may be treading lightly not to piss Nvidia off while they still have to deal with them. I wouldn't be surprised if they went to the red team within the next year. I sure hope so.

Screw Nvidia! I have always used Nvidia and 3dfx GPU's until last week. Although I purchased a strix 3090 for my rig (installed and working well) I just ordered a XFX Speedster merc319 6900XT for 760.00 for the wife's computer. Should be here next week. This will be my first AMD GPU EVER!. And i'm excited about it..

 

[Captante]

Idk that choosing to give up "80% of the companies business" without having a solid plan-b in place was a wise decision... time will tell!





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)

As I mentioned previously in another thread, I loved EVGA at one point and would only buy Nvidia GPU's from them due to the excellent warranty and support.

The bad news is EVGA cards NEEDED that warranty/support... awhile back I made a list of all the "failures" I've personally had with their stuff and we're talking a 25% +/- failure-rate for their video cards!

They always made good and replaced them when they crapped the bad but still!

 

[mastertech01]

Idk that choosing to give up "80% of the companies business" without having a solid plan-b in place was a wise decision... time will tell!





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.

As I mentioned previously in another thread, I loved EVGA at one point and would only buy Nvidia GPU's from them due to the excellent warranty and support.

The bad news is EVGA cards NEEDED that warranty/support... awhile back I made a list of all the "failures" I've personally had with their stuff and we're talking a 25% +/- failure-rate for their cards!

They always made good and replaced them when they crapped the bad but still!

If its cheap enough, Ill deal with it. Ive never stressed one to death and never needed a warranty. In fact every one I have purchased in the past was used. But I am happy to buy a brand new one for a change at a used price.

 

[Indus]

WOW! End of an era.

Kinda think that "the merge" had something to do with this decision as well.

What is this merge you're talking about?

 

[Captante]

If its cheap enough, Ill deal with it. Ive never stressed one to death and never needed a warranty. In fact every one I have purchased in the past was used. But I am happy to buy a brand new one for a change at a used price.

My backup PC is currently running an EVGA GTX-1650 Super that's "grandfathered" to a lifetime warranty from my original 8800-GTX which suddenly died while gaming. (in a very well-cooled case with a 700 watt Corsair PSU)

First warranty replacement was a GTX-550ti which ALSO suddenly died while gaming (in a different PC), then they sent a GTX-950 to replace it but it had problems waking up properly so I ended with the 1650.

I've also had five low-end add-in EVGA cards fail in systems I built for my friends company mostly GT-710's because he needed dual monitor support. (was using onboard) I replaced them with the same card but an ASUS version and not so much as a hiccup since

 

[mastertech01]

My backup PC is currently running an EVGA GTX-1650 Super that's "grandfathered" to a lifetime warranty from my original 8800-GTX which suddenly died while gaming. (in a very well-cooled case with a 700 watt Corsair PSU)

First warranty replacement was a GTX-550ti which ALSO suddenly died while gaming (in a different PC), then they sent a GTX-950 to replace it but it had problems waking up properly so I ended with the 1650.

I've also had five low-end EVGA cards fail in systems I built for my friends company (mostly GT-710's) because he needed dual monitor support. I replaced them with the same card but an ASUS version and not so much as a hiccup since

Wow, and so many say EVGA is the creme of the crop for durability. Looks like they were nothing but trouble for you

 

[DAPUNISHER]

Idk that choosing to give up "80% of the companies business" without having a solid plan-b in place was a wise decision... time will tell!

When you hit the iceberg, do you hope you can bail fast enough to keep it afloat, or abandon ship? They are evidently losing $100s on every high end card they sell. That isn't a sustainable business model. Why stay in a biz with razor thin margins in good times, that is entering a huge downturn?

 

[Markfw]

I think if you were ever considering abandoning the market, now is the time to do it.

View attachment 67709

I disagree with GN about how EVGA needs to do something soon. Speculating that as time passes, say 4yrs, their name will be less valuable. As if they will descend into obscurity. Does he even pay attention to pop culture at all, in between leaning Mandarin? Nostalgia is a huge seller. EVGA could wait 5yrs for the dust to settle, to see where the dGPU market is at that point. Then if the conditions are right, jump back in, and the crowd would go wild.

Also, based on previous experience with them, if they have a socket AM5 motherboard, I may snatch it right away. And my last 10 PSU's have been with them.

 

[Captante]

Wow, and so many say EVGA is the creme of the crop for durability. Looks like they were nothing but trouble for you

Don't get me wrong.... I chose EVGA/Nvidia GPU's for 85% of the PC's I owned and/or built for others pretty much SINCE that 8800-GTX right up until I went with my current "Founders" card. (which has been flawless so far btw)

It's only fairly recently that I started having some misgivings about EVGA's quality-control after I went over the numbers on the cards I've bought from them over 14+ years. (it's not pretty)

Never an issue with the people or the customer service there though... EVGA was a model for the industry in that regard and they will be missed!

 

[mastertech01]

When you hit the iceberg, do you hope you can bail fast enough to keep it afloat, or abandon ship? They are evidently losing $100s on every high end card they sell. That isn't a sustainable business model. Why stay in a biz with razor thin margins in good times, that is entering a huge downturn?

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?

 

[DAPUNISHER]

My anecdotal experience owning a good number of their GPUs and PSUs. GPUs are rock solid, hit the advertised boost clocks, and have good coolers. PSUs are reliable and the systems they power, trouble free. I do clean PCs at least semi annually, and ensure good airflow and temps.

Don't buy a mouse from them though; man what a turd that thing was.

 

[Markfw]

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?

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. I just got 2 3090TI's, the top of the line version for $1100 each. They used to be $2500 or more just a few months ago.

 

[Captante]

When you hit the iceberg, do you hope you can bail fast enough to keep it afloat, or abandon ship? They are evidently losing $100s on every high end card they sell. That isn't a sustainable business model. Why stay in a biz with razor thin margins in good times, that is entering a huge downturn?

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.