NVIDIA's gaming division bleeds out, revenues down 45%......TweakTown

[JPB]

NVIDIA gaming revenues down 45% with lower-than-expected sales on GeForce RTX 2070 and RTX 2080

NVIDIA hasn't had the best time with its launch of the GeForce RTX series of graphics cards, which rode in on the tail end of the cryptocurrency market falling into a black hole. Well, things have just gotten worse.

The company has just reported its fourth quarter and fiscal 2019 earnings, with a gigantic 45% year-over-year loss in gaming revenue. NVIDIA's quarter is down 24% in total, with gaming down 45% but professional visualization up 15%, datacenter revenue up 12% and automotive revenues up 34%. OEM and IP revenues dropped hard as well, down 36% for the quarter.

NVIDIA founder and CEO Jensen Huang said that the GeForce RTX launch is a historic one, as it was the first time in NVIDIA's history that it launched with only high-end models first. Normally we see the two higher-end models released with the Ti variant coming later, but this time it launched with the RTX 2080 and RTX 2080 Ti out of the gate.

The mainstream GeForce RTX 2060 was not released at launch, as there were far too many GTX 1060s still on the market, something that was a symptom of the cryptocurrency mining explosion, and then implosion. Huang explained: "The inability to launch [the] 2060 was a big inhibitor for us, but we did so at CES.

Speaking of GTX 10 series inventory, NVIDIA has still got oversupply issues in the channel that won't be sorted until the end of March. NVIDIA also talked about macro-economic pressures in China as the country fights the Trump administration and its trade war.

The gaming segment of NVIDIA represents a rather large 43% of its total revenue, so a massive 45% year-over-year dip isn't something small... it's something pretty considerable for NVIDIA to experience. We should see things start to change this year, with increased GeForce sales from the RTX 2060 and RTX 2070 cards, as well as the soon-to-be-released GeForce GTX 16 series cards.

Read more: https://www.tweaktown.com/news/64876/nvidias-gaming-division-bleeds-revenues-down-45/index.html

 

[Jaskalas]

Lower than expected sales? Price / performance has not really moved in 3 years. In that regard we already have our cards with little reason to shell out another $350 minimum.

 

[NTMBK]

Bit of a ridiculous headline. Nvidia are still kicking AMD's arse in GPU sales, they're hardly "bleeding out". The crypto bubble has burst, it's not like gamers are dumping Nvidia for a rival.

 

[Arkaign]

Bit of a ridiculous headline. Nvidia are still kicking AMD's arse in GPU sales, they're hardly "bleeding out". The crypto bubble has burst, it's not like gamers are dumping Nvidia for a rival.

I agree that it is undeniably hyperbolic, yet there is more to it than that.

For people building all new PCs or replacing a very old card, RTX may make some sense. However, the lack of upward movement in $/perf leaves a massive number of 10xx and even some 9xx owners with nothing to buy in their price range worth the expense. Obviously this will vary person to person, but that's a significant factor here.

 

[Shmee]

Guys just a general warning here, this thread is about Nvidia revenue, and is not to be compared to AMD in this section. If you want to talk about competitors, keep it in the general GPU forums.

 

[guskline]

I think overall Nvidia will be fine. The cryptocurrency market affected both makers of cards. In addition, RTX is a bold step and it was taken. Perhaps the 1000 series of cards were and are so good that, as Arkaign points out, unless it's a new PC build or you have a 900 series card or even older, it's not likely to change. In addition with the 1660 and 1660x(?) just being released, let's wait abit to see the effect of those AND the 2060.