EVGA Leaves The GPU Market Following a Breakdown With Long-Term Partner Nvidia

EVGA, a leading manufacturer of graphics cards for PC gaming, has announced that it will cease production of all PC graphics hardware at the end of this current hardware generation. The company cited a breakdown in relations with Nvidia as the reason behind their decision, which was made despite the company having worked together for a long time. In a statement released to the media, EVGA confirmed that it would no longer be producing graphics cards for either Nvidia, Intel, or AMD.

Of course, the disagreement appears mostly about cash, with EVGA’s major gripe being that GPU tech titan Nvidia is supposedly discounting third-party graphic cards and its ‘Founders Edition’ graphic cards. Since Nvidia manufactures such graphic cards and eliminates the ‘middle men of the third-party graphic card manufacturers like EVGA, Asus, or Gigabyte, it can put up a discounted price and thereby achieve a market status that puts all other card manufacturers in an untenable position. According to the assertion, it is often hard for EVGA to deliver some 30-series GPU variants at a profit due to the scale of the discount Nvidia has achieved with its in-house graphic cards.

This decision also shocks Nvidia, whose EVGA represents a big part of worldwide sales. But being a giant in the industry, they can always fill in that gap with other partners. This is a huge decision to make for EVGA. Even though the company manufactures other products, it is reported that around 70% or more of the annual revenue comes from the department of graphics cards. The big twist in this scenario is that EVGA is not only cutting all ties with Nvidia, but it plans to leave the graphics card market altogether. For some reason, the company is not interested in developing GPUs using AMD or Intel architecture; hence it is withdrawing from the market. Despite this fact and that many employees will no longer be essential to the business, top-level EVGA officials insist they have no plans to remove workers.

All of this occurs at a very intriguing and challenging period in the computer hardware industry, particularly concerning GPUs. The GPU market is now in the throes of a challenging transition period, one that the recent cryptocurrency bust has exacerbated. The demand for graphic cards has skyrocketed in recent years and during the epidemic, mainly due to gaming gear needs and the crypto frenzy. This resulted in skyrocketing pricing and limited supply, forcing GPU makers to step up their performance and increase output. Then, as expected, the bottom dropped out.

This unexpected withdrawal of EVGA, a leading manufacturer of graphic cards makes conditions much worse than it already is. EVGA will no longer be involved whatever occurs with the new 40 series cards. The corporation will proceed to sell throughout its current inventory of the 30-series graphic cards while holding back specific units to guarantee that it can meet warranty and maintenance needs for graphic cards that have already been sold. However, after the supply is depleted, the business intends to stop producing graphic cards. We can wave goodbye to EVGA-manufactured graphic cards as of now.

Reference: https://www.vg247.com/nvidia-evga-divorce-gpu-40-series-geforce-cards-discontinued