One of the most important makers of Nvidia-based graphics cards won’t be making them anymore: EVGA has decided not to produce video cards with Nvidia’s next generation of GPUs, the RTX 40-series, reports analyst Jon Peddie (opens in new tab). The news is even bigger than that, though: Speaking to Gamers Nexus (opens in new tab), EVGA CEO Andrew Han said that the California-based company isn’t just skipping the next generation of Nvidia chips, but will “completely stop” making graphics cards going forward.
EVGA has been making graphics cards since it was founded in 1999, going all the way back to Nvidia’s RIVA TNT2 chips, but Han “wouldn’t even entertain the idea of working with Intel or AMD” to continue producing cards, says Gamers Nexus.
EVGA’s decision is at least partially the result of frustration over its treatment by Nvidia, according to both sources; it’s “about respect,” Gamers Nexus said. Graphics cards are reportedly 80% of EVGA’s current business, but that doesn’t mean it plans to close up shop because of its split with Nvidia—it told Gamers Nexus that it doesn’t even have layoffs planned. Once EVGA finishes selling off its stock of RTX 30-series cards, it will focus on its other products, which include motherboards, power supplies, and other PC components and peripherals.
The majority of EVGA’s revenue comes from sales of its Nvidia graphics cards right now, but Han told Gamers Nexus that the margin is incredibly thin, and that EVGA makes 300% more profit on power supplies. Even so, it isn’t entirely clear how EVGA will ditch the largest part of its business without laying off any employees, including staff members currently dedicated to graphics card engineering and support. “Attrition” is expected, says Gamers Nexus.
EVGA’s decision isn’t the sort of dispassionate business move one might expect: Han reportedly feels that Nvidia has been treating EVGA unfairly, and told Gamers Nexus that the decision to stop working with Nvidia was “easy,” because working with Nvidia was so hard.
According to Jon Peddie Research, “the relationship between EVGA and Nvidia changed from what EVGA considered a true partnership to [a] customer-seller arrangement whereby EVGA was no longer consulted on new product announcements and briefings, not featured at events, and not informed of price changes.” Peddie and Gamers Nexus also say that EVGA was frustrated by Nvidia undercutting its cards with its own Founders Editions.
EVGA’s direct communication on the topic reveals much less. In a statement posted by EVGA (opens in new tab) in its forums today, the company said that it will continue to support its existing graphics cards, but “will not carry the next generation graphics cards.”
“EVGA is committed to our customers and will continue to offer sales and support on the current lineup,” the company said. “Also, EVGA would like to say thank you to our great community for the many years of support and enthusiasm for EVGA graphics cards.”
Nvidia’s perspective on its relationship with EVGA isn’t precisely known. The company did send PC Gamer a statement about EVGA’s departure from the GeForce scene, but it’s as diplomatic as it gets.
“We’ve had a great partnership with EVGA over the years and will continue to support them on our current generation of products,” said an Nvidia representative. “We wish Andrew [Han] and our friends at EVGA all the best.”
I think it’s safe to assume that Nvidia might have more to say if it weren’t a public company with a $328B market cap, but that’s all we’re getting for now.
The hole left by EVGA’s exit from the Nvidia graphics card business will presumably be filled by other manufacturers, such as Gigabyte, ASUS, and Zotac. Nvidia recently teased something called “Project Beyond,” which we assume is related to its upcoming GeForce RTX 40-series GPUs. We expect to hear more this month.
The 30-minute Gamers Nexus video (opens in new tab) on EVGA’s departure from the graphics card business includes some further speculation on the company’s motivations, and more about Han’s plans for the future—the EVGA CEO told the channel that he does not plan to retire or sell the company.
This news is republished from another source. You can check the original article here