PC graphics card manufacturer EVGA has announced that it will stop making all GPU hardware at the end of this current hardware generation, following a full-scale fight with the GPU tech titan nvidia.
In a move that is likely to have significant repercussions in the PC gaming hardware industry, EVGA is not only ditching Nvidia, but also has no plans to move on to creating GPUs with AMD or Intel, Nvidia’s two main rivals. The company, known for making high-quality cards at reasonable prices, will exit the GPU business altogether.
The news was delivered today by a small number of specialist hardware outlets in several detailed reports, the best of which can be found in the brilliant Gamers Nexus on YouTube (and embedded below). These outlets were reported directly by EVGA, which confirmed that despite building prototypes and test cards based on Nvidia’s upcoming 40-series GPUs, it would not continue with those products, or any other Nvidia products.
The statement was confirmed on the official website, but only in a short forum post from an EVGA Product Manager. “EVGA will not carry next-generation graphics cards,” the statement offers, before reiterating that support for current-generation products will continue.
The dispute appears to be primarily about money, of course, with EVGA’s main complaint being that Nvidia is allegedly undermining third-party cards with its own ‘Founders Edition’ cards. Because Nvidia makes those GPUs and essentially cuts out the ‘middle man’ from third-party manufacturers like EVGA, Gigabyte or Asus, it can charge less and as a result gain a market position that puts other manufacturers in an impossible situation. . The claim is that in many cases it is impossible for EVGA to sell certain 30-series GPU models at a profit, such is the size of the cut Nvidia can make with its internal cards.
Speaking to GamersNexus, EVGA CEO Andrew Han described the decision as a matter of principle rather than strictly financial, continuing with claims that Nvidia’s communication and treatment of its partners had been poor.
For EVGA, this is an important decision. Although EVGA makes other products, including power supplies, GamersNexus reports that more than 70% of the company’s revenue comes from its GPU department, a market the company is now looking to exit entirely. This could also be painful for Nvidia, as EVGA accounts for a significant percentage of Nvidia’s GPU sales worldwide, but that gap can simply be filled by other partners.
For whatever reason, EVGA isn’t interested in designing AMD or Intel-powered GPUs, so it’s backing away. Despite this, and the number of staff who will no longer have brand-relevant skills, EVGA’s senior executives say they have no intention of cutting staff.
All of this comes at a particularly interesting and difficult time in the PC hardware market, especially around GPUs. In recent years and during the pandemic, the demand for GPUs has skyrocketed thanks to a combination of demand for gaming hardware and the cryptocurrency craze. This led to sky-high prices and low availability, causing GPU manufacturers to up their game and ramp up production. Then, as expected, the bottom fell out.
As cryptocurrency values plummeted, miners sold their old cards and demand plummeted, prompting many hardware companies to take a dip and be left with huge excess inventory. A shortage turned into a surplus practically overnight. Nvidia ended up missing its revenue projections by a huge amount. This is the position we find ourselves in now, on the cusp of a new generation in the form of the 40 series, but with a glut of 30 series products clogging up the supply chain.
Whatever happens to the 40 series, EVGA will now not be a part of it. The company will continue to sell its existing inventory of Series 30 cards and will retain some units to ensure it can meet warranty and repair requirements for cards it has already sold. However, once stock runs out, the company plans not to make any more GPUs.