EVGA falls out with Nvidia – and stops making graphics cards

PC graphics card manufacturer EVGA has announced that it will end production of all GPU hardware at the end of this current hardware generation, following a large-scale dispute with GPU technology titan Nvidia.

In a move that is likely to have significant ramifications across the PC gaming hardware industry, EVGA isn’t just ditching Nvidia — it also has no plans to switch to making GPUs with either AMD or Intel, Nvidia’s two key rivals. The company, known for making high-quality cards at affordable prices, will instead exit the GPU business entirely.

The news was delivered today by a small number of hardware specialist media outlets in various detailed reports, the best of which can be found on the brilliant GamersNexus on YouTube (and embedded below). Those outlets were directly informed by EVGA, which confirmed that despite building prototypes and test cards based on Nvidia’s upcoming 40-series GPUs, it would not be moving forward with those products — or any other Nvidia products.

The statement was confirmed on the official website, but only in a short forum post by an EVGA product manager. “EVGA will not support next-generation graphics cards,” the statement says, but support for current-generation products will continue.

The bottom line seems to be primarily about money, of course, with EVGA’s main complaint being that Nvidia is allegedly undercutting third-party cards with its own ‘Founders Edition’ cards. Because Nvidia makes these GPUs and essentially cuts out the “middleman” of third-party manufacturers such as 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 actually sell certain 30-series GPU models at a profit, given the size of the undercutting Nvidia is able to perform with its internal cards.

Speaking to GamersNexus, EVGA CEO Andrew Han described the decision as a matter of principle rather than strictly economics – and went on to elaborate on claims that communication and treatment from Nvidia to its partners had been poor.

For EVGA, this is an important decision. Although EVGA makes other products, including power supplies, GamersNexus reports that over 70% of the company’s revenue comes from the GPU division – a market the company is now looking to exit entirely. This could also be painful for Nvidia, as EVGA represents a significant percentage of Nvidia GPU sales worldwide – but that gap could easily be filled by other partners.

For whatever reason, EVGA isn’t interested in developing GPUs with AMD or Intel technology – and so it’s walking away. Despite this, and despite how many employees will no longer have relevant expertise for the brand, top-level EVGA 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. Over the past couple of years and throughout the pandemic, demand for GPUs has skyrocketed thanks to a combination of demand for gaming hardware and the crypto craze. This led to sky-high prices and low availability – prompting GPU manufacturers to step up their game and ramp up production. Then, predictably, the bottom fell out.

As cryptocurrency values ​​fell, miners sold off their old cards and demand fell – causing many hardware companies to take a bath, sitting on huge excess inventory. A shortage turned into a surplus practically overnight. Nvidia ended up missing its revenue forecasts by a huge amount. This is the position we are in now, on the brink of a new generation in the form of the 40 series, but with redundant 30 series products clogging up the supply chain.

Whatever happens with the 40 series, EVGA will now not be a part of it. The company will continue to sell through its existing inventory of 30-series cards, holding back some units to ensure it can meet warranty and repair requirements for cards it has already sold. Once the stock runs out, the company plans to make no more GPUs.

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