EVGA fed up with Nvidia, will stop manufacturing video cards

[Dakota Tebaldi]

In a surprise development, it's been revealed that EVGA has walked away from its partnership with Nvidia, citing a hostile business relationship with the company. EVGA will sell its current stock of 30-series GeForce cards until they run out, and will continue to support cards that have been bought, but it will not be selling any of the upcoming 40-series card - or any other video card, for that matter. EVGA has said it tends to remain in business, but considering that selling Nvidia graphics cards was easily around 80 percent of its revenue, speculation is rampant as to what exactly EVGA's business will look like going forward.

EVGA said the decision to part ways was made unilaterally, over what it says is disrespectful and unfair treatment by Nvidia in regards to things like hard pricing requirements that allow Nvidia to undercut vendors with its own directly-sold "Founder Edition" cards without any recourse by the vendors, for example.

Nvidia owns the vast majority of the market share for consumer graphics cards, and it has been known to use this position to make excessive demands and exercise an inordinate amount of control over vendors in order to, among other reasons, enforce a competitive advantage over rival video card maker AMD.

 

[GoblinCampFollower]

...but considering that selling Nvidia graphics cards was easily around 80 percent of its revenue....

But what percentage of their net profit? This is potentially a great (if difficult) decision if NVIDIA really was becoming impossible to work with.

 

[Dakota Tebaldi]

That seems to be the thrust of EVGA's argument - that making Nvidia cards isn't profitable and hasn't been for some time.

I like the idea of EVGA standing up to a giant like this; so if anyone wants to support them I would point out to anyone who doesn't know it yet that EVGA makes a whole range of power supplies and I have been very happy with the most recent one I bought.

 

[GoblinCampFollower]

That seems to be the thrust of EVGA's argument - that making Nvidia cards isn't profitable and hasn't been for some time.

I like the idea of EVGA standing up to a giant like this; so if anyone wants to support them I would point out to anyone who doesn't know it yet that EVGA makes a whole range of power supplies and I have been very happy with the most recent one I bought.

Standing up to a big, but abusive customer can be hard.... but is often the right decision. I know of businesses that just go under because they won't give up on a terrible customer.

 

[Jolene Benoir]

I had an EVGA NVidia card for a very long time, well over a decade. It never failed me.

 

[Summer Haas]

I didn't watch the video but I have a strong suspicion that now that Etherium went to PoS, all the profit in selling GPUs direct to miners is gone. If they are forced to sell entirely to resellers, the middle man takes all the profit.

 

[Soen Eber]

I didn't watch the video but I have a strong suspicion that now that Etherium went to PoS, all the profit in selling GPUs direct to miners is gone. If they are forced to sell entirely to resellers, the middle man takes all the profit.

I haven't been following it but that makes a lot of sense.