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Manufacturer EVGA has stated that it is dissolving its collaboration with Nvidia and departing the GPU industry ahead of Nvidia’s GTC 2022 keynote next week, where the firm is expected to introduce its new 40-series consumer GPUs.
The significant business move, which EVGA announced on its forums, has been revealed in a detailed report by Gamers Nexus, who met directly with EVGA CEO Andrew Han to obtain the details of the split. Nvidia, according to Han, has been tough to work with for some time.
EVGA, like all other GPU board partners, is only informed of new product pricing when it is revealed to everyone on stage, making planning difficult when launches occur soon after. Nvidia also maintains tight control over GPU price, limiting partners’ ability to differentiate themselves in a competitive market.
Furthermore, Han criticized Nvidia for consistently undercutting its partners with its Founders Edition cards, which sell identical products at discounted pricing that partners are not permitted to match. This has resulted in enormous losses for EVGA, with Han claiming that sales of RTX 3080 and higher GPUs cost the business hundreds of dollars.
Gamers Nexus responded to some of the charges by claiming that EVGA has a tendency of generating more stock than it can sell, resulting in losses when a new generation is ready for sale. This happened during the 20-series and the current 30-series, with the recent cryptocurrency crisis and abolition of Ethereum mining exacerbating the problem.
According to Han, the CEO wants to spend more time with his family and believes that the way Nvidia does business is no longer worth the time he needs to spend away from them. However, this places the corporation in an unusual position. Many people rely on EVGA’s continued operation, but without GPU manufacture, it has lost 80% of its whole revenue stream.
Han has stated that there are no plans to sell the company or produce GPUs for AMD or Intel, but that employment losses will be minor. It’s tough to see how both are true, with the company now likely looking for a new purpose as it continues to manufacture power supplies and other PC accessories. EVGA will continue to sell its remaining 30-series inventory, which it expects to exhaust by the end of 2022. Reserve stock is kept on hand to satisfy any RMA requests, and warranties will be fulfilled for as long as they are valid.
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