EVGA's reportedly terminating its relationship with Nvidia
Could EVGA make AMD or Intel graphics cards in the future?
Published: 16th September 2022 | Source: Gamers Nexus |
EVGA ends its relationship with Nvidia as their relationship sours
- Update - EVGA has officially confirmed that they will not be carrying next-generation graphics cards from Nvidia.
According to an exclusive report from Gamers Nexus, EVGA has terminated its relationship with Nvidia, deciding not to produce RTX 40 series graphics cards over the company's souring relationship with Nvidia, and the constraints that they had to work under.
While EVGA has allegedly created RTX 4090 FTW3 graphics cards samples, the company had decided not to create RTX 40 series GPUs. With their relationship with Nvidia severed, EVGA has effectively exited the GPU market, and they have no plans to create Intel or AMD graphics cards at this time.
Nvidia graphics cards represent around 80% of EVGA's revenue, a factor that makes their decision to break their ties with Nvidia a make or break decision for the company. EVGA does not plan to return to Nvidia with their launch of their post RTX 40 series products, they are done working with Nvidia.
Below is what Gamers Nexus had to say in the description of their video regarding EVGA's decision to break ties with Nvidia.
EVGA has terminated its relationship with NVIDIA. EVGA will no longer be manufacturing video cards of any type, citing a souring relationship with NVIDIA as the cause (among other reasons that were minimized). EVGA will not be exploring relationships with AMD or Intel at this time, and the company will be downsizing imminently as it exits the video card market. Customers will still be covered by EVGA policies, but EVGA will no longer make RTX or other video cards. The company already made ~20 EVT samples of EVGA RTX 4090 FTW3 cards, but will not be moving to production and has killed all active projects pertaining to cards -- including KINGPIN cards.
EVGA has confirmed to Gamers Nexus that they have withheld inventory to help support the company's warranties. The company expects to run out of RTX 30 series products by the end of 2022, and the company currently has no plans to expand into other categories. EVGA representative has also stated that they plan to stay in business and that the company is not for sale.
Employees at EVGA are reportedly being re-allocated to different sections of the company, though it is probable that a lot of EVGA high talent staff will move to EVGA's competitors.
When discussing the company's decision to break ties with Nvidia, Gamers Nexus has stated that "it's about respect" and that their decision to stop making Nvidia products is a principled decision and not a financial one. EVGA has worked with Nvidia for 20 years, making their decision to break ties with Nvidia a big deal for both companies. EVGA is effectively walking away from a large proportion of its revenue, and Nvidia will lose one of their most well known exclusive partners.
There are many reasons why EVGA has decided to move away from Nvidia, including Nvidia's lack of disclosure of critical information about their products until their official reveal, the undercutting of their board partners with Founders Edition products, and low margins for high-end products.
Many consider EVGA to be one of Nvidia's top partners, and that makes EVGA's departure from the GPU market bad news for consumers. That said, EVGA wanted to take a stand against Nvidia, and EVGA should be respected for that.
You can join the discussion on EVGA's reported move away from Nvidia on the OC3D Forums.
Most Recent Comments
Secondly, the article links to the image itself and no actual article.Quote
It's interesting what Steve mentioned about AMD or Intel being willing to increase profit margins for EVGA if they were to have them be their partner. But of course if AMD were to do that, surely Powercolor and Sapphire are gonna come knocking for their increase too.Quote
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Originally Posted by AngryGoldfish
It's interesting what Steve mentioned about AMD or Intel being willing to increase profit margins for EVGA if they were to have them be their partner. But of course if AMD were to do that, surely Powercolor and Sapphire are gonna come knocking for their increase too.
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Originally Posted by Dawelio
True, although I think that EVGA has a lot bigger reputation to stand on in comparison to Powercolor and Sapphire, although I could be wrong on that.
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Powercolor IMO are not as good as Sapphire. I would say that Sapphire are one of AMDs biggest and most loyal GPU makers.
EVGA have made their living by charging high premium prices for sometimes premium products.
Their biggest problem has been Nvidia. The 3090 FE for example was by far the most premium 3090 you could buy made out of the most premium materials. The coolers cost Nvidia $150 to make per cooler. The issue comes with them trumping all of their AIBs in quality and price. Nvidia charge 60%. So that's 60% higher than the cost of production per GPU *or* core and memory to their AIBPs.
So the prices Nvidia quoted on their retail 30 series cards was absolutely impossible for any of their board partners to match. Not even by Gigabyte who made all plastic cards with plastic back plates. Given the choice which would you buy? A FE at RRP or a pos plastic impostor for more?
This all started with Fermi. Before that Nvidia never made any cards and when they did they sold the FE to the board partners who had to do nothing more than put a sticker on them, make boxes and sell them. Manli produced all of those cards.
That said I don't believe EVGA. There's a thousand reasons why they are doing this. One that comes to mind? The owner is nearly at retirement age. He would have made a mint selling to miners and perhaps now is the time to pull out, knowing what is about to come given it happened a few years ago.
As for how Nvidia treated them? They do it to everyone. EVGA imo are dumb for ever thinking they'd gain any loyalty. BFG did the same and went bust replacing all of the crappy 200 series storage heaters whilst Nvidia hung them out to dry by delaying the crap out of Fermi and then leaving their AIBPs with nothing to do but RMA for over 9 months.
They should have stopped brown nosing Intel and Nvidia years ago and made AMD stuff. Their own snobbery has hurt them in the end.Quote
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This is what happens when your supplier basically sets up camp and only charges their core and memory margin on a GPU, setting the price in stone. Your cards cost as much to produce as their RRP.
AMD been doing that s**t too.Quote