The announcement came last night via videos posted by Gamernexus and JayztwoCents, both invited to let EVGA know about this announcement. The information has been kept secret until now… There will be no EVGA RTX 40 or future generations of GPUs. EVGA is ending its GPU business. While it seems out of the question at the moment, maybe we can hope that EVGA returns to the GPU market one day. Maybe next to Intel or AMD…?
For those who are not yet familiar with this iconic brand. Founded in 1999, EVGA offered graphics cards equipped exclusively with NVIDIA chips. A collaboration that lasted until the break 23 years later.
EVGA ends partnership with NVIDIA
“EVGA has ended its relationship with NVIDIA. EVGA will no longer produce graphics cards and cites a strained relationship with NVIDIA as the main cause (other reasons have been cited but downplayed). EVGA is not currently considering working with AMD or Intel. For example, the company will very soon reduce its workforce by completely withdrawing from the graphics card market.
Customers will still be covered by EVGA warranties, but the manufacturer will no longer produce RTX GPUs or other graphics cards. EVGA had already produced about 20”EVT samples (Technical validation test) EVGA RTX 4090 FTW3 cards, but the latter will not go into production and all ongoing projects have been halted – including the KINGPIN cards. »
Significant implications for the market and structure of EVGA
So here’s the quote from Gamer Nexus regarding EVGA’s total shutdown of operations in the company graphics cards. During the GamerNexus and Evga interview, some key points about this cessation of activity in this area were discussed.
- EVGA to suspend all graphics card production activities
- Current consumers are still covered by the EVGA warranty
- EVGA has generated inventory to compensate for returns under warranty
- EVGA expects to be without RTX 30 by the end of 2022
- EVGA continues its activities in other areas
- EVGA does not sell the graphics card
- EVGA is not launching in a new product category
- NVIDIA was notified in April 2022
- There will be no collaboration with Intel or AMD on the GPU front
- The technical samples RTX 40s were ready, but there will be no production
- Workers assigned to GPUs are reassigned to other roles.
Suffice it to say that EVGA’s employees are the most regrettable, with 80% of revenue linked to the sale of graphics cards, EVGA is losing its largest income. And the human resources allocated to 80% of the disappearing sales cannot all be reallocated to other sectors. Workers could therefore be redistributed into the power supply or motherboard sectors to design future products.
Tensions between NVIDIA and EVGA would have worsened the situation
How did EVGA get here? The answer would be on NVIDIA’s side.
According to GN, EVGA is tired of Nvidia imposing so many conditions, with a threshold price and floor price, when they themselves announce the suggested retail price at the last minute. Under these circumstances, AIBs such as EVGA develop cards without having a perfect estimate of the price at which they can be sold. What can be seen on the high-end models. In addition, NVIDIA now operates its own end-to-end chain, from production to direct sales, and competes directly with AIBs with slaughter prices.
So we end up with margins for BIAs shortened by the price of the chip. Add to that the RMA stuff on the RTX 30s, and the result was that EVGA lost money on the sale of its graphics cards. So here are the conditions that push EVGA to end more than twenty years of graphics card production. An expertise that unfortunately cannot be put at the service of Intel or AMD for their GPUs.
The next question is, “What will become of Vince Kingpin Lucido?” This last work for EVGA for over 10 years in the overclocking section. And especially on GPUs. Without the graphics cards it will be left with EVGA motherboards, much lower workload with little sales volume. Work on motherboards should be more prominent in the future when it comes to products that offer better margins and are more predictable, we’re still waiting for a return from Vince who doesn’t really know where it will take him for a while.
Now it remains to be seen whether the NVIDA GPU allocations will be redistributed or simply revised downwards globally. The need for graphics cards is much lower since the effects of the ” proof of work from Ethereum. We also think about the industry behind the production of EVGA graphics cards, be it cooling, PCBs or even water blocks.
Needless to say, the entire editorial staff and community were shocked by this news. EVGA has always been my favorite brand. And today we will no longer be able to enjoy the Kingpin cards and their battles against the GALAX HOF. A very sad forfeited win for GALAX…
A page turns, thank you EVGA for providing such good graphics cards.