The company still has a successful and well-regarded power supply business, as well as a more niche presence in high-end motherboards and gaming peripherals. To be sure, according to GN and JPR, the company has not completely closed the door on partnering with another GPU vendor, but they also aren’t actively pursing the matter right now.Īnd while this marks a massive cut to EVGA’s business – Gamers Nexus reports that video cards represent 80% of EVGA’s revenue – EVGA is not going out of business. Instead, EVGA is going to be out of the video card market for an indefinite period of time. So for the moment, at least, this is not going to be a case of EVGA switching allegiances to AMD or Intel.
Perhaps equally notable, EVGA has also made it clear that they are not immediately partnering with a competing GPU vendor, either. According to Gamers Nexus, EVGA expects to run out of current-generation cards for retail by the end of the year, with the company setting aside a remainder of those cards as spares to honor warranty obligations.ĮVGA RTX 3090 Ti FTW3: A Money-Losing Product
#EVGA SERIES#
This means that EVGA will not be selling video cards based on NVIDIA’s next generation of GPUs, and that EVGA is ramping down production of existing GeForce RTX 30 series cards. And while consumers are benefitting from this in the short term via cheaper video cards, taking a loss of hundreds of dollars per video card is not sustainable – nor is it a viable business practice to begin with.Īs a result of these factors (and undoubtedly more tales known only between EVGA and NVIDIA) EVGA has opted to part ways from NVIDIA. This, in turn, has put EVGA in a position where they are taking a loss on selling high-end NVIDIA cards, a significant shift from what are normally the highest margin products sold by video card vendors. Jon Peddie Research: AIB Gross Margins v. Meanwhile, as NVIDIA has slowly ramped up its own efforts to directly sell its Founders Edition (reference) video cards in Best Buy and other retailers, AIBs like EVGA have been put in a position of directly competing with their partner-turned-supplier. Most notably, AIB margins have been slowly shrinking over the past couple of decades, with JPR publishing that gross margins at the AIB partners have fallen from 25% in 2000 to 10% in 2015, and finally an estimated 5% this year. These are both great pieces and as I’m not going to simply rehash them point by point, I’d encourage readers looking for a first-hand recounting of the briefing to check them out.Īs laid out in both pieces, EVGA’s parting from NVIDIA comes as the company’s relationship with NVIDIA has, according to EVGA, soured over the years. Meanwhile, in a briefing attended by Jon Peddie Research and Gamers Nexus, EVGA’s CEO (and founder) Andrew Han laid out some further details about the transition.
Also, EVGA would like to say thank you to our great community for the many years of support and enthusiasm for EVGA graphics cards.
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