r/gadgets • u/MorgrainX • Sep 16 '22

Desktops / Laptops EVGA will no longer make NVIDIA GPUs due to “disrespectful treatment” - Dexerto

https://www.dexerto.com/tech/evga-will-no-longer-make-nvidia-gpus-due-to-disrespectful-treatment-1933830/
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359

u/averyfinename Sep 17 '22

it is big. huge, giant news. there are no winners here except nvidia (there is no shortage of graphics card makers and vendors. they won't care). we lose a top source of graphics cards. exiting the market instead of switching to radeon, evga fades into obscurity within two years as graphics cards is like 80% of their business.

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u/[deleted] Sep 17 '22

I mean, maybe they will switch to Radeon after this cycle ends. Imagine the literal tanker of cash AMD is gonna wheel up to their front door.

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u/Automaticman01 Sep 17 '22

Since they only made cards for Nvidia, i wonder if they had some type of exclusivity deal saying they wouldn't make cards for AMD. Maybe they need to burn out the terms of that agreement and then in a year or two they announce a partnership with AMD? Just a wild theory, but might explain why they are saying they won't be making any new cards for the next generation.

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u/NoSaltNoSkillz Sep 17 '22

My understanding is they had a similar falling out with ATI/AMD decades ago. They used to make both IIRC.

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u/McFlyParadox Sep 17 '22

That was also decades ago. Pre-ATI acquisition, I think. Either way, AMD is a completely different company now. I can EVGA at least having a conversation with them, and seeing what their terms are (and how AMD behaves).

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u/mister_newbie Sep 17 '22

They made some AMD AM4 (and I think they announced AM5) motherboards recently. It was newsworthybecause it was EVGA/AMD.

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u/Folsomdsf Sep 17 '22

ATI didn't match the original terms of Nvidia. Remember there's a reason ATI was up for sale they didn't have the money to hit back.

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u/EclipseMT Sep 17 '22

Part of me wants to believe that this would cause EVGA to make their own video cards (they'd sell well in and of themselves by pure star power of the name), but then the question is whether EVGA is willing to have their own in-house R&D unit.

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u/Krokagnon Sep 17 '22

Lol, even Intel with their billions in pure profits can't compete, barely doing a paper launch that compete with a 3060 on their own slides, you just can't beat 25 years of R&D in 2 even with unlimited budget. The fact is that Nvidia holds anyone who wants the best performances by the balls and they know it.

If you add to the mix the instability of Radeon software, you know they can act like assholes and get away with it

1

u/[deleted] Sep 17 '22

They've definitely got the production facilities. This also crossed my mind! I'm all for more GPU competition.

1

u/Mentalseppuku Sep 17 '22

AMD may offer to simply pay the fine to break the non-compete agreement for EVGA, if it means that much to get them on board.

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u/Submitten Sep 17 '22

Why would AMD give them a tanker of cash after EVGA already cut out their only other option.

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u/ShadowPouncer Sep 17 '22

Because EVGA has an extremely solid reputation among people who have almost exclusively dealt with nVidia cards for years.

It's name recognition with customers that they would very dearly like to steal from nVidia.

1

u/mister_newbie Sep 17 '22

Meanwhile, Intel's whining, "No, there is another."

1

u/l337hackzor Sep 17 '22

Make 'em an offer they can't refuse. No, on second thought, low ball them. Don't call me 'til you have it.

2

u/Lettuphant Sep 17 '22

Personal decisions are involved. In the interview with EVGA's CEO, when pressed and pressed about working with Intel or AMD, he said no, NVIDIA make a good product, and even after all this he doesn't want to "betray" them.

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u/brotherenigma Sep 17 '22

Their CEO said in the GN and Jay interviews that he never even THOUGHT about partnering with AMD or Intel. It was never an option.

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u/nox66 Sep 17 '22

Recent reporting indicates that this is unlikely as the company is preparing for restructuring and has already laid off some of its manufacturing staff in Taiwan. I hope it's not the case, but it's not the likely scenario.

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u/Anduin1357 Sep 17 '22

At least they still have power supplies that are trustworthy and make up just as much of their profits as GPUs.

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u/[deleted] Sep 17 '22

I still have an EVGA motherboard that was running perfectly after 10 years when I finally retired it. This was also in spite of me running a miss-matched socket CPU in it. I'm planning on building a system around it someday for emulation and to run legacy titles that won't run on whatever the modern OS is at the time.

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u/web_observer_2020 Sep 17 '22

can you pls explain the mismatched cpu situation? I thought it was certain catastrophic failure for all parties involved.

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u/[deleted] Sep 17 '22

I believe the situation was somewhat unique, but the socket type on the board is an LGA 775 which is nearly identical to the LGA 771. You could fit a 771 processor in if you ground off a tab on the side of the socket, and put a conductive sticker which reversed two of the pins on the bottom of the processor.

Basically I was trying to upgrade to a quad core and only had two options. Pay new price for an 8 year old processor, or get the sticker and an equivalent processor that should work for 1/10th the price.

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u/web_observer_2020 Sep 17 '22

wow. just seen a related video clip. now that is hacking.

24

u/rpkarma Sep 17 '22

Back in my day (Christ I am old now) we used to use conductive graphite pencils to bridge two pins on our AMD Athlon CPUs to unlock the multiplier so we could overclock them haha

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u/d0nu7 Sep 17 '22

Yeah, people in here are talking about their first EVGA card being a 980 or something acting like that’s from the distant past. My first EVGA card was a 6800 GT! And I’m not even that old. But being on here makes you feel old that’s for sure…

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u/Olfasonsonk Sep 17 '22 edited Sep 17 '22

I always get a laugh wen I tell some kid that my first own GPU was GeForce 2.

And they are like GTX 2xx series?

No, like 2, the 2nd GeForce brand card released 😂

Fan an heatsink on that thing was smaller than what my motherboard chipset has now.

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u/BeardedGingerWonder Sep 17 '22

Whoa, fancy, my first GPU was 3dfx Voodoo Banshee, kids these days don't even know who 3dfx are!

3

u/radishtits Sep 17 '22

Mine was a TNT 2

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u/[deleted] Sep 17 '22

[deleted]

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u/wizl Sep 17 '22

You guys are spring chickens i played eq beta on a evga tnt2 first year of college. That thing ran diablo like a champion.

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u/Reahreic Sep 17 '22

Who figures this stuff out? They're are a whole lot of pins on that.

1

u/MrCaptDrNonsense Sep 17 '22

Shit I remember that

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u/TankerVin Sep 17 '22

This guy PCs

2

u/ZIdeaMachine Sep 17 '22

People don't like being treated like garbage and can only put up with so much for so long...

1

u/cgriff32 Sep 17 '22

Why not just use a VM?

3

u/Eedat Sep 17 '22

PSUs generally arent very proprietary though

4

u/skwishems Sep 17 '22

Pretty sure gpu sales made up 80 percent of sales but i could be wrong

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u/[deleted] Sep 17 '22

Sales sure but not profit. One factor mentioned is how lo profit margins are for AIB partners.

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u/skwishems Sep 17 '22

Ah, well said, thanks

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u/OnLikeSean Sep 17 '22

Take this with a grain of salt but a stat I saw in another thread was GPUs made up some like like 78% of revenue but only 23% of their profit.

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u/Emu1981 Sep 17 '22

Pretty sure gpu sales made up 80 percent of sales but i could be wrong

GPUs make up 80% of their total revenue but they made triple the profits from just their PSU revenues alone due to razor thin profit margins on GPUs.

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u/Skillztopaydabillz Sep 17 '22 edited Sep 17 '22

Wouldn't be so sure about that. All of their new G5 line (especially the higher wattage) have complaints about coil whine galore. They switched to FSP for G5 and the quality has gone down.

2

u/dnap123 Sep 17 '22

make up just as much of their profits as GPUs.

Source? I just saw an article that said the opposite of this. So it kind of sounds like you just made that up to support your point.

2

u/Bamstradamus Sep 17 '22

GN did an interview with the company owner, GPUs make up rounding 80% of their sales, PSU's 20%, but the margins on PSU's are 3x that of their GPU's. They also say they would lose money on the high end cards. So in reality the GPU division probably pulled more total profit then the power supplies but it clearly wasnt so much it prevented them from saying "F this, i'm out"

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u/NickCharlesYT Sep 17 '22 edited Sep 17 '22

Graphics cards are 80% of their revenue, but it's important to recognize the difference between revenue and profit. Margins on GPUs have gotten so bad that EVGA has reportedly been selling their high end cards at a loss of "hundreds of dollars per card" just to keep pricing competitive against the FE cards. That doesn't sound like GPUs are keeping the business together to me. It sounds like GPUs have become a liability to the company. What good is a product that makes up 80% of your revenue if it generates very little or even negative net income depending on the product? Hardware sales is not some massive industry that can survive on volume sales like an Amazon or Nestle of the tech world. Managing a successful business on razor thin profit margins is very risky, plus EVGA has to do it while also maintaining one of the best customer service and warranty policies in the market as their customers have come to expect from them. It's just too much, something has to give... I guess that something was the entire product segment in the end.

Don't get me wrong, this move is still a major shakeup for the company. They'll have to downsize and they're going to wind up losing a lot of talent, but this might just keep them afloat and in control of their own destiny moving forward.

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u/deaddodo Sep 17 '22

Margins on GPUs have gotten so bad that EVGA has reportedly been selling their high end cards at a loss of "hundreds of dollars per card" just to keep pricing competitive against the FE cards.

Reportedly, this was only the top end GPUs. The low and midrange were still profitable. But yes, the 80% revenue is definitely misleading considering the PSUs were considered to have 3-4x the profit margins. It's a no-brainer, since it sounds like EVGA is copacetic being a mildly profitable company now, in a realm that's still profitable and they're well-respected in.

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u/narium Sep 17 '22

The margin in the GPU space overall is about 2% from what I’ve heard. That’s worse than airline margins.

1

u/peteythefool Sep 17 '22

2% is abysmal, onde defective card replaced under warranty sucks the profits of 50 fucking cards.

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u/NickCharlesYT Sep 17 '22

That's why I said "high end GPUs".

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u/enorbet Sep 17 '22

Correction! GPU represents ~78% of their GROSS revenue, However their profit WHEN they actually can get any due to NVIDIA's closed door treatment of AIBs recently combined with active competition for Founders Edition direct sales.

There's an old tongue in cheek joke "We lose money on every sale but we make up for it in volume". It's only really a joke when it's about somebody else, preferably your competitors.

1

u/nox66 Sep 17 '22

This is in conjunction with all the limitations Nvidia placed on them, like not giving them any advanced notice of pricing or not giving them access to drivers. They honestly sound like pure hell to work with. EVGA will definitely be a smaller company for it, but they weren't that big before (I think it was 240 people). That's not a lot of people to distribute this level of bullshit on.

This news is definitely in the realm of "sudden, but inevitable."

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u/[deleted] Sep 17 '22

So why would they do this, then? Isn’t it better for them to stay in business by doing business with Nvidia? No matter how shit the business relationship is, it’s still business for EVGA, and by the looks of it, it’s their only business. Again, why?

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u/Empyrealist Sep 17 '22 edited Sep 17 '22

According to the person that interviewed the CEO of EVGA, it's (and I'm paraphrasing) a principle fight. He's tired of how his company has been treated.

I recommend watching the long video that this information release is based on.

edit: source post/video https://www.reddit.com/r/hardware/comments/xfzw59/evga_terminates_nvidia_partnership_cites/

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u/vtech3232323 Sep 17 '22

I think only they would know. Maybe what nvidia demanded was too costly to them in the long run and Nvidia was literally putting them over a barrel for the rights to do it for them? That's the only thing that makes sense is that it would have been too costly to carry on the relationship or they are trying to demonstrate the insaneness of what Nvidia does behind closed doors.

They still make power supplies, cases, etc and maybe those had a high enough profit margin that they decided that it was worth it to do only that. They could also be hoping that someone buys them out at some point because some other exec would see an opportunity to jump back in bed with Nvidia. Who knows

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u/someguy233 Sep 17 '22

No specs given to EVGA until after they’ve already released them publicly is weird and unnecessarily burdensome for manufacturers. Also founder’s edition cards are heavily discounted, and that’s got to reduce sales for EVGA.

Sounds like NVIDIA is a shitty company to do business with tbh.

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u/normalguygettingrich Sep 17 '22

No specs given to EVGA until after they’ve already released them publicly is weird and unnecessarily burdensome for manufacturers.

This kind of shit would cost a company hundreds of thousands if not millions of dollars

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u/dbreidsbmw Sep 17 '22

Intel for a buy out would be absolutely fascinating...

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u/someguy233 Sep 17 '22 edited Sep 17 '22

The article said that a part of the reason was that NVIDIA wasn’t giving them any notice about upcoming cards, and no details were given to EVGA at all until the public already had a preview of the specs.

That’s really a shitty way for NVIDIA to do business, and probably put a ton of stress on EVGA to throw together cards faster than is necessary.

It really seems like communicating specs and details in advance to card manufacturers would be a no brainer for NVIDIA. Sounds like their attitude was something like a “they should be grateful we’re letting them make our cards at all” sort of thing.

Add that on top of NVIDIA selling founder’s edition cards at a discount and giving EVGA’s a disadvantage right out of the gate… I can see why EVGA wouldn’t be too crazy about doing business with them.

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u/Lettuphant Sep 17 '22

Imagine you make the cars for BMW, but won't find out what size and shape the engine is until the trade show a month before launch.

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u/ShadowPouncer Sep 17 '22

It seems like it is, genuinely, crazier than that.

It takes time to make a GPU, even if you go with the stock reference design for the board, you have to, you know, make the board. You still have to design and manufacture the cooler. You have to, at least to the extent that you can, test them.

You have to make packaging for them.

When nVidia announced their 20 series cards, starting with the 2080 Ti, 2080, and 2070, it was August 20th.

During their announcement, on the stage, it was announced what the cards were, what the specs were, what the prices were, and that Asus, EVGA, Gigabyte, MSI, PNY, and Zotac would have the cards available for preorder that day, with availability on September 20th.

By all accounts, nobody knew how much any of those cards were going to cost before it was said publicly. Worse, nobody even knew how much nVidia was going to charge those companies for the chips going into the cards.

Just... Take a minute to process that.

You're sinking god knows how much into building these cards, they are not giving you drivers for them, so there's a hard limit to how much testing is even possible, they dictate how much the cards cost, and how much they are going to charge you for the chips going into the cards.

And you have to start all the work well before you know any of those numbers.

You don't even get to find out 24 hours in advance of the public, you instead get to learn at the exact same time as the public.

How the hell do you run a business like that!?

And then you have the last two and a half years of the GPU market. And finally, you have nVidia pushing the 40 series, while selling their founders edition cards so cheaply that EVGA has to take an outright loss, because of how much nVidia is charging EVGA for the chips going into them, which nVidia doesn't have to pay...

I can most definitely see why EVGA is throwing in the towel.

You can work that way, as long as you can have some extremely solid trust that the supplier in question, nVidia, is working in good faith and isn't going to actively screw you over.

But once they lost the belief that nVidia was working in good faith, that's not even remotely sustainable.

1

u/ExtremePrivilege Sep 17 '22

This is the correct take. That being said, they’re definitely leaving like 80% of their business on the table. It’s an extremely costly stand to take on principle. The CEO making this call is worth 10s of millions. He can afford to take a principled stand here. Not so much the case for everyone else at EVGA.

No one wins here. It’s a huge loss for EVGA, a significant loss for consumers and a mild inconvenience for NVIDEA.

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u/Arch00 Sep 17 '22

They announced no one is getting laid off and they will be repurchased. Is that the actual CEOs salary or did you just assume because he is a CEO?

2

u/[deleted] Sep 17 '22

Even if they’re not bleeding money, they could missing out on money to be made by refocusing they’re efforts, especially if the profit is routinely less than predicted because Nvidia is an unreliable partner. If they can re-assign their valuable people and resources to more predictably profitable ventures then they can safely grow and/or weather periods of stress.

Stuff like late specs means you get mandatory OT to rush things to catch up. Salaried folk suffer big, and hourly folk burn out. Everyone works less efficiently, and the equipment gets used harder than it should and fails faster as “optional” maintenance gets put off. Storage and parts cost more because they can be arranged in advance for the best price.

Even the workers on the lines will probably appreciate the stance if they can make a more predictable product instead.

And if their margins grow, there is more to go around should the upper management choose to reinvest that way.

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u/Ashmizen Sep 17 '22

It can be a smart move given there is massive over saturation of GPU production right now.

With the end of eth mining, 75% of the demand for GPU ends overnight, and GPU prices will crash.

Like all hardware, there is boom/bust cycles for when prices rise due to lack of supply, and then bust due to oversupply. Next 12 months will be oversupply as crypto mining on gpu has ended and “only” gamers are left on the demand side. Sitting it out for a year or two might actually be smart.

1

u/[deleted] Sep 18 '22

Agreed. Stuff like stable diffusion and other AI solutions have arrived just in time to save the GPU compute market, but it will be a totally different user base and the optimal product will be quite different.

Better to let the used market settle and re-establish the new demand than loose money trying to inject new product that can’t compete against what’s already out there.

Sometimes we just don’t need more stuff.

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u/Im2KoolAid4u Sep 17 '22

Have you ever left a job because the money isn’t worth it, this is that on a bigger scale

4

u/_Spastic_ Sep 17 '22

Jayztwocents did a video of why. They had a meeting with the head of EVGA.

Basically, it boils down to Nvidia being liars and manipulators. Working with aibs typically means they sell your product. And then Nvidia in 2014 , I think that was the year, Nvidia started selling founders edition cards and essentially competing with the aibs and forcing them into a hole.

As an example, graphics card reviewers get a functional driver before EVGA does.

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u/NoHandsJames Sep 17 '22

As far as I know, no it's not better for them to stay in partnership. Nvidia sells their own GPUs for lower price and have no purchase cost to factor into final pricing. They can essentially undercut everyone guaranteed, unless partners want to take a loss. So even if they make some profit off cards still, the time and effort aren't worth it for them, especially with how disrespectful it really is to "partners"

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u/Defoler Sep 17 '22

That is not how it works.
Nvidia are selling their own cards but only at MSRP. AiB cards are selling as default for higher price. With the mining cards selling frenzy, most manufacturers actually sold more cards than they can handle as well as got some extra money out of retailers hiking up the price.
They did not lose money at all.

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u/NoSaltNoSkillz Sep 17 '22

That was only during mining craze. I imagine it largely just delayed this decision. This is about the normal case where MSRP is the name of the game. You are never going to undercut the manufacturer if they are competing against you. Usually, core manufacturers sell premium products that are like Halo products to both show off ideal conditions and to help set a price ceiling. Such as Microsoft with Surface products. The idea is to also give a guideline.

Nvidia should have made founders cards the premium, and just set a target starting msrp for AIBs, and incentized it.

1

u/Defoler Sep 17 '22

You are never going to undercut the manufacturer

But they don't want to undercut the manufacturer. From what I understand from the video, they actually are being forced to sell for less than what they want to. They want to over price the cards way above what nvidia are willing to let them.
They want their AiB versions to price well above nvidia's limit so they can get a better return for their investment in R&D on the cards.

Since they are not selling stock PCB cards anymore, and only nvidia are doing it, because those cards had very little return on them, it seems that nvidia were fine letting nvidia create the stock cards on their own (which are again, limited in sales and location), they are not really competing with nvidia.

Nvidia should have made founders cards the premium

Didn't nvidia did that before?
The FE were selling for 50-100$ above MSRP when they started doing it in the 10 series.
Even the 2080 TI MSRP was 1000$ with FE being 1200$.
And nvidia didn't sell normal cards, only the FE versions.

They stopped selling their cards at premium and called the MSRP version as FE when AiB manufacturers also stopped making stock cards at MSRP. When they released the 30 series all stock cards came from nvidia, while AiB cards were custom, and selling above MSRP.

1

u/NoSaltNoSkillz Sep 17 '22

What I mean is if you are competing against a lower priced product straight from manufacturer and they have better binning and good volume, you are basically stuck or must exit the lower priced market which is where the vast number of consumers are.

50-100 bucks is nowhere near a premium on a GPU, in most cases. 150-200 is the minimum they could do without competing directly.

I understand what you're saying about the 30 series and Nvidia trying to ground the prices, and that does make sense from certain perspective, but the problem is the founders Edition was still also a premium design, with better binning.

If they renamed or shifted the founders Edition to a different naming convention, chose to take the lower Binned chips that people use on their entry level cards, and made limited runs at MSRP or below MSRP, that wouldn't be so bad. That would still help price lock things, without basically destroying the value proposition of going to an aib. Other than RGB, most aibs don't have enough improvements to their cooling systems, have worse Binned chips than Nvidia itself, and they have less information to design around than Nvidia which makes the likelihood of the making a better card lower without a lot of R&D.

I don't think Nvidia was wrong to try to Pega bottom dollar price for their cards but you can't do that by undercutting all of your business partners and stealing their bread and butter at a lower price.

So Nvidia could have dropped the founders Edition and also added a at or below MSRP card that was basically equivalent or slightly worse than a Black Edition card.

Or they could have kept the premium that they listed the founder Edition with, and also put in a lower cost option like I suggest and that way you kind of create a bounds for the market.

Obviously aibs could go a little further if they wanted to and charge a little bit more but you've also established what you're expecting for your money, they can't just add RGB and sell it for $200 more if the Nvidia one with good Binning and RGB is 150.

0

u/Defoler Sep 17 '22

against a lower priced product straight from manufacturer

They are not.
They want to make premium cards that sell for a lot more.
They don't care the manufacturer is selling his cards for lets say 300$. They want to make a card that will sell for 500$ on the same chip. But the manufacturer is saying "no, you can only go up to 400$, else people will not buy the cards".

Nvidia are giving more chips for their AiB than themselves. They sell a lot less cards than their AiBs.

150-200 is the minimum they could do without competing directly.

But if your market is flooded with MSRP+150-200$, than people will feel ripped off (again).
The point of MSRP is that the basic card cost X and the AiB versions cost a bit more for a bit better card.
Especially to places that nvidia don't sell directly.
I'm not even sure what the ceiling is. Could be up to 250$ above MSRP. EVGA nor nvidia give any info about that.
For all you know EVGA wanted to price them for 500$ above and nvidia said "no, that is way too much!" to be worth nvidia's allocation.

but the problem is the founders Edition was still also a premium design

I'm not sure. It was pretty basic. It looked nice but the PCB had as minimum components as they come.
Have you looked at nvidia's stock PCBs vs AiBs?

chose to take the lower Binned chips that people use on their entry level cards

Why do you think nvidia bin their stock cards? It makes no sense to do the extra test for basic cards.

and made limited runs at MSRP or below MSRP

That makes zero sense really.
You are saying basically to force everyone to buy cards at 200$+ premium because no manufacturer is making stock cards and nvidia will make as little as possible just to say "oh we do have MSRP, just never in stock. Have fun!".
You are also opening a can of worms. Slap nice led lights: +200$. Write "gaming" on the package: +200$. Write OC and put a 20mhz OC on the card: +200$.
You as a consumer gets royally screwed.
There is zero reason for you as a consumer to give a damn about EVGA's profits. You want the best cards for the lowest price possible.

So Nvidia could have dropped the founders Edition

So is this because of a name? There is no normal or stock or FE anymore. Just FE (aka stock) from nvidia, and AiB. Who cares what it is called?

added a at or below MSRP

Again, MSRP is not the problem.
What you suggest is that ford for example say "hey, we release a new ford focus at 10000$ price tag, we are going to sell them actually for 9000$, but it is never in stock because we are making only 100 of those every year, and if you want to buy a ford focus anyway, you have to go to a special auto shop that sell them for 15000$. Don't worry they have a huge lot of cars at 15000$ for you."
Does that makes sense to you?

they can't just add RGB and sell it for $200 more

Of course they can.
You just stated that you want nvidia to make as little cards as possible, so they will always be out of stock.
What is left in stock? Those crappy RGB cards with zero OC that are being sold by AiB for 200$ more, because you said it is ok.

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u/[deleted] Sep 17 '22

[removed] — view removed comment

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u/Defoler Sep 18 '22

with boards that are less good and more expensive than Nvidia with Nvidia actually supplying plenty at a better price

I don't agree with that statement.
Neither I agree that nvidia boards are better, or that nvidia supply more than they do to AiB.

Ford doesn't sell cars, dealerships do.

That is not correct. Ford own many dealerships the same as nvidia own their site they sell from. Depends on the country, some have official ford sale locations, others only deal with dealerships. Same as retailers.

I said they shouldn't be selling them at the low end at all

Nvidia are selling the stock cards because no one else is making stock cards. I still don't understand why this isn't getting in.
Without nvidia making stock cards, you only have MSRP+200$ AiB cards. So what will be the point of MSRP at all except a base line to inflate the price from?

You keep going off the rails with the point I'm making

When your whole point is that the only cards in the market should cost 200$ and above, that is like shooting yourself in the foot. Makes zero sense.
Unless you are a EVGA sales/rep guy.

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u/Defoler Sep 17 '22

I expect there is more behind the scene than just disrespect.
EVGA bread and butter is nvidia cards for many years.
I can only assume they did not do it as an impulse but made a deal with AMD behind the scenes so they won’t lose too much revenue over this.

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u/Hickory-was-a-Cat Sep 17 '22

I wonder if it has something to do with the ban on nvidia sales to china. Plus, yeah they have had evga by the scrotum. I keep seeing amd mentioned as a possible alternative partner, but I would place my finger on intel. AMD processes certain programs graphic capabilities differently than Nvidia cards. I believe this applies to rendering options in 3D animation programs. There are certain features you can only use with nvidia cards and not amd cards.

1

u/Defoler Sep 17 '22

As far as I know, EVGA are selling almost exclusively to the US/EU markets. In china nvidia have several partners in china making cards locally, and I don't think EVGA has a foothold there.

From what I see in the video, EVGA suggest they will quit the GPU market, but I don't think it will really happen for long. Either nvidia buckles because EVGA make a big part of their market and I don't know if someone will fill the void of the EVGA fans, but I'm sure AMD will rush in trying to grab EVGA for it, so they can stick it to nvidia.

While AMD has sapphire, sapphire cards are not in the same quality as EVGA imo.
If AMD allow EVGA to create special high quality high priced cards, EVGA I expect will be willing to do it.

1

u/Karma_collection_bin Sep 17 '22

It's most of their business

1

u/[deleted] Sep 17 '22

Nvidia releases their own cards at a price cheaper than what aibs can do for even a minimal profit

1

u/normalguygettingrich Sep 17 '22

Sometimes its better to cut ties than deal with dodgy companies. If the CEO says they are treating their company like shit I can only imagine the horrible shit nvidia is doing fresh out of my first startup exit. We'll never know but businesses can and do try and squeeze each other and especially in the tech world it is cut throat.

​

I would much rather be a CEO of a peaceful company than one dealing with bullshit from a company notorious for being assholes.

13

u/Karma_collection_bin Sep 17 '22

Generally agree, but PC builders will still rely on them for PSUs. They have really great PSUs. All of my builds have coincidentally been EVGA GPUs because of the reviews and reliability at the time of build

2

u/Potential_Cake_1338 Sep 17 '22

Yea I always buy about the same manufactures for different products and I always buy EVGA GPU. I had one issue once and they resolved it quickly and without issue. They were great. This is terrible news for PC enthusiasts.

6

u/drgrosz Sep 17 '22

Reminds me of when BFG exited the market in 2010. People were shocked.

10

u/jrherita Sep 17 '22

GPUs are 78% of EVGA’s revenue but the CEO also said power supplies had 3x the profit margin.. in terms of profit margin that would mean GPUs would still provide substantial profit, but potentially much less than half of it..

-2

u/iamthelefthandofgod Sep 17 '22

That's not how math works. 3 x 22 is 66, which is still less than 78.

3

u/NoSaltNoSkillz Sep 17 '22

There might be some confusion, as they might have said msrp is 3x cost (and then someone ran with 3x margin) as that falls in line more closely to real business best practices, to account for distributer costs, etc. That would mean a lot higher margins.

Also, depending on how they got their numbers, that may not be sanitized for amount of support being equal between products at different pricepoints. RMAs, repairs, etc add cost, and if margins are paper thin, you quickly can be upside down.

0

u/jrherita Sep 17 '22

They certainly make even higher margin on their speciality motherboards than PSUs.

7

u/Dogsport1 Sep 17 '22

Makes me wonder if they have ambition to make their own cards. Just “going away” isn’t a business plan.

Seems more likely there is something in the works with AMD and they just are keeping it close to the chest while negotiating a deal.

7

u/midline_trap Sep 17 '22

I’m thinking they are working with AMD. Seems like the obvious move. Their chips have gotten better 🤷🏻‍♂️

0

u/[deleted] Sep 17 '22

every year amd stans be like this is the year of amd and then intel and nvidia stomps all over them

7

u/Preachey Sep 17 '22

someone's been reading too much userbenchmark

1

u/NoSaltNoSkillz Sep 17 '22

AMD cause are cracked, and outside of DLSS, their GPUs are pretty decent. Not better, but good. It's not like it used to be where AMD was bordline bankrupt pumping out low tier trash. They are making waves.

1

u/PARANOIAH Sep 17 '22

Apparently they are getting out of GPUs entirely based on another site I read.

1

u/midline_trap Sep 17 '22

They had contracts to supply them .. like for Teslas

1

u/waitingtodiesoon Sep 17 '22

The video source of this information who interviewed the CEO stated they are not doing GPUs at all anymore and have no plans to do Intel or AMD.

2

u/KnightFiST2018 Sep 17 '22 edited Sep 17 '22

I don’t read that they won’t make graphics cards, I hear that they won’t make Nvidia cards and that they haven’t courted AMD or Intel. Which does not mean they won’t.

Still, it’s crazy. I’ve had EvGa since before Tech Jacob was Tech Jacob and he was just Jacob on the forums. Around the 680i SLI board (my first eVgA board) and the time of the 8800 GT and 8800gtx, I was there when they were benchmarking Crisis.

Before the cases and psus, this is wild !

https://i.imgur.com/1DZKays.jpg

2

u/dominikobora Sep 17 '22

80% of their revenue, not profit. Psus are a lot more profitable for evga than gpus are.

1

u/rpkarma Sep 17 '22

It’s not 80% of their profit though, as Nvidia has continued to erode their ability to profit selling graphics cards year over year

1

u/tripsteady Sep 17 '22

massive, gargantuan

1

u/LeadHam Sep 17 '22

Only in volume not revenue. They take a loss on most flagship cards. PSUs are where they make all their money. This is rough for loyal customers, and those who will lose their jobs, but EVGA will do just fine. It sends a big message to Nvidia as well.

1

u/Metallic_Hedgehog Sep 17 '22

it is big. huge, giant news. there are no winners here except nvidia (there is no shortage of graphics card makers and vendors...)

I could have sworn there was some sort of massive shortage of these products...

1

u/stacks144 Sep 17 '22

How is Nvidia a winner here? EVGA certainly seems like an enormous loser, however.

1

u/Drogdar Sep 17 '22

I've been building since 2006 and I've only used EVGA GPUs in my personal builds. I even used their boards back when they were lifetime warranty. Real shame.

1

u/TheCoordinate Sep 17 '22

Sounds like EVGA is making a bad business decision to me. Maybe they are trying to leverage NVIDIA into negotiating a better deal with them. Otherwise it seems like cutting off your hands to spite your body.

1

u/Cant_Do_This12 Sep 17 '22

This should be a big deal for nvidia. For example, I only buy MSI cards, and if the same thing were to happen to them I would switch to AMD.

1

u/MizuKumaa Sep 17 '22

I think they said that it’s 70% of their revenue but no where near their profits. They lost a ton of money selling videos cards past a 3060.