EVGA withdraws from the graphics card market due to conflict

EVGA withdraws from the graphics card market due to conflict with NVIDIA

EVGA, rightly considered one of NVIDIA’s oldest and leading partners, has decided to make some very serious changes. It will no longer do business with NVIDIA and will no longer release its graphics cards under its own brand. In other words, there will be no more GeForce RTX 40-series gaming graphics cards, as well as subsequent series from EVGA.

    Image source: EVGA

Image source: EVGA

Leading tech bloggers JayZTwoCents and GamersNexus reported on the split between EVGA and NVIDIA. They spoke to EVGA CEO Andrew Han and discussed the issues that led to this decision. A note on this as well released Analysis agency Jon Peddie Research.

“We will no longer sit on your lap [главы NVIDIA] Jensen Huang, so I don’t want people speculating about what’s going on and why we’re gone. EVGA decided not to release the next generation [графических ускорителей GeForce]»– Tech blogger Steve Burke of YouTube channel GamersNexus quotes Khan as saying.

Significantly, Khan decided to meet up with two of the biggest and most popular tech bloggers and explain the situation to them. Incidentally, he even banned them until a certain point in time from publishing videos on their YouTube channels in which they explain the heart of the matter in their own words to an audience of millions. According to Burke, most of his team didn’t know what the video was about until the video was actually released. And JayZTwoCents initially assumed that when he met the head of EVGA, he could reveal exclusive news about the brand’s possible collaboration with AMD Radeon. EVGA is already partnering with AMD and releasing motherboards for them, so expanding the partnership further and starting production of Radeon graphics cards could be a logical step. However, much more shocking news awaited the blogger: EVGA decided to stop producing new graphics cards.

Portal Tom’s Hardware contacted NVIDIA representatives to comment on the situation.

“Over the years we have had an excellent partnership with EVGA. We will continue to support them with our current generation of products. We wish Andrew and our friends at EVGA all the best.”said Bryan Del Rizzo, director of global communications for GeForce at NVIDIA.

It is known that EVGA will continue to provide support for the GeForce RTX 30 series graphics cards it has released until stocks of accelerators in the company’s warehouses are exhausted. The same information was confirmed on the official EVGA forum. The manufacturer does not plan to release AMD or Intel accelerators instead of NVIDIA graphics cards. He decided to focus on producing other products. Recall that in addition to graphics cards, the company has also produced and continues to produce motherboards, power supplies and various gaming peripherals. Additionally, EVGA has held back some inventory of its GeForce RTX 30-series graphics accelerators to allow for warranty replacements should current customers require it.

Speaking to JayZTwoCents and GamersNexus, Khan also revealed that he has no intention of selling EVGA. According to GamersNexus’ Steve Burke, EVGA informed NVIDIA management of its decision back in April of this year. Analysts from Jon Peddie Research write that NVIDIA received a notification in July. It looks like EVGA produced some GeForce RTX 40-series samples, but then development was halted.

Nothing is currently known about what will happen to the EVGA employees who have worked in the brand’s graphics department. EVGA itself is not a very big company. Speaking to GamersNexus, Khan promised to take care of the staff. However, it is not yet clear what exactly EVGA engineers will do after the graphics department is dissolved. According to Tom’s Hardware, EVGA’s Taiwan office laid off some employees this summer.

What led to the end of the partnership between EVGA and NVIDIA? A direct answer to this question is not given in either video. But there are indications that NVIDIA may have “strangled” EVGA’s graphics business. Jensen Huang’s company is sensitive to the disclosure of information about its future products, their equipment and recommended cost. NVIDIA’s paranoia reaches such a level that many of its partners, even such important partners as EVGA, receive all the information at the time of the official presentation of the new product, as JayZTwoCents says in his video. With this approach, it is very difficult for NVIDIA partners to create their business plans.

Another reason could be that NVIDIA literally started to compete with its partners by selling reference versions of GeForce RTX 30 series graphics accelerators in Founders Edition. Previously, NVIDIA sold reference versions of its graphics cards only in the first few months after the launch of a new generation of accelerators. At this point, the company’s partners ramped up production, and then NVIDIA removed the Founders Edition versions from store shelves. Things were different with the GeForce RTX 3000 series. The company sells reference versions of accelerators throughout their lifecycle while aggressively pricing them.

    From a consumer perspective, why buy a $1,400 GeForce RTX 3090 Ti from EVGA when you can get the reference version for $300 less?

Consumers: Why buy a $1,400 GeForce RTX 3090 Ti from EVGA when you can buy the reference version for $300 less?

If we look at NVIDIA as a manufacturer and supplier of graphics cards, then unlike its partners, it does not have to worry much about the level of profit from the actual sale of accelerators. The main profit brings her the sale of graphics processors. At the same time, in a conversation with JayZTwoCents, the EVGA boss mentioned that even at a price of $1,400, the GeForce RTX 3090 Ti card is sold at a loss.

In its 23 years of existence, EVGA has dedicated 22 of those years to an exclusive partnership with NVIDIA, earning a reputation as the maker of some of the most powerful GeForce accelerators. The very name of the company stands for Extreme Video Graphics Adapter. Now the presence of the abbreviation VGA in it looks strange, since the company no longer produces video cards. According to Jon Peddie Research, EVGA’s solution “will cause a huge hole in NVIDIA graphics card sales in North America”, as it accounts for 40% of the GeForce accelerator supply. Even fans of the brand from Western Europe will not be happy about such news.

About the author

Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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