According to an exclusive revelation from Gamers Nexus, EVGA will no longer offer Nvidia graphics cards beyond the RTX 30 series. EVGA will completely quit producing graphics cards.
Nvidia’s relationship with one of its main board partners appears to have reached a breaking point. EVGA will not manufacture RTX 40 series GPUs, thereby abandoning the graphics card market. The decision, which might signal the end of EVGA, could focus more attention on the commercial connections between GPU producers and board partners.
According to an exclusive revelation from Gamers Nexus, EVGA will no longer offer Nvidia graphics cards beyond the RTX 30 series. The firm will continue to service current customers’ warranties while selling through its remaining inventory until the end of 2022.
One of the key reasons for the split is that Nvidia’s Founders Edition 30 series GPUs have undercut EVGA’s variations of those cards, especially given Nvidia’s recent price cuts to clear stock.
GPU manufacturers increased production in reaction to the crypto boom, but the crash and the more recent Ethereum merger have left them scrambling to sell unsold stock while competing with a flood of secondhand cards as they prepare to introduce a new generation. Board makers such as EVGA claim they can’t withstand these shocks as well as Nvidia, and that each RTX 3080 or RTX 3090 sold costs them hundreds of dollars.
EVGA will completely quit producing graphics cards
The board partner also criticizes Nvidia of failing to communicate about MSRP while releasing new GPUs. EVGA does not know the ultimate price it will charge for cards until Nvidia makes the proposed pricing public. In addition, the GPU manufacturer imposes pricing floors and ceilings, limiting EVGA’s ability to sell its versions based on how it customizes overclocking or cooling systems.
EVGA now claims to be Nvidia’s #1 approved partner in US and UK graphics card sales, and Nvidia GPUs account for around three-quarters of EVGA’s gross income. Furthermore, since breaking with Nvidia, the firm does not sell AMD or Intel cards and does not intend to do so in the future. The majority of the rest of EVGA’s business is made up of power supplies.
The decision to exit the GPU business did not occur suddenly or unexpectedly. EVGA claims they alerted Nvidia in April following multiple attempts to renegotiate the arrangement. EVGA CEO and founder Andrew Han stated that leaving Nvidia was a simple option, but working with the firm was difficult. Han described the decision as one of principle rather than money.
Han claims he has no plans to sell EVGA because he is concerned that investors would affect the company’s character and culture. The corporation also does not want to lay off anyone, but it appears that doing so is nearly unavoidable if it abandons its primary source of revenue.