EVGA terminates relationship with NVIDIA

[Gibbo]

I'm kind of curious @Gibbo, you've worked with EVGA. What do you think about this news? Not sure if you can comment on this but what about the allegations that EVGA has made whats your opinion on them?

Not for me to comment but I pulled focus from EVGA products some years ago. So it does not impact OcUK at all.

GPUs is a blood bath business for all partners and is why partners do pull out, it’s a lot of work with a high risk factor.

Abit made a similar decision many years ago with motherboards, it became a blood bath and decreasing margins so they made the decision to pull out and never returned.

I’ve done this for 20 plus years so could see the 3000 series was due some cuts and as such kept my stocks minimal but at same time NVIDIA have worked closely with ourselves and supported us.

We are in a great position on 3000 series and for whatever comes next, shame about EVGA but they weee not a focus partner for OcUK so it has no impact on our business or operations but it is a shame to see another big name drop out and that their will be more staff cuts there no doubt.

 

[hyperseven]

I've finished watching the video and something doesn't add up. There is clearly information we are not being told.

You don't just close down a huge chunk of your business because you just want to spend more time with your family, especially while burning the bridge on the way out. I believe EVGA is run by a smart man (has he been running it since its founding?) and the job of the CEO is to steer the ship which means planning for the future. I just can't believe that they don't have a plan in place.
The timing is also very sus. 4 days from the launch of the next generation of cards. Really?

Could they be playing a game of russian roulette with Nvidia? Have they already got a partnership set up with AMD but need to keep it hush hush for legal reasons. All I know is something ain't adding up.

Is there enough of the AMD pie to go around with their current market share? Would AMD risk alienating their current AIBs by adding another into the mix?

 

[kindai]

So whos next in line on the "we actually give you a decent warranty service"?

EVGA's advance RMA was just so frikkin good. Any other suppliers offering something similar?

 

[Stu999]

He keeps saying they’re “taking a neutral stance” but then don’t give Nvidia a right of reply and say that some of the accusations seem true.

 

[Orcvader]

Wasn't expecting this to happen, I knew the 3000 series was expensive to make and hard to compete with the founders price, but to completely pull out is crazy. Curious if other GPU partners may consider doing the same seeing it may get worse with the 4000 series.

 

[Trick]

I can't watch GN anymore, the guy is just a whiney drama king.

I bet GamersNexus is devastated about that.

 

[dlockers]

I bet GamersNexus is devastated about that.

As devastated as Nvidia is about being binned by EVGA I guess

 

[MissChief]

When Nvidia started making their own cards and then choosing exclusive partners in the markets the AIB's were always going to struggle, especially as the coolers on the FE's turned out to be decent.

 

[Journey]

When Nvidia started making their own cards and then choosing exclusive partners in the markets the AIB's were always going to struggle, especially as the coolers on the FE's turned out to be decent.

It is pretty clear that they want to control more of the market for themselves, for more margin, what with ever increasing GPU development costs and increasing supply side from the likes of Samsung/TSMC means less of the pie for Nvidia, especially if they end up with real competition in the market places from AMD/Intel.

It does beg the question, how long before there is only Nvidia FE, and maybe ROG to chose from, next generation, the one after that - maybe they'll just go full Apple and be the only vendor of their own hardware.

 

[MissChief]

It is pretty clear that they want to control more of the market for themselves, for more margin, what with ever increasing GPU development costs and increasing supply side from the likes of Samsung/TSMC means less of the pie for Nvidia, especially if they end up with real competition in the market places from AMD/Intel.

It does beg the question, how long before there is only Nvidia FE, and maybe ROG to chose from, next generation, the one after that - maybe they'll just go full Apple and be the only vendor of their own hardware.

And then cut warranty down to the legal minimum. if there's no competition then what unique selling points do you need? None.

 

[Tired9]

Same response.

 

[Tired9]

And then cut warranty down to the legal minimum. if there's no competition then what unique selling points do you need? None.

Perhaps nVidia can be a company that sells cards straight from the gate rather than have AIB's at all?
Any issues just do what Microsoft did and give us a new XBOX 360 when the red ring of death happens.

 

[Journey]

And then cut warranty down to the legal minimum. if there's no competition then what unique selling points do you need? None.

Yep, and it will open up the market for the FE cards to just have aftermarket air coolers fitted/supplied, like people do now with water blocks etc. Only difference is you'll be stuck with the power delivery and board design being totally fixed.

 

[Iron Man]

Why does Nvidia have AIB partners anyway? Makes more sense just to make the cards themselves like they do with the founders edition.

 

[Tired9]

Why does Nvidia have AIB partners anyway? Makes more sense just to make the cards themselves like they do with the founders edition.

AMD don't truly need them either since their cooler on RX 6000 was stellar.

 

[Journey]

Why does Nvidia have AIB partners anyway? Makes more sense just to make the cards themselves like they do with the founders edition.

Its historical, we are moving away from custom cards, where AIB's had much more control over the end products. So it all likelihood that will be the future of the graphics card industry, from nearly all the main suppliers Nvidia/AMD/intel alike, with retail style cards, and the only third party manufacturers being OEM's like Lenovo and Dell, built by Foxconn or Pegatron etc.

 

[Andromeda1983]

Seems Jensen has the impression that board partners are leeches who don't do any of the work. The only reason they don't just make the cards themselves and completely cut out the board partners is that the board partners have access to more markets and better distribution than Nvidia so basically if Nvidia could do that themselves they would likely dump the board partners and just make the cards themselves. The apple approach basically.....

 

[Chuk_Chuk]

According to Jay he mentioned that the Evga 3090 Ti even at $1399 Evga mentioned they were apparently making a loss while the founders version was $1099, and I doubt Nvidia is making a loss on that as they don't have to buy the chips.

No business can compete by being massively undercut.

This raises some questions. How are the others getting along? Were EVGA stuggling because of the quality of their boards? This then raises questions about the quality of other AIBs. How many corners are they cutting to keep it profitable?

Is there enough of the AMD pie to go around with their current market share? Would AMD risk alienating their current AIBs by adding another into the mix?

If AMD are competitve with Nvidia, then it is possible that they could grow their market which could present space for EVGA. But then the AMD exclusive AIBs who have stuck with AMD during the darkest days, may want that for themselves.

 

[Tired9]

This raises some questions. How are the others getting along? Were EVGA stuggling because of the quality of their boards? This then raises questions about the quality of other AIBs. How many corners are they cutting to keep it profitable?


If AMD are competitve with Nvidia, then it is possible that they could grow their market which could present space for EVGA. But then the AMD exclusive AIBs who have stuck with AMD during the darkest days, may want that for themselves.

EVGA were a bad choice for a couple of gens of nVidia GPU TBH. Only based on hardware faults.

 

[BigBANGtheory]

Abit made a similar decision many years ago with motherboards, it became a blood bath and decreasing margins so they made the decision to pull out and never returned.

The problem to put it bluntly Gibbo is Nvidia margins.

Where I have some sympathy is EVGA buying too much stock from Nvidia and not being able to turn a profit on it, kind of feels like EVGA made some good $$$ and is now banking it and turning the tap off rather than taking the hit. Should the AIBs and Nvidia jointly take a share in the hit, the risk??? yes imho they should if they are partners, what this shows in Nvidia pushing risk onto the AIBs and washing their grubby hands of it.