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NVIDIA Moves Into Direct Retail Sales of Video Cards

Kyle 'Gordon' Bennett has nearly has a big an axe to grind against Nvidia as Charlie Demerjian does. I don’t know when it started but it flared up a couple of years ago when [H] published a scaving article on the then up and coming GTS250 and accused Nvidia of trying to deceive buyers. The very next day the story was published on some financial news sites which upset Nvidia and [H] were put on the Nvidia’s black list.

If it weren’t for Kyle’s quality reviews I would almost be inclined to lump him and Charlie into the same frame as those types of journalists that have been rubbed the wrong way by Nvidia.


I believe that was when Nvidia tried to cut them, Anand and a couple of others out from reviewing the GTS250 because they were not bought and paid for like (in my opinion) TweakTown etc, so they were in fact trying to deceive consumers.

Are you saying that, because Nvidia wronged and upset Kyle, that he is now considered an un-credible/trustworthy source?
If he wasn't trustworthy the chances are you wouldn't be reading his reviews as most people would be put him in the same category as TT.

There are other reviewers that have been 'shut out' besides Kyle that you could describe as also having an axe to grind.
In fact almost everyone who has direct dealings with Nvidia seems to have an axe to grind, reviewers, M$, Sony and even their partners.
 
Kyle is a trust worthy source but since the GTS 250 incident it’s clear he’s pretty miffed with Nvidia and the tone of some of his articles when talking about Nvidia are Charlie D like. That still doesn’t make him untrustworthy and on the contrary [H] is one the first places I go to read reviews on new products and for record I don’t dismiss anything Charlie has to say out of hand either as he has been proven right more often then not.

I also go along with Kyle’s assessment that Nvidia have been trying to fool customers into buying new products which are simple reworked older models and as a clued up consumer Nvidia’s business practices over the last few years have turned me right of them. The 8800GT was the last Nvidia card I bought and until Nvidia redeem themselves and change there ways I won’t be buying any more of their products.
 
As said, the GTS250 review was a complete sham, basically sites were only given cards if they agreed to use 4 specific benchmarks and a 5th that you could "choose yourself" out of 3 or 3 other specific games, you could only bench it with specific settings, against specific cards and quote specific prices etc, etc.

Lots of sites had a rant about Nvidia's strong arming sites into it.

As for retail, its supposedly been semi confirmed(not that semi) that to sell Nvidia cards in the USA Nvidia has been demanding detailed information on marketing, sales numbers, advertising campaigns, numbers of who sells what to which distro's and its only been doing this for a year or so, then they jump into the retail side?

BFG screwed entirely by Nvidia and pushed out and Nvidia move in to up profits marginally in the stores BFG had their strongest ties too? Also it would now seem that its Newegg and Bestbuy, the two biggest sellers in the US market in retail and internet sales, I can't imagine thats doing anything but heavily angering the remaining exclusive partners.

I've not seen, are they standard 450/460's? I imagine it would pee off partners less if it was cut down 460/450's they otherwise wouldn't be able to persuade partners to sell because there are no margins on them, if its full blown normal identical 460/450's. Well, every Nvidia card sold is stealing a sale from their AIB customers, and as they've squeezed the hell out of ALL of their AIB's for 3 years, I can't see how they can be happy.

I don't think its as desparate a move as 3DFX made, but its similar reasoning, maybe with a little more forethought, ignoring the fact Nvidia branded cards are on sale before the Nvidia staff knows about it :p The simple answer is Nvidia made a 100mil loss and is facing increasing costs and lowering sales, dramatically, a quarter of a billion turn around in the last quarter, well I pointed out at the time that those kind of numbers are bad, very very very bad.

The only way I think Nvidia can prevent EVGA, Gigabyte, Asus,Zotac and the main guys from being hurt by the move is if they kill off XFX and a couple of the other smaller boys completely and ONLY sell what the other guys don't want to order. But considering the move to the biggest retail and biggest internet seller as prefered partners, I can't see them being "small time" in this situation.

As for Made by ATi cards, largely almost all cards are made in one or two places at launch and are made by ATi prefered partners and shipped out for others to put stickers on, thats been standard for years, the occasional ATI oem card is usually just excess stock without branding on from Sapphire/powercolor anyway.

The difference is, starting up selling cards out of the blue when it takes sales away from their partners = really really bad. If they always made them and always sold 10% of gpu's themselves, then Asus/EVGA/etc never had those sales to begin with, different situation.
 
This sounds desperate from NVidia. It's not a good idea to rub your remaining partners up the wrong way when they had to deal with allot of pain waiting for the 400 series to finally arrive.

I have a feeling that this, if it's permenant - which I think it might be dispite what NVidia themselves say, will end up biting them on the arse.
 
^^^
I like how Nvidia inocently describe what they are doing as "just a test", and not permanent.
Which is code for the following...

a) If it doesn't work out, "It was just a test folks, that's all, wasn't supposed to be permanent".

b) If it does work out, "Thanks for your loyal commitment, but soz, you AIB's are out on your rears suckers!".
 
^^^
I like how Nvidia inocently describe what they are doing as "just a test", and not permanent.
Which is code for the following...

a) If it doesn't work out, "It was just a test folks, that's all, wasn't supposed to be permanent".

b) If it does work out, "Thanks for your loyal commitment, but soz, you AIB's are out on your rears suckers!".

Thats exactly what i thought.
 
There's nothing new in this, before AMD bought them out ATI use to sell its own products directly and were popular with some buyers as they thought if the card was made by ATI it was of better quality and would be more reliable. I have no idea if there was any evidence that ‘made by ATI’ cards were any better then those sold by it’s partners but the ATI name seemingly gave more confidence to buyers about what they were buying.

My guess is Nvidia is working on the same principle as the Nvidia brand name is a lot, lot stronger then any of its partners including EVGA, XFX etc and they will sell OEM cards with a standard warranty leaving partners to battle it out with custom coolers, warranties and boxed games to differentiate themselves. I do wonder if they have setup up there own enterprise or are using a 3rd party? If they were going to sell directly it’s a wonder why they didn’t buy up BFG before they went to the wall.

The ATI cards were popular all right, especially with the old Radeon 8500 since it was clocked higher, 275/275 vs 250/250 :D
 
^^^
Don't worry IBM, or someone will buy them for their IP and brand.

According to BSN, Nvidia once claimed 3DFX died because they destroyed the ecosystem they had with their partners and friends became foes, now Nvidia looks to be doing the exact same thing.

http://www.brightsideofnews.com/news/2010/10/4/nvidia-confirms-entrance-into-retail-graphics-with-best-buy.aspx

"When nVidia acquired 3dfx, the company claimed the reason for 3dfx's demise was the fact that 3dfx killed its ecosystem by abandoning the Add-In-Card space and turning all the board manufacturers against themselves.
What will come of this deal? If 1st party boards from nVidia erode its own ecosystem, the partners will become foes and the company will continue to lose the market share."

This reminds me of what explorers used to do in the Arctic when they were in trouble and became desperate, they would dump there backpacks as that would allow them to walk a bit further that day, but when they couldn't walk any further that day they froze...
 
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