Nvidia responds to EVGA's departure from the GPU market
Nvidia did not have anything to say regarding EVGA's allegations
Published: 17th September 2022 | Source: PC Gamer |
EVGA has breaks ties with Nvidia shortly before their RTX 40 series launch
Yesterday, EVGA confirmed that they planned to exit the GPU market (read more here), citing the company's increasingly sour relationship with Nvidia, and the low profit margins that Nvidia allows their partners to have.
EVGA power supplies reportedly have 300% larger profit margins than their graphics cards, with GPUs accounting for almost 80% of the company's revenue. While power supplies only account for 20% of EVGA's revenue, it accounts for a larger proportion of the company's profits.
Another factor that contributed to EVGA's decision to break ties with Nvidia is Nvidia's modern Founders Edition graphics cards, which undercut Nvidia's hardware partners with MSRP pricing and premium cooling solutions. It is alleged that Nvidia do not allow their AIB partners to generate large margins from their RTX series products and use their Founders Edition models to force lower pricing. From EVGA's perspective, Nvidia are unfairly competing with their partners, and do not share enough profit with them.
Below is what Nvidia had to say to PC Gamer regarding EVGA's departure from the GPU market. The response is very diplomatic and states nothing about any of EVGA's grievances with Nvidia.
We've had a great partnership with EVGA over the years and will continue to support them on our current generation of products,
We wish Andrew [Han] and our friends at EVGA all the best.
EVGA's departure from the GPU marked comes days before Nvidia's planned RTX 40 series product launch. The timing of EVGA's departure from the GPU market is designed to hurt Nvidia on the eve of their RTX 40 series reveal.
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