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EVGA and NVIDIA are set to split; EVGA takes a backstep from making Next-Gen NVIDIA Cards

According to analyst Jon Peddie, EVGA has decided not to develop video cards featuring Nvidia’s RTX 40-series next-generation GPUs. According to EVGA CEO Andrew Han, the California-based company will stop producing graphics cards. The company has decided to end partnership with NVIDIA

Since the company’s founding in 1999, EVGA has been creating graphics cards that use Nvidia’s RIVA TNT2 chips. Gamers Nexus claims that Han, however, would not even contemplate the idea of working with Intel or AMD to continue producing graphics cards.

Revenue Lack

EVGA’s decision was by anger over how Nvidia had treated the company. Gamers Nexus stated that it was about respect. According to reports, 80% of EVGA’s current revenue comes from graphics cards.

But this doesn’t mean that the company intends to shut down due to its breakup with Nvidia. in fact, it told Gamers Nexus that it doesn’t even have any layoffs scheduled. EVGA will focus on its other products, which include power supplies and motherboards. Once it has sold out all of its RTX 30-series graphics cards stock, it will move on to other PC components and accessories.

Revenue by EVGA’s Nvidia graphics cards 

Right now, sales of EVGA’s Nvidia graphics cards account for the majority of the company’s revenue. But Han told Gamers Nexus that the margin is relatively tiny and that EVGA makes 300% more money on power supplies. Even still, it’s unclear how EVGA will eliminate most of its commercial operations without firing any staff members.

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The choice made by EVGA is not the impartial corporate action that one may anticipate. According to reports, Han believes Nvidia has been unfair to EVGA. And told Gamers Nexus that the decision to discontinue working with Nvidia was simple because doing so had been so difficult.

EVGA Partnership with NVIDIA

EVGA and Nvidia’s alliance shifted from what EVGA deemed a true partnership to a customer-seller arrangement. Additionally, according to Peddie and Gamers Nexus, EVGA feels terrible. It is that Nvidia was undercutting its cards with its own Founders Editions.

Statement from EVGA

According to the firm, EVGA devotes itself to its consumers and will keep providing sales and support for the current lineup. Uncertainty surrounds Nvidia’s perspective on its affiliation with EVGA. Although it’s not exactly polite, the business did give PC Gamer a comment regarding EVGA’s exit from the GeForce scene.

An Nvidia representative stated, “We’ve had terrific cooperation with EVGA over the years. And will continue to support them on our current generation of devices. We wish Andrew Han and our EVGA colleagues the best. That’s all we’re getting for now, and Nvidia would have more to say if it weren’t a publicly traded business with a $328 billion market cap.

The 30-minute Gamers Nexus video on EVGA’s exit from the graphics card market discusses Han’s future intentions. Han, the CEO of EVGA, informed the channel that he had no plans to retire or sell the business.

Stay tuned for more updates!

 

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