EVGA exiting videocard business despite large part of company revenue - The UpStream

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EVGA exiting videocard business despite large part of company revenue

posted Sunday Sep 18, 2022 by Scott Ertz

EVGA exiting videocard business despite large part of company revenue

When it comes to videocards, one of the top brands for years is EVGA. The company makes a solid product and often does it at a more affordable price than many of its competitors. Despite the company offering a full range of computer components, most of its revenue comes from these video cards. Despite all of this, a recent report suggests that EVGA may be getting out of the video card business entirely.

What's going on with EVGA?

Originally coming from a report from GamersNexus and later confirmed by EVGA, the company will be completely exiting the video card business going forward. The company will not produce cards for Nvidia's next generation series, expected to be announced and shown off in the very near future. They will, however, continue selling the current generation of cards and supporting any products that are in the wild today.

This announcement comes following rumors that there have been issues between Nvisia and EVGA. The original GamersNexus video expands on these rumors and features quotes from EVGA's founder and CEO Andrew Han and chief branding officer Joe Darwin. They claim that the relationship has been strained for several years because of the behavior of Nvidia's leadership. In particular, they take issue with Nvidia's lack of clarity over specs unit llate in the production cycle, along with no pricing information over the chips until after the company announced the hardware and the MSRP for each model.

The real issue, however, comes down to the company's ability to compete fairly in the market because of restrictions placed on them by Nvidia. For example, Nvidia creates floors for some cards and ceilings for others, that partners like EVGA are prohibited from pricing outside of. So, lower end cards are not allowed to be priced outside of a particular window, preventing manufacturers from creating prices to compete strongly with the other Nvidia partners.

They also take issue with Nvidia's Founders Edition cards - cards released by Nvidia, priced below the competition, and competing directly with those partners. It's similar to what happened when Microsoft entered the computer market, selling the original Surface. However, while the Surface line served to inspire the other manufacturers, they never tried to sell their own line beneath the price of their Windows partners. Nvidia, however, seems to be aimed directly at the partners.

What comes next?

We're not entirely sure what's next for either Nvidia or EVGA. Certainly, their brand name no longer makes sense, if they exit the video card business entirely. However, what could be coming is a new partnership with AMD. They have had such a strong relationship with Nvidia that they have never seemed interested in engaging AMD, but they could easily transition from GeForce to Radeon in the next generation of cards.

For Nvidia, it seems like the company is trying to dev=cide what its own future looks like. If the comments are true, they don't seem focused on supporting partners. Does that mean that Founders Edition cards will be the company's new focus? Do they want to eliminate partners in the future, or is it possible the partners will all follow EVGA? Unfortunately, there is no way to know until we get to the future.

How is this move making you feel? Are you worried about the future of video cards, or has EVGA never been your go-to brand? Let us know in the coments.


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