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General discussionEVGA terminates relations with NVIDA; states they were screwed over.(19 posts)(19 posts)
(19 posts)
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This is my favourite topic
Posted September 16, 2022
It's a bit of a shocking swerve for the company, seeing as the whole video card business was 80% of their revenue. Their CEO seems to imply that they're done with video cards, period. No partnership with AMD or Intel in the foreseeable future.
Posted September 16, 2022
huh, watching right now the video.
Posted September 16, 2022
Ouch!
Posted September 17, 2022
Not sure why the OP has a link to Twitter from which the readers must then click on the Twitter link to see the youtube video.

IMO that's the forum equivalent of a game infested with a double-layer of DRM.

As for the content of the video: IMO EVGA's CEO sound like he's mentally unstable, saying very unprofessional things like "they won't be on Jensen's lap" during the 4000 series launch.

I also totally do not at all believe EVGA's claims that they are "losing hundreds of dollars per card" on their already ludicrously & extortionately & scammily-priced cards.

And if they were really losing hundreds of dollars per card, then they would have went out of business decades ago already.

Sounds like the CEO of EVGA is wrecking his own company and his employees' livlihoods due to his personal mental issues which he is scapegoating into an immature, petty, undeserved grudge against Jensen and NVIDIA, based primarily upon greed, because he wanted to gouge consumers even more than EVGA already does, and NVIDIA wouldn't stand for that extra price gouging that EVGA had intended to do.

Also it's total BS with the CEO saying he is going "take care of his employees" when they have no significant revenue coming in any more, which they won't have after they stop making video cards.

As for the CEO complaining that EVGA doesn't get the tech info and prices for new generations early: of course they don't; because if they did, then there would be massive leaks all over the internet about that very same tech & price info, which would definitely ruin all of Jensen's keynote new generation announcement speeches, long before he ever gives them.

Therefore that makes total sense for NVIDIA to keep EVGA in the dark about the new generations' tech specs and prices until after Jensen's official announcement presentations have been given first. So, that's another illegitimate complaint from the EVGA CEO.
Post edited September 17, 2022 by Ancient-Red-Dragon
Posted September 17, 2022
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Ancient-Red-Dragon: Not sure why the OP has a link to Twitter from which the readers must then click on the Twitter link to see the youtube video.

IMO that's the forum equivalent of a game infested with a double-layer of DRM.

As for the content of the video: IMO EVGA's CEO sound like he's mentally unstable, saying very unprofessional things like "they won't be on Jensen's lap" during the 4000 series launch.

I also totally do not at all believe EVGA's claims that they are "losing hundreds of dollars per card" on their already ludicrously & extortionately & scammily-priced cards.

And if they were really losing hundreds of dollars per card, then they would have went out of business decades ago already.

Sounds like the CEO of EVGA is wrecking his own company and his employees' livlihoods due to his personal mental issues which he is scapegoating into an immature, petty, undeserved grudge against Jensen and NVIDIA, based primarily upon greed, because he wanted to gouge consumers even more than EVGA already does, and NVIDIA wouldn't stand for that extra price gouging that EVGA had intended to do.

Also it's total BS with the CEO saying he is going "take care of his employees" when they have no significant revenue coming in any more, which they won't have after they stop making video cards.

As for the CEO complaining that EVGA doesn't get the tech info and prices for new generations early: of course they don't; because if they did, then there would be massive leaks all over the internet about that very same tech & price info, which would definitely ruin all of Jensen's keynote new generation announcement speeches, long before he ever gives them.

Therefore that makes total sense for NVIDIA to keep EVGA in the dark about the new generations' tech specs and prices until after Jensen's official announcement presentations have been given first. So, that's another illegitimate complaint from the EVGA CEO.
Nvidia isn't any better. Almost every single corporation in the world is being run in this fashion. Glowing short-term projections achieved with dubious methods that destroy long-term viability. Cannibalism is the only word that properly describes this sort of "management".
Posted September 17, 2022
More than just nVidia isn't any better.

All the independent information is behind the EVGA CEO's interpretation. Even some of the stuff from nVidia backs it too, ie they got caught with a massive excess of 3000 series (though it's "impossible to quantify- direct quote- how much of it is crypto related) per the Quarterly Report and had to take a massive charge over them ("These recent reductions in demand and our reduced expectations of future demand have required us to record charges for excess inventory on hand and on order, and cancellation and underutilization penalties.")

Perhaps the most relevant for EVGA specifically though is this: "Our channel partners reduced their inventory and are transitioning to a lower value mix of inventory to better align with demand"

EVGA is the high value nVidia 3rd party manufacturer. And that's where the margins are. Sure, Palit etc probably are doing OK, but they're mass sellers primarily of low value cards at low margin anyway. Not the market nVidia wants for itself, and not the market EVGA inhabited.
Posted September 17, 2022
Nvidia just seems to be a bad company to work with full stop. Read up on what Linux devs had to go through for Nvidia driver support.
Posted September 17, 2022
Nvidia is becoming a scam company they try to adjust the markets by cutting down manfacturing so they can sell less for more (so more profit)

gamers should know what Nvidia is doing to manupulate markets but also kind of try to steal from you the user
they already doing it with telementry now they try to scam your wallet also.

wonder what they think of in the future likely your computer mine for them also
Post edited September 17, 2022 by Abishia
Posted September 17, 2022
According to the video, NVIDIA is undercutting EVGA on its $1400 card by offering the same card for $1000. And this is only happening for the latest models, RTX3080/90.

Kind of feels like a bubble bursting to be honest. The value of these cards feels...ethereal.

And when a bubble bursts, things like this happen.

Only AMD can capitalise on stuff like this at the moment and it looks like they are in the same boat anyway.

Maybe NVIDIA have screwed EVGA over here but they aren't going to lose out massively on this.
Posted September 17, 2022
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lupineshadow: Only AMD can capitalise on stuff like this at the moment and it looks like they are in the same boat anyway.

Maybe NVIDIA have screwed EVGA over here but they aren't going to lose out massively on this.
There's also INTEL, but I don't think anyone is taking their entry seriously, even though Intel was leading the charge in graphical technologies back in the OpenGL days.
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Abishia: Nvidia is becoming a scam company they try to adjust the markets by cutting down manfacturing so they can sell less for more (so more profit)
Actually, I think Nvidia is trying to scam in the other direction; trying to become full Apple, where they control the fabrication and the chips. But much like Apple, I don't think people are going to take them seriously when they start announcing 3000$ consumer grade video cards.
Post edited September 17, 2022 by Darvond
Posted September 17, 2022
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lupineshadow: According to the video, NVIDIA is undercutting EVGA on its $1400 card by offering the same card for $1000. And this is only happening for the latest models, RTX3080/90.

Kind of feels like a bubble bursting to be honest. The value of these cards feels...ethereal.

And when a bubble bursts, things like this happen.

Only AMD can capitalise on stuff like this at the moment and it looks like they are in the same boat anyway.

Maybe NVIDIA have screwed EVGA over here but they aren't going to lose out massively on this.
Any idea what the profit margins are on these high-end cards?
Posted September 17, 2022
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richlind33: Any idea what the profit margins are on these high-end cards?
Very untenabley low. Apparently somewhere in the range of 1-2%, with losses being taken on old stock and lower end cards.
Posted September 18, 2022
Yeah, they're very low at the moment. You'd have to expect that EVGA is far from the only vendor struggling. It's not entirely nVidia's fault as we've gone from every card made being sold not too long ago to a glut, but they certainly haven't helped and don't seem to 'care' that they aren't helping. Their 'partners' are treated a lot more as supplicants than how 'partners' would imply.

Usually there are two strategies to make money on GPUs- similar to a lot of things really. There's the premium angle which EVGA took and relies on making a decent profit per card sold and selling on value added (ie quiet, cool, performance, service). From the video you can kind of squint and get that EVGA was making maybe 200$ per card? 150$? in profit at the $1400 price point if dropping to $1149 was selling below cost. That's very much spitball though, and will vary significantly from year to year and product to product. It's also still only ~10-15% margin.

Then there's the bulk angle which would be someone like Palit for nVidia cards. Sell lots of decent cards for not much profit per card. IIRC if you get a brown box type PC with an unbranded nVidia in it chances are that Palit manufactured it, for may be as little as $5 actual profit (and even less at the absolute bottom end). There are just a lot- a lot- of budget nVidia cards in beige box PCs so that $5 per card adds up very quickly. These were also effected somewhat by shortages, but not much by the actual crypto boom since they tend to be uneconomic cards for mining anyway.
Post edited September 18, 2022 by Phasmid
Posted September 18, 2022
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richlind33: Any idea what the profit margins are on these high-end cards?
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Darvond: Very untenabley low. Apparently somewhere in the range of 1-2%, with losses being taken on old stock and lower end cards.
There goes his quarterly bonus.

You'd think that a CEO would know that we are in turbulent economic waters and that volatility is the only certainty, especially re energy. In some places you couldn't give these cards away because of energy restrictions.

I have a 1080ti and have no plans to buy another card.
Posted September 18, 2022
To this day, I view GPUs as a necessary evil, mostly due to their lack of standardization.

They are unavoidable for some things, but I've certainly never sought to learn a great deal about them as I prefer to focus either on standards or at least things that are open and cross-platform.
Post edited September 18, 2022 by Magnitus
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General discussionEVGA terminates relations with NVIDA; states they were screwed over.(19 posts)(19 posts)
(19 posts)