The announcement dropped last night via videos posted by Gamernexus and JayztwoCents, both invited to EVGA to be made aware of this announcement. The information was kept secret until now… There will be no EVGA RTX 40 or future generations of GPUs. EVGA is winding down its GPU business. While it seems out of the question at this point, we might hope to see EVGA return to the GPU market one day. Maybe together with Intel or AMD…?
For those not yet familiar with this iconic brand. Founded in 1999, EVGA offered graphics cards exclusively equipped with NVIDIA chips. A partnership which therefore lasted until the breakup 23 years later.
EVGA ends partnership with NVIDIA
“EVGA has terminated its relationship with NVIDIA. EVGA will no longer manufacture any graphics cards, citing a strained relationship with NVIDIA as the reason (other reasons have been mentioned but downplayed). EVGA is not currently considering any collaboration with either AMD or Intel. The company will thus very quickly reduce its workforce by withdrawing entirely from the graphics card market.
Customers will still be covered by EVGA warranties, but the manufacturer will no longer manufacture RTX GPUs or other graphics cards. EVGA had already produced around 20″EVT samples (Engineering Validation Test) EVGA RTX 4090 FTW3 card, but the latter is not going into production and all ongoing projects have been stopped – including the KINGPIN cards. »
Significant consequences for the market and the structure of EVGA
So here is the quote from Gamer Nexus regarding EVGA’s total shutdown of operations in business graphics card. Some important points about this cessation of activity in this area were discussed during the GamerNexus and Evga interview.
- EVGA ceases all graphics card manufacturing activities
- Current consumers will still be backed by the EVGA warranty
- EVGA has generated inventory to compensate for warranty returns
- EVGA expects to run out of RTX 30 by the end of 2022
- EVGA continues its activities in its other areas
- EVGA is not selling the graphics card business
- EVGA will not launch in a new product category
- NVIDIA was made aware in April 2022
- There will be no partnership with Intel or AMD on the GPU front
- That technical tests The RTX 40s were finished, but there will be no production
- Employees assigned to GPUs will be redeployed to other functions.
Suffice it to say that the employees at EVGA suffer the most, with 80% of revenue tied to the sale of graphics cards, EVGA is losing its biggest source of income. And the human resources allocated to 80% of the disappearing turnover cannot all be reallocated to other sectors. Employees could therefore be redeployed in the power supply or motherboard sector to design future products.
Tensions between NVIDIA and EVGA would have worsened the situation
How did EVGA get here? The answer would be on the side of NVIDIA.
According to GN, EVGA is tired of Nvidia putting so many conditions, with threshold price and floor price, when they themselves publish the MSRP price at the last minute. Under these conditions, AIBs like EVGA develop cards without having a perfect estimate of the price at which they can be sold. What is seen on the high-end models. In addition, NVIDIA now controls its own end-to-end chain, from production to direct sales, and competes directly with AIBs with slaughter prices.
So we end up with margins for BIAs truncated by the price of the chip. Add to that the RMA hassle on the RTX 30s, and the result was EVGA losing money on its graphics card sales. So here are the conditions pushing EVGA to end more than twenty years of graphics card manufacturing. An expertise that unfortunately should not be put at the service of Intel or AMD for their GPUs.
The next question is “What will become of Vince Kingpin Lucido?” “. This last work for EVGA for over 10 years in the overclocking section. And especially on GPUs. Without the graphics cards, he is left with EVGA motherboards, a very reduced workload with small sales volume. The work on motherboards should be more prominent in the future , when it comes to products that offer better margins while being more predictable, we’re still waiting for a return from Vince, who at the moment doesn’t really know where that will take him.
Now it remains to be seen if the NVIDA GPU allocations will be redistributed or simply revised downward globally. The need for graphics cards is much lower since the fallout of ” proof of work from Ethereum. We also think about the industry behind the manufacture of EVGA graphics cards, be it for cooling, PCB or even Water blocks.
It goes without saying that the entire editorial staff and society were shocked by this news. EVGA has always been my favorite brand. And today we will no longer be able to enjoy the Kingpin cards and their matches against the GALAX HOF. A very sad lost win for GALAX…
A page turner, thank you EVGA for offering us such great graphics cards.