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[JEMC]

Captain_Yuri said:

JEMC said:

From the JPR article, EVGA is estimated to have 40% of the dGPU US market. To lose a partner like that so close to the launch of your new products is something to not only care, but worry about.

And that's exactly what EVGA, and probably the other AIBs in private, complains about. It's not a sustainable situation.

Well, from the GamersNexus video, the CEO doesn't say that he wants to retire, he only said that he wants to spend more time with his family and is tired of travelling for meeting with Nvidia, meeting where, from what we're learning, they have little to no saying at all about the strategy and marketing campaign.

By not travelling that much he achieves his goal of spending more time with the family.

Well Evga gave their notice in April so Nvidia had plenty of time to prep. Nvidia might not have known that Evga was gonna make such a big deal out of it but they certainly knew about Evga leaving so it really shouldn't matter much.

And the thing overall with Evga is they essentially failed to adapt to the demands of the current market imo. You look at the other AIBs, especially the big 3 which are Asus, MSI and Gigabyte, you see them developing a lot of new products, especially things like laptops and monitors which are high margin products. Evga on the other hand has 80% of their revenue purely from selling GPUs. I think ultimately that is what killed them and I am sure we will see other AIBs go down in similar fashion in the future that fail to adapt. Evga did certainly try laptops back in the Pascal days but that never really went anywhere.

Now evga will be known as a power supply company which to be fair considering ATX 3.0 Power Supplies are coming out and there's a lot of power hungry GPUs that will be coming out from both Nvidia and AMD, isn't a bad idea considering the margins. But overall, we will see where they go from here cause as a brand name, they are about to become largely irrelevant very quickly.

Giving the notice 5/6 months before the launch has given Nvidia time to react, but it rremains to be seen if they've been able to work with the rest of its partnres to increase their production to make up for the loss of EVGA. At worst, cards that should be shipped to Europe or other markets will be sent to the US to try to cover any possible problem. Whatever happens, tho, I don't think we'll ever know because the first shipments will sell out as usual and there'll be no way to know how supply would have been if EVGA was still in the game.

I'm not going to argue that EVGA failed to adapt to the new times, but the root cause of that necessity to change and adapt is still relevant: Nvidia's policies have been cutting the profit of AIBs for years. It's not that the market has changed, it's Nvidia that has been changing the rules, that's the main problem and I think it's where the main focus of this discussion should be.

Also, the diversity that others have done works for now but it's a double edged sword. Thanks to that, they're able to stay in the game and keep growing and making money, but they'll reach a point where those other business start making more money than GPUs and, when that happens, they'll have to ask themselves if it's worth to keep making and selling GPUs or if it's better to exist that market. After all, the revenue isn't as important as the profits, and with cards getting more complex and expensive to manufacture and the profit margins getting smaller, that's a decision that they'll have to face in the not so distant future. Even more so with Nvidia entering the market with products at prices they can't match.

As for EVGA's brand losing value, yes, they'll lose it for GPUs for a while. But the fun thing about people is nostalgia, and how we give value to brands that are no longer around, sometimes even more than we did when they were around. Of course, for nostalgia to kick in it needs time, and by the time EVGA could try to exploit that the market could be so barren that it wouldn't be worth the effort.