Gamer's Nexus: EVGA terminates NVIDIA partnership

[JRPGfan]

mjk45 said:

Captain_Yuri said:

Could be but I think it comes down to them not wanting to be in the GPU space all together. I think if they wanted to continue in the GPU space, they would have stayed Nvidia regardless of all that has come out because Nvidia has 80% of the total GPU market share of which Evga sold around 40% of the NA GPU sales. Them going AMD which barely can keep 20% of the total GPU market share and Intel which is less than 1% probably won't do them any good. It's like going from a high volume, low margin with Nvidia to going to low volume low margin with AMD.

I think it's good to remember that no one buys Nvidia because EVGA, people buy EVGA because Nvidia first and brand second and I think what EVGA has done as what Linus said is keep the gate open in case they do want to come back. Because the last thing any company wants is to be like XFX that really pissed off Nvidia and now is battling for scraps by being forced to go exclusively AMD.

I agree your post makes more sense, my concern is the mixed messaging, I can see them not wanting to be in the GPU space altogether even though it doesn't leave them with much else, but companies in that position usually either sell the whole business or if they see the rest of the business being the way forward they divest the part they no longer care about, in this case it seems to be neither option since they don't seem interested in trying to promote their value, instead they seem content to sit in some kind of weird holding pattern without any real clarity as to why, so in the end just like my life it is for the future to decide whether or not we see any form of lucidity regarding the matters of today or in my case lucidity regarding any day past or present.

Their CEO isnt retireing, he likes his work atm.
Also they where well run, so they dont have financial woes to worry about.
He values loyalty alot, so he would feel like working with another company than nvidia, would be disloyal.
He rather not make GPUs anymore, if Nvidia is screwing them over.

So whats gonna happend, is they are just gonna downsize, fire alot of workers, and focus on whats easier and more profitable for them.
Ei. Motherbaords & PSU's.

78% of their revenue was GPUs, but it was apparently less than 1/3'rd of the company's profit margins.
GPUs where becomeing bad bussiness for them, and apparently Nvidia was about to make it worse, and they are hard to work with.
Evga choose to just say "okay, this is it, this is the line we wont cross"

Evga apparently over years had talks with nvidia about their issues, and where always just ignored.
This is what happends, when you dont value a partner that works with you.