EVGA will no longer do business with NVIDIA

[Krenum]

I'm actually really happy with my 3080. If EVGA is skipping this next generation, so am I.

EVGA is skipping ALL generations from this point forward...

 

[Flogger23m]

This is going to be BFG all over again isn't it?

Probably. They have PSUs, motherboards and I believe rebrand some mice/keyboards. Their PSUs generally seem to be based off of good units.

But they built up their reputation on GPUs. That was the core business, and I only learned about their other products because of their GPU recognition. Even if their motherboards and PSUs are still good I assume they'll see a decrease in sales because of the GPUs going away. I suppose there is a possibility they may focus on those areas and become well known for them but color me skeptical. People also upgrade GPUs more frequently than motherboard/PSUs.

So yes, I think EVGA will see a gradual decline into obscurity before going under. Considering they were one of, if not the most popular in the US market this is certainly an interesting decision.

 

[AlphaQup]

It's not surprising when they have had the best customer service in the business.

This is why I've always gone with them, it's a no brainer. Never had to RMA a video card or a PSU of theirs (and haven't had any of my old ones fail, I'd have heard about it), but my case did come with some fucked up parts when I originally got it (Cracked top and front grills and my retainer clips retainer clips never latched) due to shipping (there was box damage). Registered with EVGA, took pics, and sent the RMA in same day I received the case. Process was simple, and I had replacement parts tracking numbers next day for 2 day shipping if I recall correctly:

Doubt I'd get the above from anyone else. To contrast, it took me over 2 weeks each time I had a DDR4 Dominator Platinum DIMM go bad (twice since buying the kit ~3 years ago, see sig for specs).

I'm bummed for customer service above all else.



EDIT: Since I'm calling out Corsair by contrast, might as well provide the proof.

Here's my last 2 RMA's with them... (note the red box...)

> 2 weeks, and almost 1 month to even get a shipment out.... an absolute joke by contrast.

 

[Draver]

Maybe NVIDIA wanted to buy them up, or at the very least was grooming them for it. Could make sense with some of the things Steve mentioned the CEO said, about how only greedy people could end up buying his company.

 

[Niner21]

So yes, I think EVGA will see a gradual decline into obscurity before going under. Considering they were one of, if not the most popular in the US market this is certainly an interesting decision.

I'm afraid you may be right here. I would hate to see it, but it's trending in that direction. I'm glad EVGA took a stand against Nvidia regardless whatever happens from here.

 

[Flogger23m]

I do wonder long term how this will develop. Is Nvidia looking to phase out AIBs? Apparently Best Buy still has or recently had Founders Edition cards. I recall they were originally supposed to be limited production runs back in the RTX 2****s, but it seems like that isn't the case anymore.

 

[Thunderdolt]

The skeptic in me says this a combination of negotiating tactic and PR move. Hear me out:

• EVGA is likely forecasting a 50-70% reduction in unit sales compared to Ampere. It's a super saturated customer base at this point where everyone is very happy with their GPU performance and thus won't be looking to upgrade. This is in addition to the macroeconomic conditions. Thus, they were already looking for ways to manage this 40-50% hit to their revenues.
• Knowing the revenue hit simply from reduced sales, cutting that revenue to zero doesn't appreciably change the severity of the hit.
• This type of exit announcement opens the door for AMD to offer them a sweatheart deal. The timing is potentially right for them to be onboard in time for RDNA 3 with a little bit of a late launch. AMD benefits from the PR of having an Nvidia-exclusive AIB change teams, so they might offer terms and engineering support that they wouldn't normally offer.
• Less likely but still possible is that Intel offers special terms to EVGA. Intel would benefit hugely from the PR, distribution network, engineering partnership (drivers), brand recognition, and general market penetration. That could potentially motivate a pretty special deal.

Separately, this will have a big impact on EVGA's relationship with distributors and retailers. This just made it far harder for those parties to sell their already hard to sell EVGA inventory. That's going to make it an uphill battle for them to get back into the game.

Also, something else to consider is how long the PSU business will last. They're just white labeling the manufacturers' designs these days. It wouldn't be hard for those manufacturers to expand their already existing direct sale presence. Plus, with the downturn of the GPU market overall, they're going to be seeing a huge hit to their PSU business since so many fewer people will be upgrading.

 

[realworld]

They

I do wonder long term how this will develop. Is Nvidia looking to phase out AIBs? Apparently Best Buy still has or recently had Founders Edition cards. I recall they were originally supposed to be limited production runs back in the RTX 2****s, but it seems like that isn't the case anymore.

Probably. At the rate the Founders Edition cards are improving, it's going to be near impossible for AIBs to compete in price per perf. 4090 FE $1500 vs FTW3 Ultra $1800 with nearly identical performance and most of the margins still goes to Nvidia. haha brutal

 

[madpistol]

I do wonder long term how this will develop. Is Nvidia looking to phase out AIBs? Apparently Best Buy still has or recently had Founders Edition cards. I recall they were originally supposed to be limited production runs back in the RTX 2****s, but it seems like that isn't the case anymore.

I definitely was thinking this, but I didn't want to say anything. Now that Nvidia has dipped their toes into this arena and learned that they can make A TON more money manufacturing the cards themselves, they might be thinking about axing the AIBs and taking on all production responsibilities themselves. AIBs can't compete with Nvidia when Nvidia is making money on every chip they sell to the AIBs and ALSO make Founders Edition cards where the margins are an order of magnitude higher, even when sold at a lower price. It's nearly impossible.

We shall see in the coming years.

 

[Randall Stephens]

I wonder if this was part of the driver to raise the extended warranty prices. If your card goes down after 5 or 6 years you tend to get a refurbished card of a more current generation. If they knew this was coming a few months back when the raised them, they saved themselves a ton of libility down the road. Eventually they’ll contract out to a different aib to service those claims, so if you have an issue in a few years, I wonder how well they’ll be able to handle that.

 

[undertaker2k8]

Atleast I gave them $$$$$ in their final year, RIP EVGA, from my first stateside card, the 6800GT -> to my latest 3090 and a ton in between, it was good to have known ya, just hope you maintain a feasible service path for the 4 years left on my warranty.

 

[polonyc2]

I'm afraid you may be right here. I would hate to see it, but it's trending in that direction. I'm glad EVGA took a stand against Nvidia regardless whatever happens from here.

the fact that they took this stand against Nvidia's business practices at the risk of going bankrupt should be a big part of their enduring legacy...

 

[Mchart]

the fact that they took this stand against Nvidia's business practices at the risk of going bankrupt should be a big part of their enduring legacy...

They aren't going bankrupt. That's why they could do this. My guess - The CEO is just slowly sunsetting the company, and will let it end a good life. He's not stupid. He is aware of the current economics & geopolitics going on that is likely going to crush this industry by the end of the decade anyways. There isn't a better time to get out.

 

[staknhalo]

Yeah, every company pushes "PR messaging"

It very well could be a stand against Nvidia

It very well could be a stand against Nvidia is good cover for something else

 

[caddys83]

I do like EVGA PSU. Corsair PSU used to keep shutting down my PC during intense gaming and for the longest could never figure out why lol.

 

[Krenum]

T_T

 

[jlbenedict]

Instead of FTW , this is definitely FTL

 

[WhoBeDaPlaya]

Would be ironic if nVIDIA goes the 3Dfx route of being the sole board maker (since it seems to view AIBs as scum-sucking parasites)

 

[TaintedSquirrel]

EVGA will regret this.
Nvidia will regret this.
Customers already regretting this.

Everybody loses.

 

[PeaKr]

I hope Jensen's leather jacket dies in a fire!

 

[staknhalo]

I hope Jensen's leather jacket dies in a fire!

 

[jfreund]

If RDNA3 is indeed chiplet-based, maximizing utilization of 5nm, AMD would possibly have the volume to take on EVGA as an AIB.

 

[VF31Tomcatters]

That is a shame. My current and last three GPUs have been nothing but EVGAs. I even had one(a 1080) die on me under warranty and they sent me a new 1080 Ti in return. Also, they offered me top notch customer support when I RMA'd the 1080 GPU.

 

[noko]

If RDNA3 is indeed chiplet-based, maximizing utilization of 5nm, AMD would possibly have the volume to take on EVGA as an AIB.

If AMD would allow very custom designed cards without the senseless restrictions that Nvidia imposes, prices for custom cards not restricted, make it fun for EVGA and users, keep them much more in the loop -> not hide pricing and give them discounts for volume shipments etc. EVGA would be a great brand name for AMD and put back some fun as well. An unrestricted Kingpin designed 7900XT or maybe the dual GCD version extreme that wastes Nvidia would be rather fitting in the end .

 

[t1337duder]

Welp, looks like I will want to return my 3090 Ti while it's within the return window. Shame because it's a spiffy card...

 

[Axman]

If RDNA3 is indeed chiplet-based, maximizing utilization of 5nm, AMD would possibly have the volume to take on EVGA as an AIB.

It's half.

It uses chiplets but a single die for the GPU core. With separate chiplets for cache and memory controllers.

They're still a generation or *two* ahead of Nvidia if the leaks are accurate.

And they're doing stuff Intel needs to do, too, like APUs that are console-parity. Intel can't afford, literally, to kill off their graphics, even though MLID is making headlines saying so. He's not wrong, but he is couching the message.

 

[Eshelmen]

Meh - they had one hell of a run with Nvidia. Oh well.

Plenty of other good ones to select
PNY, MSI, Asus, Zotac, Gigabyte, etc.

 

[cjcox]

BFG is still around. Some of their products stink though.

 

[TaintedSquirrel]

Big Fuckin Garden

 

[Flogger23m]

If AMD would allow very custom designed cards without the senseless restrictions that Nvidia imposes, prices for custom cards not restricted,

That actually isn't a bad thing. Otherwise many AIBs would throw more RGBs and other needless stuff on there and bump the prices up by $150-200.

 

[FurbySlayer]

They aren't going bankrupt. That's why they could do this. My guess - The CEO is just slowly sunsetting the company, and will let it end a good life. He's not stupid. He is aware of the current economics & geopolitics going on that is likely going to crush this industry by the end of the decade anyways. There isn't a better time to get out.

true, there is likely some harsh economic times ahead.
playing games with a company who plays games that cost you money isnt helping.

 

[gvx64]

Sounds like the CEO of EVGA made a very sound business decision. The upcoming tsunami from inflation, recession or worst combined with a glut of used video cards hitting the market. No business, even Nvidia will be able to predict supply chain costs, market conditions for adequate profit. EVGA without adequate information or withheld critical data points have no real choice but to pull out.

As for AMD and particularly Intel, lol -> Intel has zero market presence on discrete and current GPU. I hope EVGA does not waste time with that black hole unless Intel really really makes it worth it. As for AMD which has 20% roughly of the GPU discrete market -> 1/5 so to speak -> Does not sound like too much of an opportunity. Now AMD or AMD AIBs giving jobs to EVGA GPU bunch may be the best chance for the employees. Next generation of GPUs is coming into a very different market condition, maybe no one is going to make much money from it or just plain loose.

Now if EVGA really is planning to keep most of their employees, that indicate to me there are other internal plans not yet revealed. The insistence it seems over and over again employees will be moved around tells me EVGA does have plans and not just laying down. Partnership with someone else? Like Corsair?

This is sound logic. Do you think that once the market stabilizes (if it stabilizes) and the glut of GPU's are not an issue eVGA has plans to look at returning to their partnership with NVidia?

I mean, I wouldn't write off another GPU boom happening this decade. Let's assume the worst and there's a big war, I really think that the applications for AI are going to be enormous, even if bitcoin mining is dead. Cuda cores are still the best way to execute deep neural networks and frankly I wouldn't be surprised if enthusiast graphics cards find themselves going into drones (of course who knows if components will be available by that time). I just think that it would be smart for the eVGA management to keep the NVidia door at least cracked open so that they can make a speedy return if the opportunity presents itself. That's the thing with volatile markets, it's usually not smart to sell the farm when things bottom out, it's better to wait for the next boom. GPU's used to be a fairly stable market with gamers but with crypto and AI, this market is really become something totally different than it was even just 10 years ago. I just hope that eVGA understands the bigger picture here and that they won't end up regretting this as a lost opportunity.

 

[Red Falcon]

With ETH going proof-of-stake, I think this was the turning point that was the tipping point for EVGA to drop NVIDIA, primarily due to the loss of profit per sale.
This is just like GTA 2 - it's all about respect.

 

[chithanh]

This is going to be BFG all over again isn't it?

another BFG. yuck. I don't see how they will continue to exist as a company after this?

I'm actually more confident in the company's survival with EVGA strictly winding down the GPU business and their plan not including selling 2x as many PSUs and 5x as many mobos to make up for it. Had they depended on making up lost revenue in other areas, the company would have been doomed for sure.

This type of exit announcement opens the door for AMD to offer them a sweatheart deal

Certainly all of AMD's GPU production for the foreseeable future is allocated to existing AIBs already.

Less likely but still possible is that Intel offers special terms to EVGA.

You mean if by next week, Intel is still in the consumer discrete GPU business...

Official news next week.

 

[Comixbooks]

Just caught this I guess I'm going with ASUS. EVGA cards are usually the Best but not anymore.

 

[Eshelmen]

Is it likely that remaining AIBs would increase their MSRP because of this?

 

[Derangel]

If RDNA3 is indeed chiplet-based, maximizing utilization of 5nm, AMD would possibly have the volume to take on EVGA as an AIB.

Even if they did have the volume (which is unlikely early on as everything will be allocated already) I imagine the sheer amount of time it would take for eVGA to prototype, test, and produce custom AMD cards it would make more sense to wait until the following generation. I rather doubt eVGA would want to talk up how much they don't want to make any GPUs for any company anymore then turn around and only release reference AMD cards and definitely not several months after launch.

Is it likely that remaining AIBs would increase their MSRP because of this?

No. MSRP is set by Nvidia and Nvidia also sets a price ceiling on high end cards.

 

[WilyKit]

eVGA’s board of directors need to move swiftly to get rid of that CEO or he’s going to destroy the company. I get nvidia might not be the easiest to do business with but unless You’re actually trying to destroy a company, you don’t burn bridges that 80% of your business runs through.

 

[WilyKit]

Time will tell. EVGA had some serious consumer pull.

Their consumer pull is about as fickle as it gets. I highly doubt their consumers will stop buying GPUs becaus hey can no longer get EVGA, they’ll just buy an ASUS, gigabyte, MSI, Zotac, etc etc

 

[DukenukemX]

No company in the GPU biz had the rep EVGA did. Easily the best customer service in the industry. The air is salty around here.

Let me break this down so you understand what's going on here. EVGA and pretty much all AIB's are responsible for the current GPU market situation due to greed. The PC gaming market is gonna hurt for many years due to this. EVGA isn't leaving because of Nvidia, but because the GPU market has no place else to go but down. They could go with AMD or with Intel, but they would rather step out of the market because they know that prices of GPU's have to go down dramatically to even get decent GPU sales. Of course they have low margins because Nvidia won't lower prices. Nvidia also owns the overwhelming majority of the GPU market, so going with AMD or Intel won't be profitable.

The only ones salty are the shareholders that Nvidia is desperately trying to appeal to, because Nvidia's stock has a lot more to go before it hits bottom. Nvidia doesn't care that they lost EVGA because Nvidia sells graphic cards themselves. EVGA doesn't care because they know the RTX 4000 series cards are barely an upgrade from the 3000 series, while also being double or triple the price of the used cards. Which means nobody in their right mind will buy them. EVGA is doing a smart move and they're getting out while the getting is good.