EVGA feuded with Nvidia – and stopped making graphics cards

PC Graphics Card Manufacturer EVGA Has announced that it will end manufacturing of all GPU hardware at the end of the current hardware generation following a massive spat with the GPU tech giant Nvidia.

In a move that could have major implications for the entire PC gaming hardware industry, EVGA not only abandoned Nvidia — it also has no plans to develop GPUs with Nvidia’s two main rivals, AMD or Intel. Instead, the company known for producing high-quality graphics cards at reasonable prices will exit the GPU business entirely.

Today, a handful of hardware-specialized media outlets broke the news in a variety of detailed reports, the best of which can be found on YouTube’s awesome GamersNexus (and embedded below). EVGA briefed these channels directly, and the company confirmed that, despite building prototypes and test cards based on Nvidia’s upcoming 40-series GPUs, it won’t continue to develop those products — or any other Nvidia products.

The claim was confirmed on the official website, but only in a brief forum post by EVGA’s product manager. “EVGA will not ship the next generation of graphics cards,” the statement said, before reiterating that support for the current generation will continue.

Of course, the spat seems to be mostly about money, with EVGA’s main complaint being Nvidia’s alleged use of its own “founders edition” cards to cut third-party cards. Since Nvidia makes these GPUs and essentially eliminates the “middleman” of third-party manufacturers like EVGA, Gigabyte, or Asus, it can charge less — thus, it gains the ability to put other manufacturers in an impossible Market position. Claiming that in many cases, it’s impossible for EVGA to actually sell certain 30-series GPU models profitably, that’s the size of the undercut that Nvidia is able to perform with its internal cards.

Speaking with GamersNexus, EVGA CEO Andrew Han described the decision as a matter of principle rather than strictly a financial one – going on to detail how Nvidia communicated and treated its partners poorly.

For EVGA, this is a big decision. Although EVGA makes other products, including power supplies, GamersNexus reports that more than 70% of the company’s revenue comes from its GPU division — a market the company is now looking to leave entirely. It could also be painful for Nvidia, as EVGA accounts for a large percentage of global Nvidia GPU sales – but that gap could simply be filled by other partners.

For whatever reason, EVGA isn’t interested in GPU engineering with AMD or Intel technology — so it’s pulling out. Still, despite how many employees will no longer have the skills associated with the brand, top EVGA executives say they have no intention of laying off staff.

All of this comes at a particularly interesting and difficult time for the PC hardware market, especially when it comes to GPUs. Over the past few years and throughout the pandemic, GPU demand has skyrocketed due to a combination of demand for gaming hardware and the crypto boom. This has resulted in soaring prices and low availability – which has led GPU makers to up the game and ramp up production. Then, as expected, the bottom fell off.

As the value of cryptocurrencies slumped, miners sold their old cards and demand fell — causing many hardware companies to take a shower, leaving behind huge excess inventories. Shortages turned into surpluses almost overnight. Nvidia ended up missing its revenue forecast by a wide margin. That’s where we’re at right now, on the cusp of a new generation in the form of the 40-series, but an excess of 30-series that clog the supply chain.

Whatever happens to the 40 series, EVGA won’t be a part of it right now. The company will continue to sell its existing 30-series card inventory and retain some units to ensure it can meet warranty and repair requirements for cards sold. However, once out of stock, the company plans to stop producing GPUs.