A GamerNexus investigation claims that EVGA, one of Nvidia’s most important partners, is making a sea change. The Taiwanese company leaves the graphics card market.
A survey claims that EVGA, 20 years in the GPU market and one of Nvidia’s biggest partners, has decided to exit the graphics card business altogether.
EVGA no longer wants to design graphics cards
As one of the most important brands, the US market leader in the graphics card sector, its exit from the market will have enormous consequences in the future. EVGA will continue to sell its current line of graphics cards, but will not release new hardware as Nvidia launches its next-generation GeForce RTX 40 GPUs.
The survey comes from GamersNexus, a reliable source, which made a 30-minute video on the subject. The video cites direct interviews with EVGA executives and quotes Founder and CEO Andrew Han and Chief Brand Officer Joe Darwin.
Nvidia’s policy is singled out
During the exchanges organized by GamerNexus, we better understand the motivations of EVGA. According to this investigation, the decision is not based on the Taiwanese group’s finances, but rather on respect.
It is the policy of Nvidia which is pointed out. EVGA would criticize Nvidia for not communicating enough with its partners about its strategy and its products before launches. In addition, the Founders Edition cards (Nvidia’s reference cards) sold at a floor price are also highly criticized.
According to EVGA, the discontent is not recent between Nvidia and its supplier. Apparently, the talks got tense as early as April of this year.
Control prices by controlling partners
EVGA also claims that Nvidia prevents its partners from selling cards to distributors below the floor prices for certain models and above the ceiling prices for others. This practice would aim to maintain high prices, but EVGA assures that this policy has prevented it from creating high-end products at more accessible prices.
According to GamersNexus, EVGA has made the decision to exit the graphics card business altogether, and not simply part ways with Nvidia as a business partner. The Taiwanese company said it has no interest in designing new graphics cards based on chips from AMD or new competitor Intel.
At EVGA, Nvidia graphics cards account for 78% of its revenue. There are also power supplies, and various other hardware components. EVGA will therefore have to reduce its activities and separate many employees.
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