After two decades, EVGA terminated its relationship with NVIDIA and will exit the market of making GPUs, as Digital Trends reported.
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LAS VEGAS, NEVADA - JANUARY 06: The Nvidia GEFORCE RTX 2060 graphics card is displayed during a press event for CES 2019 at the Mandalay Bay Convention Center on January 6, 2019 in Las Vegas, Nevada. CES, the world's largest annual consumer technology trade show, runs from January 8-11 and features about 4,500 exhibitors showing off their latest products and services to more than 180,000 attendees.
NVIDIA was accused by EVGA of keeping partners out of the loop on future products and decreasing prices for GPU without the other party's consent. Adding to these is selling their own Founder's Edition models for a much lower price. Because of these issues, EVGA lost sales worth hundreds of dollars for RTX 3080, 3090, and 3090 Ti.
Conclusion of Partnership
In a detailed report by Gamer Nexus that was posted on his Youtube channel, the work ethics of Nvidia has been difficult to work with, as EVGA Chief Executive Office Andrew Han explained. He also added that the company was disrespected by what Nvidia had done to them.
The host of Gamer Nexus, Steve Burke, also cited other reasons why the decision has been made. One of them was the sudden decline in mining that the company is experiencing right now. Han also might have a personal reason which can be related to his approaching retirement.
With that, EVGA decided to exit the marketplace for the graphics card. No further plans were presented for making a new graphics card based on chip designs from AMD, as the company stated that they have no interest in making a new one.
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Despite the downsizing of the company and the loss of 80% of its total revenue stream, no layoffs are planned as of the moment. EVGA currently has 280 employees worldwide. Based on the report of Game Spot, some of them will be moved to other departments instead.
What's Next for EVGA?
The operations of the other ventures of EVGA will continue. This includes power supplies which are four times higher gross margin than its graphic business despite only making up 20% of the company's revenue.
PC Mag also reported that Han does not want EVGA to be acquired by any company as they are in a healthy financial position. This might also lead to other companies that are only interested in profit, the CEO added.
Potential collaborations with AMD or Intel will be a good alternative for Nvidia, but Han made it clear that there are no plans and interests in GPU production in the future.
EVGA will continue to sell the remaining stocks for its 30-series and is expected to run out by end of the year. Warranties will also be accepted by the company until their validity expires.
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Written by Inno Flores
