According to a recent Tech Times article, EVGA has decided to completely leave the GPU market as well as end its 20-year partnership with chipmaker NVIDIA.
EVGA Exits Graphics Card Market
As we learn more about the decision by the minute, we gain knowledge that EVGA's departure from the partnership was not a smooth transition. According to The Verge, EVGA is terminating its partnership with NVIDIA because it believes the company was a poor partner. The same report entails unfair trade practices that the chipmaker has been committing in the two-decade stint of its partnership with EVGA.
Following the aforementioned pronouncements, the EVGA board has decided not to pursue its next-generation products. EVGA's CEO, Andrew Han, has stated that the company will continue selling its current product line and generation GPUs until supplies run out.
The VGA breakaway represents a significant shift in the video card industry. Tech giant INVIDIA accounts for nearly 80% of EVGA's venue. This implies that EVGA's decision was not made on the spur of the moment but was rather motivated by something so dreadful that the company did not mind losing more than half of its total valuation.
EVGA's decision has the potential to hasten the company's downfall. If EVGA intends to remain in the tech business, it must come up with something big and different. This could imply new partnerships, a new product line, or perhaps a shift in mindset.
EVGA Claims Partner Nvidia Is Hard to Work With
Since its founding in 1999, the California-based company has produced graphics cards, dating all the way back to Nvidia's RIVA TNT2 chips, but EVGA CEO Han "wouldn't even entertain the idea of working with Intel or AMD" to continue making cards, according to a PC Gamer report.
Han has some bold statements about NVIDIA. The CEO stated that parting ways with their most strategic partner and cutting their revenues by more than half is a much easier decision than trying to continue working with the people behind NVIDIA.
For decades, EVGA has built its business on video cards based on NVIDIA cores. However, EVGA appears to be in a strong position to exit the video card manufacturing industry completely. According to reports, EVGA will continue to entertain customers, but once their current supplies run out, they will not look back.
According to an in-depth report from Gamers Nexus, clients will still be covered by EVGA policies, but EVGA will no longer manufacture RTX or other video cards. The company has already produced ~20 EVT samples of EVGA RTX 4090 FTW3 cards but will not be starting to move production. EVGA also has terminated all active card projects, including KINGPIN cards.
Could EVGA's decision not to expand further prove to be a bad one? Is there a backup plan in place for EVGA's latest major move? It will be interesting to see what market the company shifts into and concentrate on.
Related Article: EVGA Ends Relationship with NVIDIA, Exits GPU Business
