A shocking report claims that EVGA, a 20-year veteran in the GPU market and one of Nvidia’s biggest partners, is exiting the graphics card business altogether. As one of the most visible brands selling graphics cards to consumers, its exit from the market will have huge ramifications in the future. EVGA will continue to sell its current line of graphics cards, but won’t design new hardware as Nvidia launches its GeForce RTX 4000 series of GPUs.
The report comes from GamersNexus, a reliable source (and a friend of the PCWorld team) in a 30-minute briefing. The video cites direct interviews with EVGA executives and quotes Founder and CEO Andrew Han and Chief Brand Officer Joe Darwin. PCWorld finds no reason to doubt the veracity of the information presented.
GamersNexus founder Steve Burke cites EVGA sources as to why the company made this decision. According to EVGA, the longstanding dissatisfaction between the company and its most crucial supplier led to a final falling out. Apparently, this was known to Nvidia executives as early as April. EVGA complains that it consistently received product information far too late in the development cycle, even failing to disclose chip prices until the MSRPs of Nvidia-branded graphics cards were announced to the public.
EVGA also claims that Nvidia is preventing its partners from selling cards to retailers below floor prices for some models and above price ceilings for others. This is a common practice in the electronics industry intended to maintain the perception of market value, but EVGA says the policy has prevented the company from creating unique high-end designs at more cost-effective prices. EVGA representatives have also complained that Nvidia’s Founders Edition cards are priced lower than cards from third-party vendors, directly competing with companies like EVGA, Asus, Gigabyte, and Zotac with an unfair advantage. EVGA says the current downturn in the GPU market is costing them “hundreds of dollars per video card” for high-end designs. Many of Nvidia’s GPU manufacturing partners are known to have similar, if not equally passionately voiced, complaints.
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 company has stated unequivocally that it has no interest in building new graphics cards based on chip designs from AMD or new competitor Intel. Nvidia graphics cards represent 78% of EVGA’s current business, and GamersNexus quotes the company as saying it has no plans to expand into new product lines. That means inevitable shrinkage and downsizing of the California-based company, which currently employs around 280 people worldwide. Darwin says no layoffs are planned at this time and workers will be transferred to other departments, though company executives expect employee ‘attrition’ as this news breaks .
As of this writing, EVGA’s non-graphics products include other desktop PC components such as power supplies (20% of its remaining sales) and motherboards, cooling hardware and a few cases, as well as gaming mice, keyboards, and video capture cards. EVGA said it intended to keep the company together and was not looking for a merger or acquisition.
Current owners of EVGA graphics cards would continue to receive customer service, and the company has GPUs and parts on hand for RMA and warranty repair purposes. Although some technical samples of EVGA-branded RTX 4000 cards exist, retail products will not be manufactured or sold, and the existing supply of EVGA RTX 3000 cards is expected to be sold before the end of 2022.