One of the most important makers of Nvidia-based graphics cards won't be making them anymore: EVGA has decided not to produce video cards with Nvidia's next generation of GPUs, the RTX 40-series, reports analyst Jon Peddie(opens in new tab). The news is even bigger than that, though: Speaking to Gamers Nexus(opens in new tab), EVGA CEO Andrew Han said that the California-based company isn't just dropping Nvidia chips, but will «completely stop» making graphics cards going forward.
EVGA has been making graphics cards since it was founded in 1999, going all the way back to Nvidia's RIVA TNT2 chips, but Han «wouldn't even entertain the idea of working with Intel or AMD» to continue producing cards, says Gamers Nexus.
EVGA's decision is the result of frustration over its treatment by Nvidia, according to both sources; it's «about respect,» Gamers Nexus said. Graphics cards are reportedly 80% of EVGA's current business, but that doesn't mean it plans to close up shop—it doesn't even have layoffs planned. Once EVGA finishes selling off its stock of RTX 30-series cards, it will focus on its other products, which include motherboards, power supplies, and other PC components and peripherals.
The majority of EVGA's revenue comes from sales of its Nvidia graphics cards right now, but Han told Gamers Nexus that the margin is incredibly thin, and that it makes 300% more profit on power supplies. Even so, it isn't entirely clear how EVGA will ditch the largest part of its business without laying off any employees, including staff members currently dedicated to graphics card engineering and support. «Attrition» is expected, says Gamers Nexus.
EVGA's decision isn't the sort of dispassionate business move we've come to expect from
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