Nvidia's gaming sales massively down but it's working to 'adjust channel prices'

pcgamer.com:

Nvidia has announced preliminary results for the previous three months, preempting its regular financial call, to announce a major shortfall in revenue. The company was expected to rake in $8.1 billion in revenue over just three months but instead took home $6.7B. Now that's still a lot of cash, but for Wall Street's favourite tech company times are noticeably tougher than they were just last year.

Just last year, Nvidia was selling every GPU it manufactured to hoards of partners eager to shift GPUs at inflated prices. Today, CEO Jensen Huang has announced(opens in new tab) Nvidia is taking action with its «gaming partners to adjust channel prices and inventory» to help shift more stock.

Gaming revenue is the primary reason for its recent shortfall of cash, down by 44% to $2.04B compared to the previous quarter and down 33% versus this time last year.

“Our gaming product sell-through projections declined significantly as the quarter progressed,” Huang says.

Nvidia's Professional Visualization and OEM and Other segments were also down compared to 2021, at 4% and 66% respectively. Though other parts of the business were up: Data Center was up 61% and Automotive gained 45%. Not a complete write-off, then.

Nvidia is expecting to include $1.32B in charges primarily related to inventory and «related reserves.» That means Nvidia is likely holding onto a huge amount of stock it no longer wants.

«The significant charges incurred in the quarter reflect previous long-term purchase commitments we made during a time of severe component shortages and our current expectation of ongoing macroeconomic uncertainty,» says Colette Kress, CFO at Nvidia.

It makes sense as to why there are still likely so many GPUs floating around. After over