EVGA Terminates Abusive Partnership With NVIDIA
September 17, 2022
evga KINGPIN Nvidia rtx RTX 2000 RTX 3000 RTX AMPERE RTX TURING

KINGPIN fanatics on suicide watch.

Something that has certainly come as a shock to many is that EVGA will no longer be producing NVIDIA RTX based graphics cards moving forward following the awaited end-of-life cycle for NVIDIA’s RTX 3000 series.

EVGA’s partnership with NVIDIA has been a longstanding one of eternal commitment, given how NVIDIA as a company has given EVGA preferential treatment over the years, it seems rather unbelievable that NVIDIA CEO, Jensen Huang could burn this bridge.

EVGA don’t actually plan on producing graphics cards from either AMD or NVIDIA moving forward with the next generation actually, but the real question is, why?

NVIDIA is an abusive tyrant who overrules its own AIB partners, just ask XFX about that, but its the AIB partners who seemingly put up with NVIDIA’s bullshit and turmoil only because evidentially, they made a profit. Unlike EVGA.

EVGA, like a few other companies they are more or less seen as one of those “premium” brands and with that comes questionable quality control, from garbage motherboards to exploding graphics cards, EVGA cannot seem to catch a break.

There is also that one time where EVGA thought they could enter the laptop market, and nearly bankrupted the entire company in the process.

EVGA’s CEO, Andrew Han spoke to Gamers Nexus behind closed doors regarding the future of the company and its deteriorating relationship with NVIDIA.

As mentioned above, EVGA has no plans on jumping ship to either INTEL ARC or AMD Radeon graphics cards following the conclusion of the RTX 3000 series, EVGA will cease manufacturing of GPUs entirely once they run out of their current inventory which is projected to be until the end of 2022. EVGA however are holding onto some inventory for warranty / RMA purposes to support existing customers.

EVGA as a company generate majority of its revenue, to the tune of almost 80% from graphics cards, roughly 20% come from the sale of power supplies, with the remainder tossed up between motherboards and other miscellaneous products.

Revenue however isn’t indicative of profits.

For EVGA, NVIDIA’s number one AIB partner to stop producing GPUs entirely, clearly something big has gone down, or more rather what’s down are EVGA’s profit margins on NVIDIA RTX GPUs.

EVGA attributes its decision to abandon GPU manufacturing entirely on NVIDIA.

NVIDIA have been relishing the prospect of insane demand driven by cryptocurrency mining, from soaring demand brings the opportunity to profit, and NVIDIA took the opportunity to begin overcharging AIB partners for individual core sales, unfortunately for EVGA they’ve had the misfortune to overengineer high-end graphics cards resulting in actual company losses on each GPU sold.

EVGA is losing money hand over fist for basically every GA102 product it offers, even for the short period of time where you could find RTX 3090’s from EVGA for $2500, apparently by the price they were paying NVIDIA for the privilege they were still losing money.

I guess that’s why EVGA tried to shoehorn an included PSU with its 3090 Ti KINGPIN

EVGA however still manage to scrape marginal profits from the sales of more lower-end hardware, such as GA104 and GA106 components.

EVGA had been price gouged by the manufacturer since the start of the crypto / covid scamdemic, just like every other AIB partner except in their case they were actually losing money, eventually it all boiled over once Ethereum mining had begun to dwindle and phase out entirely, leaving EVGA with lots of gouged inventory and even greater losses.

EVGA as a company feels disrespected by NVIDIA for their treatment, how all respective AIB board partners are generally withheld information until the very last minute regarding the costs of not just GPU MSRP prices but wholesale costs of individual chips as well.

AIB board partners generally operate on marginal profit margins from the get go, which have been further slimmed since the launch of the RTX 2000 series back in 2018, however EVGA also feel threatened by NVIDIA’s attempts at taking charge of the supply chain by offering their own in-house “Founder’s Edition” components directly for sale, undercutting AIBs.

EVGA’s head of operations, Joe Darwin mentioned that they’ve tried to contact NVIDIA regarding the issues the company faces but have been met with utter silence.

Joe Darwin also states that there won’t be employee layoffs at EVGA following the decision, however a lot of employees will certainly be repositioned in the company and I am sure that many of them would rather leave altogether than be positioned away from graphics cards.

Though it’s anyone’s guess how brand ambassadors such as Vince “KINGPIN” Lucido will maintain employment and or relevance from his longstanding partnership with EVGA of whom throw endless amounts of cash (and GPUs) his way in order to generate PR hype from some synthetical world records.

Overall there’s several valid criticisms of NVIDIA but a lot of the blame can also be shifted towards EVGA, for their questionable quality control, overengineered aftermarket models and probably ordering too much stock during the mining boom combined with zealous PCB engineering designs have all lead to their longstanding relationship falling through.

EVGA have been losing money hand over fist with their aftermarket RTX 2000 series components, NVIDIA is becoming this abusive mega-corporation that couldn’t care less, simply because of the sheer amount of people in the world who continue to buy their inferior wares at higher prices, EVGA probably would’ve committed to this decision a whole lot earlier given the sheer losses it had accumulated with RTX Turing but I guess two generations consecutively with NVIDIA demanding more money… it’s time to give Jensen the fucking boot.

Generally speaking, it’s unknown exactly what NVIDIA plans to do with their allocation that would’ve otherwise gone to EVGA moving forward with their next generation hardware, though I am sure inferior brands such as ASUS, MSI and Gigabyte would be quick to snatch them up.

It’s not too farfetched to believe that NVIDIA may in fact retain its allotment for themselves, for their own Founder’s Edition of which undercuts every AIB on the market and provides the company with additional profit margins, either way the abandonment of EVGA leaves a big portion of the market up for grabs in North American markets which I am sure ASUS would be all too happy to secure.

Rest assured nobody is fretting over not being able to buy EVGA for their next generation hardware, consumers will continue to consoom and they will just buy another (inferior) quality graphics card from one of the several other AIB partners available.

EVGA now joins XFX in the exclusive club of telling NVIDIA to get fucked, alongside Microsoft (XBOX), Sony (PlayStation), Tesla and Linux and hopefully Nintendo.

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