According to a recent report from the Gamers Nexus YouTube channel, EVGA Corp will no longer be making video cards. This comes after the organization said it no longer wished to continue working with NVIDIA. At this time, EVGA reportedly has no interest in working with rival companies like AMD or Intel.
“EVGA will not carry the next generation graphics cards,” the company wrote in an official post on its forums. “EVGA will continue to support the existing current generation products. EVGA will continue to provide the current generation products. EVGA is committed to our customers and will continue to offer sales and support on the current lineup.”
This is a surprising decision because roughly 78% of EVGA’s revenue came from video cards. However, the company told Nexus Gamers that its partnership with NVIDIA was ultimately not profitable.
EVGA also told Gamers Nexus that it won’t be laying off employees. However, the business does plan on slowly cutting down on the amount of work done by some staffers now that members of the video card department have less to do.
The Profit‘s Take:
They’re basically shutting down 78% of their business because they’re fed up with NVIDIA. You never see companies eliminate roughly 80% of their revenue over a business disagreement. It sounds like they’re leaving the door open to make amends with NVIDIA. That’s why they said they wouldn’t team up with Intel or AMD. NVIDIA is a clear market leader and is becoming more vertically integrated. If you can push EVGA out of the market, then you can build 1 million founders edition cards instead of just 100,000. I wouldn’t be surprised to see other OEMs get pushed out of the market. It feels like NVIDIA is doing this on purpose in order to have more control.
(All information was provided by GamesIndustry.biz and Wikipedia)
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