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EVGA No Longer Working With Nvidia Due To "Disrespectful Treatment"

EVGA has terminated its partnership with Nvidia for what it called "disrespectful treatment" from the graphics chipmaker.

A new report from Gamers Nexus revealed EVGA actually terminated its contract with Nvidia in April. EVGA will sell through its remaining stock of RTX 30-series video cards (retaining some for warranty purposes), but after that, it will cease selling video cards altogether. EVGA will not sell the upcoming 40-series or the inevitable 50-series cards.

"We are not going to be on [Nvidia CEO] Jensen's lap on stage, so I don't want people to speculate what's going on [when we're not there]," EVGA CEO Andrew Han told Gamers Nexus. "EVGA has decided to not carry the next-gen."

At issue is Nvidia's treatment of EVGA and other third-party GPU manufacturers. Nvidia often doesn't provide these manufacturers with the MSRP price of cards until it's announced during a public presentation almost immediately before launch, making it almost impossible for EVGA to determine whether it can sell its licensed cards for a profit. What's worse, Nvidia uses its market dominance to demand a price ceiling on its high-end cards like the RTX 3080 Ti or RTX 3090. According to EVGA, it actually sells these cards at a loss, losing hundreds of dollars per card, eliminating whatever profits it made selling low-end cards like the RTX 3060.

Ultimately, the decision was made to stop selling Nvidia products entirely. However, while Nvidia cards weren't profitable, they still made up 80 percent of EVGA's total revenue. EVGA says that it will not lay off any of its 280 employees, but if it's not making video cards, many of those employees will simply have nothing to do.

According to Gamers Nexus, EVGA also has no plans to partner with AMD or Intel either. Rival third-party manufacturers like Asus, MSI, and Zotac are expected to pick up EVGA’s allocation when the 40-series is announced.

While EVGA's complaints are valid, we should note that the graphics card market is expected to contract dramatically as Ethereum–one of the biggest cryptocurrencies in the world–has moved to proof-of-stake networking, which has virtually eliminated the need for cryptomining to support the network. Second-hand graphics cards from out-of-work cryptominers have already flooded the market and are pushing card prices down.

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