Skip to main content

Juicy report says EVGA had other reasons to stop making GPUs

EVGA’s recent departure from the graphics cards industry echoed throughout the enthusiast GPU world, spurring some controversy and speculation. EVGA cited its problems with Nvidia as the reason behind this decision.

However, according to a new report, there might be more to it than EVGA lets on. It seems that aside from the problems with Nvidia, EVGA had some issues of its own.

A black EVGA RTX 3090 graphics card with pastel RGB lighting on top.

The report comes from Igor’s Lab. While Igor has always been a reliable source, it’s important to note that we don’t know what transpired between EVGA and Nvidia, and while there may have been other problems at play, that doesn’t mean that the cooperation with Nvidia went smoothly either.

With that said, let’s dig into what Igor discovered. According to his report, EVGA had an unusual approach to its manufacturing and marketing process, both of which greatly cut into its profit margin. These policies, different from other add-in board manufacturers (AIBs), likely made it so that EVGA was making a relatively small amount of profit compared to its competition.

Get your weekly teardown of the tech behind PC gaming
Check your inbox!

For starters, EVGA relied on third-party manufacturers in order to create the circuit boards and the coolers for its GPUs, while EVGA itself only took care of the engineering. Having to split its profits with these third parties made it so that EVGA’s own profit margin was smaller than that of its competition.

Igor’s Lab contacted some of EVGA’s competitors and found that it may have been making only around 5% in margin profits. Meanwhile, other manufacturers make around 10% in profit margin due to the fact that they do all the manufacturing themselves.

EVGA also ships fewer graphics cards compared to the other AIB partners and that’s because it doesn’t really sell its GPUs globally, instead focusing solely on America and Europe. A smaller number of GPUs sold, and at smaller profit margins, both mean a considerable difference in revenue.

EVGA RTX 3060 sitting on a table.
Digital Trends

Despite these financial problems, EVGA cards were often found among the best GPUs, and many gamers are sad to see the company go. Longer warranty periods combined with EVGA’s step-up program made for happy customers, but sadly, those perks also cut into EVGA’s (already reduced) profits.

All of this doesn’t mean that EVGA’s claims in regard to Nvidia are untrue, but it does show us that there may have been more than one reason for the manufacturer to withdraw from the GPU world entirely. Perhaps the profits, combined with the issues with Nvidia, were just not worth the trouble anymore. Unfortunately, we may never know the full story, so it’s important to take it all with a healthy dose of skepticism on both sides.

Editors' Recommendations

Monica J. White
Monica is a UK-based freelance writer and self-proclaimed geek. A firm believer in the "PC building is just like expensive…
Nvidia RTX 4060 Ti vs. RTX 4070: comparing Nvidia’s midrange GPUs
Nvidia's RTX 4070 graphics cards over a pink background.

Nvidia's RTX 4060 Ti 8GB is one of Nvidia's three 4060 GPUs filling out the midrange segment of the Ada Lovelace generation. Sporting fewer cores than its predecessor, can it stand its ground against the rest of Nvidia's top graphics cards?

Let's find out. We've had the chance to test the RTX 4060 Ti ourselves, and below, we'll tell you exactly how it stacks up against the RTX 4070.
Pricing and availability

Read more
Nvidia may launch 3 new GPUs, and they’re bad news for AMD
An Nvidia GeForce RTX graphics card seen from the side.

In a surprising twist, Nvidia might be releasing not one, but three graphics cards. They all fall under the same RTX 4060 umbrella, although two of them are RTX 4060 Ti models.

This marks a strong entry into the midrange segment for Nvidia, with one of the cards addressing a significant concern -- low VRAM. Should AMD be worried about losing even more business to Team Green?

Read more
Upcoming RTX 4070 may not succeed unless Nvidia makes a key change
An Nvidia GeForce RTX graphics card seen from the side.

Nvidia only has two Ada graphics cards out right now, and they're among the best graphics cards you can buy, but that lineup might soon expand to include not just one, but two new GPUs.

Specifications of the rumored RTX 4070 emerged today from a credible source. The card might be significantly slower than the RTX 4070 Ti, but there's one way in which Nvidia could make it succeed.

Read more