Hot on the heels of Nvidia's devastating earnings report, the company appears to be desperately trying to sell its existing RTX 20- and 30-series GPUs as quickly as possible. Graphics card prices have plummeted this week, with the EVGA store and Newegg Shuffle (opens in new tab) leading the charge. This suggests that Nvidia is readying up its RTX 40-series launch for the near future, and its partners are looking to dump inventory.
At the EVGA store, many of Nvidia's RTX 30-series GPU models are on sale. Flagship AIB partner models such as the 3080 FTW3 Ultra Hydro Copper, and other FTW3 models, are now priced incredibly closely, often at the GPU's official MSRP. Several other models are priced well under MSRP, including the RTX 3090 Ti, 3090, and 3080 Ti. EVGA is discounting most of its 3090 tier cards as much as 42%.
Some of the discounts have changed over the past weekend, and some cards are now out of stock. Perhaps the most surprising discount comes from the RTX 2060 6GB. Prices for this GPU are now as low as $239.99, which is just $5 more than its smaller — and significantly slower, if you check our GPU benchmarks — brother, the GTX 1660 Super. In our testing, the 2060 was about 25% faster. It's also worth mentioning that the RTX 2060 12GB variant was selling for just $249 yesterday, though it's now at $319.
The Newegg Shuffle (opens in new tab) also had some great deals, with an Asus RTX 3080 Ti Tuf model discounted as low as $833, a Zotac RTX 3080 Ti Extreme model for $839, an RTX 3070 Tuf for $515, and an RX 6600 Dual for just $249. All prices include promo codes featured on each listing, though of course you had to get lucky to get the GPUs at those prices.
Nvidia's Preliminary Q2'23 Financial Losses
Nvidia's financial revenue stream for 2022 is not looking good. In a recent preliminary financial results report, the company announced a whopping 44% quarterly loss in gaming revenue. Total revenue was down from $8.1 billion to $6.7 billion, a 19% quarterly decline, which gaming revenue plummeted from $2.04 billion to 3.64 billion.
This impending loss of funds is the result of the cryptocurrency crash of 2022. That has resulted in significantly reduced demand for Nvidia's GPUs, right when supply started to improve, leaving the company with excess soon-to-be-outdated parts. Nvidia CEO Jensen Huang announced channel price adjustments for its gaming partners, to combat the sting of reduced GPU demand, which is likely what we're seeing from EVGA and others right now.
Nvidia still appears to have a 2022 release window for the RTX 40-series, probably sooner than later, which also accounts for the highly discounted 30-series prices. The RTX 40-series has been rumored for a Q4 of 2022, possibly as early as September, so it makes sense to clear out the existing inventory in preparation for those cards.
But don't expect cheap RTX 40-series GPU pricing out of the gate. Many gamers are likely still looking to upgrade, and the new Nvidia Ada architecture sounds very promising. Nvidia pre-ordered a lot of TSMC 5nm wafers at the height of the global GPU shortage in 2021, but those wafers could end up being allocated to data center and mobile parts in order to keep average selling prices up. However, even the launch of RTX 40-series apparently won't make up for the pending quarterly results.
I think this article is right about the need to reduce inventories. The 30-series is clogging up shelf space and warehouse inventories right now. The high-end is especially bad. Now that mining and scalping is out of the picture, PC GPUs are being forced to compete with their much more affordable console competitors -- who also happen to have a steady stream of new games.
I'm not sure why anyone would buy a 3090 Ti for $1150 or a 3080 Ti for $850 when the 40-series will give the same performance at half the price. These aren't deals yet.
I bought the 3080 on a recent sale with the idea that the 4080 will be $900+ and be hard to find for the next 6 months. We will see, but I'm happy with my decision.
NVIDIA is still very strong in the black and these today numbers are just the results of some investors selling off some of its shares to profit from, one in a lifetime, NVIDIA's wild success these past few months (especially in 2021) and they'd likely buy back more shares before Ada releases.
Remember, at this same time in 2020, NVIDIA's share price/M-Cap was ~$160B, but since then, NVIDIA's shares were increased and overvalued by shady analysts up to 500%+ (in 12/21, same company, selling the same products, just a refresh, and no new line of tech gadgets) so, considering that and what its share price is today, NVIDIA is still profiting very well over the noise.
This, is what happens when companies move away from just trying to supply a product and make as much (Which is OFTEN a LOT) as they can off it while it's desirable, to trying to get greedy and make unrealistic progressions into parts of the market that there is no clearly defined leverage in , yet. And it usually ends up poorly for the aggressor. So, hard to feel sad for them.
They have actually lost nothing just made a bit less than they were hoping for.
Then also you have to remember talking about EVGA is not the same as talking about Nvidia.
Evga is a separate company that happens to make GPU cards designed by Nvidia using some components supplied by Nvidia.
When EVGA was selling a 3080 GPU through their web site last year for $1400 no one is reporting on the amount of profit margins or the billions they were making then!
Same with the 3090, EVGA never sold one card for the Nvidia msrp of $1499, please don't expect me to start crying now!