NVIDIA made too many GPUS, which could be good news for gamers
NVIDIA graphics cards could drop in price due to excess inventory.
When you purchase through links on our site, we may earn an affiliate commission.Here’s how it works.
What you need to know
Throughout the global pandemic, it’s been difficult to purchase thebest graphics cards. That’s about to change, however, as NVIDIA CEO Jensen Huang recently confirmed that the company made too many gaming GPUs. As a result, NVIDIA will adjust the cost of some graphics cards for its partners. Whether those savings trickle down to everyday shoppers is yet to be seen, but it seems likely. Regardless of pricing, NVIDIA’s GPUs will be on shelves, which is a welcome change of pace.
NVIDIA recently reported itsQ2 earnings figures, including the fact that the company’s gaming revenue fell short of Q2 2021 by over $1 billion. The company’s overall revenue was up by $6.7 billion, representing a 3% increase year-over-year. The dip in gaming revenue was largely offset by Data Center revenue ($3.81 billion) increasing by 61%.
Huang discussed the figures in a recent earnings call (viaThe Verge).
“We found ourselves with excess inventory,” said Huang. “Our strategy is to sell-in well below the current sell-through levels in the marketplace to give the channel an opportunity to correct.”
“We’ve implemented programs with our partners to price-position the product in the channel in preparation for our next generation,” he later added.
NVIDIA’s RTX 4000 lineup is set to launch this fall, so the company likely wants to get rid of excess RTX 3000-series stock. Even though the RTX 4000-series cards should exceed their predecessors, Huang explained that the RTX 3000 GPUs will “be layered on top” of “exciting next generation” processors.
The company may also look toward the data center space to unload some of its graphics cards. “We hear quite broadly that GPU supply is in shortage in the cloud,” Huang pointed out.
Get the Windows Central Newsletter
All the latest news, reviews, and guides for Windows and Xbox diehards.
NVIDIA CFO Collette Kress also mentioned a “new segment of the market” that NVIDIA plans to “reach with [its] gaming technology,” though she didn’t specify which segment.
Sean Endicott is a tech journalist at Windows Central, specializing in Windows, Microsoft software, AI, and PCs. He’s covered major launches, from Windows 10 and 11 to the rise of AI tools like ChatGPT. Sean’s journey began with the Lumia 740, leading to strong ties with app developers. Outside writing, he coaches American football, utilizing Microsoft services to manage his team. He studied broadcast journalism at Nottingham Trent University and is active on X @SeanEndicott_ and Threads @sean_endicott_.
