This is quite big news. Never expected it. No wonder recently evga gpu like on fire sale, even lower than "normal" despite the general fall in gpu prices due to the upcoming gen.
I don't understand their claim about nvidia's founder's edition cards causing them to sell their own gpus at a loss. Founder's edition like its name suggests, is a limited run/stock version of the gpu. Once it runs out, buyers have to turn to the usual AIB or find someone who is willing to resell their founder. Founder's edition is not the most powerful either in terms of spec or cooling(many dislike the blower design due to heat). Outside of the US, it's hard for people to get their hands on a founder's edition since nvidia doesn't sell it to other countries direct nor do most us retailers that stock it so most will end up having to buy AIB like evga anyway. Lastly, it does not make sense either because asus is able to sell their GPUs at a much higher(asus could be argued as the most expensive among them) premium despite nvidia's founder's cards.
Even if margins are low, 80% of gross revenue is nothing to sneeze at. If their high margin products were selling very well, they would have already made up the 80% instead of gpus. I would rather sell a 2% margin and get 1 billion than sell only 80% ones and get only 100 million. I don't see how the company will survive without a significant downsizing.
Anyway, this isn't good for the consumer market because it will lead to higher base prices in the long term and evga was considered one of the better AIB ones.
