Nvidia's GeForce graphics cards have seen a marked drop in sales, perhaps an indication that their GPU prices will continue to drop, especially as Team Green partners are rumored to still have a large amount of surplus RTX 3000 stock. to liquidate.
Nvidia just released its fiscal second quarter results, showing the company delivered nearly 20% of expected overall revenue, some of which was due to a "significant" decline in gaming GPU sales.
Gaming revenue was €2040 billion (approx. €1700 billion, AU€2900 billion) for the year, down 33% from the previous year and a steep 44% drop quarter over quarter.
CEO Jensen Huang commented (opens in a new tab): "Our gaming product sales forecasts declined significantly during the quarter. As we expect macroeconomic conditions that impact sales to continue, we have taken steps with our gaming partners to adjust prices and channel inventory.
Analysis: A delicate situation to manage for Nvidia?
As you may remember, we saw the aforementioned actions to adjust prices when Nvidia implemented a plan to drastically reduce the recommended prices on the RTX 3090 Ti, RTX 3090, RTX 3080 Ti and RTX 3080.
The question is: will we see more price reductions in the near future? As the rumor mill has been plagued for some time with rumors that Nvidia's partners, i.e. third-party graphics card manufacturers, have a lot of excess RTX 3000 inventory to get rid of, as we mentioned at the beginning. And if that's the case, a fairly steep drop in business activity quarter over quarter certainly won't help.
The situation Nvidia appears to be in is a complex one, in terms of balancing the need to sell current-gen stock against the launch of the next-gen GPU (Lovelace). The problem is that the launch, or even the announcement, of what are said to be much more powerful Lovelace graphics cards anytime soon will further dampen RTX 3000 sales as consumers see what they could get if they wait, and maybe wait.
So the bottom line is that the RTX 4000 launch has to come soon enough; after all, Nvidia can hardly let it slide, as that would mean RDNA 3, AMD's next-gen offerings also expected to arrive shortly, would remain unanswered. but at the same time, Ampere sales should increase, so we think prices could fall further in the near future.
We've already seen a promising sign of this, at least at Ampere's top end, with EVGA seriously dropping the price of its base RTX 3090 Ti, down to €1,000 MSRP (nearly half that). the price).
Another alternative to help sell off RTX 3000 inventory could be to slow down the RTX 4000 release process, meaning that as some vine rumors have suggested, only the RTX 4090 could launch this year (with RTX 4080 and others earlier in the year). of 2023). It's just a rumour, so a lot of seasoning needs to be applied, but it's possible that Nvidia is staggering the launch of the Lovelace models longer than usual, with slightly longer delays between GPUs than the originally announced monthly cadence for the RTX. 4090, 4080 and 4070.
At least for us, and this, again, is just speculation, it looks like we might somehow get a longer, slower RTX 4000 series launch, or see some deeper price cuts on RTX 3000 models very soon. Because let's not forget, we also have the cost of living crisis which will also affect the ability of PC owners to spend more money on GPUs...
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