NVIDIA says consumer demand for GPUs weakened, but Intel and AMD both sold more GPUs last quarter. In fact, AMD continued to experience shortages during the second quarter, even with TSMC churning out chips as quickly as it was able. Furthermore, AMD was actually able to sustain a price increase on all but one product SKU for three consecutive quarters--a virtually impossible feat in the allegedly competitive GPU market.
We could also stop for a minute to discuss the fact that NVIDIA's entire product lineup is 100% obsolete below a buck ninety and change.
Let's just be honest and agree that "weakening consumer demand" is the equivocal answer to a very important question: "Gosh, how do we explain to our shareholders that we were eight months late to the DirectX 11 party with a low-margin ASIC that's barely faster than its competitor?"
When their own products are months late to the party, and then at launch only present two or three solutions, then you cannot blame 'weakening consumer demand' on lack of sales.
You bring good products to all markets where there is a desire (low and mid range as well), and you sell units. Simple.
Demand is high for GPUs. Gamers are still building and putting the best GPU money can buy inside, and right now, those are Radeon parts.
I think it's too early for NVIDIA to be bullish on their new Quadro cards. They've been on the market for three weeks (all 3 of them).
Classic case of a company overpromising and underdelivering in every aspect.
Fermi was going to change the world remember? Its gonna cure cancer, while giveing us a gaming experience that is so much better than anything we have ever seen!
Comes out, its hot, its a little faster, but not by much at least nowhere near the promise, and general consensus is that you don't get what you pay for.
The rest of the world is catching up with me! Its all as I have forseen.
Seriously though, this is what happens when a technology company gives its marketing dept priority over R&D.
I feel that if Nvidia don't do well with their next generation of Gamer-centric GPUs they are eventually gonna end up dropping out of the gaming business, but stay strong in the workstation and server arenas.
AMD was actually able to sustain a price increase on all but one product SKU for three consecutive quarters--a virtually impossible feat in the allegedly competitive GPU market.
Becoming a great marketer I salute the fact its entire truth and not bended words. I think it is safe to say Nvidia knows it is losing market share but you and I both know that gain is not from the high end market. AMD has design wins with netbooks, laptops, desktops etc... Its good to see AMD in the game for the last year, it can only mean good things for all of us.
Nvidia missed the boat by not releasing mid range and low end cards. That is where the bulk of sales are. People just don't want 9800 GTX+ or GTX 260 cards anymore. But than again I am happy with my uber fast 480 GTX's
Yeah, NVIDIA isn't going anywhere anytime soon. They are still making money. Being gobbled up by a bigger company -could- be a possibility, but I think NVIDIA would rather they stay on their own.
I don't believe they ever explicitly stated that, but that is more or less what they set out to do with their Tesla boards in the medical segment.
Which perhaps, they should be applauded for.
I asked, because it's not the first time he's made the claim, with the same derisive and condescending tone. There's nothing wrong with exhibiting a preference for a piece of hardware, or indeed the company that makes it, but twisting words for a quick putdown, especially when it relates to an issue of this magnitude seems slightly out of order.
Not that any of that has anything to do with the topic of this article.
Nvidia has many things that will drive its bottom line up. They don't just make discrete GPU's these days. Yes they let their discrete GPU line slip but just like 5000 series back in the day they will overcome.
I asked, because it's not the first time he's made the claim, with the same derisive and condescending tone. There's nothing wrong with exhibiting a preference for a piece of hardware, or indeed the company that makes it, but twisting words for a quick putdown, especially when it relates to an issue of this magnitude seems slightly out of order.
Mondi,
Jen Hsun Huang boasted about Fermi's compute performance at Nvidia's GPU Technology Conference 2009, when he specifically referenced the advancements Fermi would contribute to cancer research, and shortly thereafter they introduced compute the cure... Look it up...
Now, thats not necessarily a bad thing, but lets be real, it was to tap dance around the fact that Fermi really is that practical as a gamers GPU. Gamers had to believe that Fermi was going to be the Jesus card in order to sit around and wait for it for months when AMD had the only viable DX11 enthusiast grade gamer GPU on the market in the 58xx series.
Gamers, wait for Fermi... We are going to do things you never imagined, that was the general tone.
As a gamer, I think its fair to say the hype machine oversold the value and power of Fermi a bit. I don't think its unfair to say that, do you?
To be fair, the NVIDIA GTC isn't for gamers at all. It's strictly a DCC/HPC conference. As we've seen with recent tests at Icrontic, it delivers on those goals quite admirably.
Very true Thrax. The comments made by Jen-Hsun Huang did reefer to their Quadro line & not GeForce. I never even thought about what platform he was talking to/at, and it was for sure not the GeForce audience. But than again its a shame those results did not carry over into the GeForce line.
Jen Hsun Huang boasted about Fermi's compute performance at Nvidia's GPU Technology Conference 2009, when he specifically referenced the advancements Fermi would contribute to cancer research, and shortly thereafter they introduced compute the cure... Look it up...
Now, thats not necessarily a bad thing, but lets be real, it was to tap dance around the fact that Fermi really is that practical as a gamers GPU. Gamers had to believe that Fermi was going to be the Jesus card in order to sit around and wait for it for months when AMD had the only viable DX11 enthusiast grade gamer GPU on the market in the 58xx series.
Gamers, wait for Fermi... We are going to do things you never imagined, that was the general tone.
As a gamer, I think its fair to say the hype machine oversold the value and power of Fermi a bit. I don't think its unfair to say that, do you?
That's not necessarily a bad thing? Cliff, how is that a bad thing in any way whatsoever?
I looked up compute the cure. Nowhere do they throw out the phrase "We're gonna cure cancer with Fermi". Instead they lay out the goals of a philanthropic program, that through them and their employees has already contributed large amounts to cancer research, from both a monetary and technical standpoint.
I'll repeat, I've got no problem with your passion for ATI/AMD's products, I recognize that they did very well with their DX11 parts. I do however, take issue with your glib misrepresentation of this particular position. It's not big, and it's not clever.
Cliff... Actually it really is. Pushing out double the performance in the professional space is impressive.
I guess for anything Nvidia to mean something to you they would have to push 300% increase over anything ATI had and it would have to be 100% cheaper right?
Also when it comes to the medical space Nvidia's products are breaking new ground with MRI data being read in real time rather than having to wait for results and 3D imaging (as odd as they look) is a next step in a direction that the medical field can really use. I can't comment on ATI in the medical field as they haven't said much or shown much that I have seen, but no matter how you spin it, Nvidia is pushing technology in many places ATI is not. It will only lead for better things for everyone, regardless of the logo or brand.
Cliff... Actually it really is. Pushing out double the performance in the professional space is impressive.
I guess for anything Nvidia to mean something to you they would have to push 300% increase over anything ATI had and it would have to be 100% cheaper right?
Also when it comes to the medical space Nvidia's products are breaking new ground with MRI data being read in real time rather than having to wait for results and 3D imaging (as odd as they look) is a next step in a direction that the medical field can really use. I can't comment on ATI in the medical field as they haven't said much or shown much that I have seen, but no matter how you spin it, Nvidia is pushing technology in many places ATI is not. It will only lead for better things for everyone, regardless of the logo or brand.
Thats the sales pitch that gamers are not buying. Listen, its nice its doing great things for MRI imaging, but what should that mean to the enthusiast graphics consumer at home?
This is the point I'm making. Forever now, graphics, when the discussion was levied on the good ole message boards amongst enthusiasts, it has always been about entertainment, gaming, encoding, and practical things like driver quality, and thermal dynamics.
You can't ignore what the home consumer cares about by saying, look at all this amazing stuff we are doing over there!
Thats more or less the point I'm trying to make with the reference about cancer research, its cool stuff, but when it comes to my machine at home, none of that matters. I want to know how I'm going to have the best experience at home, I want something reliable, I want something thats not going to sound like a jet turbine on my desktop while I try and play a round of Battlefield. I want something that is not going to bake the innards of my investment, and I want it available, at a reasonable price, because frankly, thats all its for, to play games, watch and encode some video.
Saying, look at what we are doing in this space and that... Its a creative way to try and avoid the conversation about how impractically hot and inefficient Fermi is for a home PC environment. Its nice that Nvidia thought big and designed an architecture that could lead to amazing advancements, but that means absolutely nothing to the home enthusiast today, and the financial reports reflect that.
Heated discussion as usual 'eh =P
I have to admit I'm a little nvidia biased myself so here goes:
I've always hated ati for the exact same reasons nvidia is being hated right now, back in the 90's when it still was ATI they constantly did the same thing. Announcing one card after the other with synthetic benches showing how great it performs, we'd dump our cash into it because we felt sorry for them and then the cards totally sucked.
I'm not going to deny that the current nvidia cards are stupidly flawed(cept the 460 i guess) but I have to defend them a little in the sense that they just launched a few architecture and its bound to suck a while. I think the 460 is kind of proof that something good, affordable, and not requiring a nuclear power plant can come from it.
I also read some interesting comment in another article on the same subject about how nvidia is actually fixing their messes with the faulty products that was shipped as opposed to other companies that would just look the other way.
Finally lets not forget the big picture, every superhero needs a nemesis! If nvidia dies tomorrow ati card prices will skyrocket and pretty soon everyone will be hating on them. Also what incentive would they have to push their tech as hard as they can without competition? The fact that both companies are fighting hard with no clear winner is very good despite setbacks along the way. We, the consumers, are the ones winning in the end in this situation.
Gee, am I the only person here who was awake when that thing happened...you know....that thing...ah..
re..re..recession. Yeah that's it. I love technology as much as the next guy, but come on Graphics cards are a luxury and with millions unemployed, maybe their last quarter was bad because huge numbers of potential customers are broke? Just wonderin'.
Gee, am I the only person here who was awake when that thing happened...you know....that thing...ah..
re..re..recession. Yeah that's it. I love technology as much as the next guy, but come on Graphics cards are a luxury and with millions unemployed, maybe their last quarter was bad because huge numbers of potential customers are broke? Just wonderin'.
One company grew their market share, shipments, ASPs, revenue and profit during this recession. One didn't.
RootWyrm
Icrontian
Comments
We could also stop for a minute to discuss the fact that NVIDIA's entire product lineup is 100% obsolete below a buck ninety and change.
Let's just be honest and agree that "weakening consumer demand" is the equivocal answer to a very important question: "Gosh, how do we explain to our shareholders that we were eight months late to the DirectX 11 party with a low-margin ASIC that's barely faster than its competitor?"
You bring good products to all markets where there is a desire (low and mid range as well), and you sell units. Simple.
Demand is high for GPUs. Gamers are still building and putting the best GPU money can buy inside, and right now, those are Radeon parts.
I think it's too early for NVIDIA to be bullish on their new Quadro cards. They've been on the market for three weeks (all 3 of them).
Fermi was going to change the world remember? Its gonna cure cancer, while giveing us a gaming experience that is so much better than anything we have ever seen!
Comes out, its hot, its a little faster, but not by much at least nowhere near the promise, and general consensus is that you don't get what you pay for.
The rest of the world is catching up with me! Its all as I have forseen.
Seriously though, this is what happens when a technology company gives its marketing dept priority over R&D.
Did they really say this?
Either that or they'll get bought out.
Becoming a great marketer
Nvidia missed the boat by not releasing mid range and low end cards. That is where the bulk of sales are. People just don't want 9800 GTX+ or GTX 260 cards anymore. But than again I am happy with my uber fast 480 GTX's
I don't believe they ever explicitly stated that, but that is more or less what they set out to do with their Tesla boards in the medical segment.
Which perhaps, they should be applauded for.
I asked, because it's not the first time he's made the claim, with the same derisive and condescending tone. There's nothing wrong with exhibiting a preference for a piece of hardware, or indeed the company that makes it, but twisting words for a quick putdown, especially when it relates to an issue of this magnitude seems slightly out of order.
Do I care who wins the war, no. I care who gives me the best for my $200 when I buy said product.
and, Thrax and UPSLynx are kinda biased these days
The GTX 460 is the best you can get for the price and performance wise it is a very nice card.
Not that any of that has anything to do with the topic of this article.
Nvidia has many things that will drive its bottom line up. They don't just make discrete GPU's these days. Yes they let their discrete GPU line slip but just like 5000 series back in the day they will overcome.
Mondi,
Jen Hsun Huang boasted about Fermi's compute performance at Nvidia's GPU Technology Conference 2009, when he specifically referenced the advancements Fermi would contribute to cancer research, and shortly thereafter they introduced compute the cure... Look it up...
Now, thats not necessarily a bad thing, but lets be real, it was to tap dance around the fact that Fermi really is that practical as a gamers GPU. Gamers had to believe that Fermi was going to be the Jesus card in order to sit around and wait for it for months when AMD had the only viable DX11 enthusiast grade gamer GPU on the market in the 58xx series.
Gamers, wait for Fermi... We are going to do things you never imagined, that was the general tone.
As a gamer, I think its fair to say the hype machine oversold the value and power of Fermi a bit. I don't think its unfair to say that, do you?
That's not necessarily a bad thing? Cliff, how is that a bad thing in any way whatsoever?
I looked up compute the cure. Nowhere do they throw out the phrase "We're gonna cure cancer with Fermi". Instead they lay out the goals of a philanthropic program, that through them and their employees has already contributed large amounts to cancer research, from both a monetary and technical standpoint.
I'll repeat, I've got no problem with your passion for ATI/AMD's products, I recognize that they did very well with their DX11 parts. I do however, take issue with your glib misrepresentation of this particular position. It's not big, and it's not clever.
Imagine me saying "its going to cure cancer" with a little added sarcasm.
Sometimes writing does not emphasize the tone.
Anyhow, my point still stands, it was touted as a card that was going to change everything, but is it really that impressive?
I guess for anything Nvidia to mean something to you they would have to push 300% increase over anything ATI had and it would have to be 100% cheaper right?
Also when it comes to the medical space Nvidia's products are breaking new ground with MRI data being read in real time rather than having to wait for results and 3D imaging (as odd as they look) is a next step in a direction that the medical field can really use. I can't comment on ATI in the medical field as they haven't said much or shown much that I have seen, but no matter how you spin it, Nvidia is pushing technology in many places ATI is not. It will only lead for better things for everyone, regardless of the logo or brand.
Thats the sales pitch that gamers are not buying. Listen, its nice its doing great things for MRI imaging, but what should that mean to the enthusiast graphics consumer at home?
This is the point I'm making. Forever now, graphics, when the discussion was levied on the good ole message boards amongst enthusiasts, it has always been about entertainment, gaming, encoding, and practical things like driver quality, and thermal dynamics.
You can't ignore what the home consumer cares about by saying, look at all this amazing stuff we are doing over there!
Thats more or less the point I'm trying to make with the reference about cancer research, its cool stuff, but when it comes to my machine at home, none of that matters. I want to know how I'm going to have the best experience at home, I want something reliable, I want something thats not going to sound like a jet turbine on my desktop while I try and play a round of Battlefield. I want something that is not going to bake the innards of my investment, and I want it available, at a reasonable price, because frankly, thats all its for, to play games, watch and encode some video.
Saying, look at what we are doing in this space and that... Its a creative way to try and avoid the conversation about how impractically hot and inefficient Fermi is for a home PC environment. Its nice that Nvidia thought big and designed an architecture that could lead to amazing advancements, but that means absolutely nothing to the home enthusiast today, and the financial reports reflect that.
I have to admit I'm a little nvidia biased myself so here goes:
I've always hated ati for the exact same reasons nvidia is being hated right now, back in the 90's when it still was ATI they constantly did the same thing. Announcing one card after the other with synthetic benches showing how great it performs, we'd dump our cash into it because we felt sorry for them and then the cards totally sucked.
I'm not going to deny that the current nvidia cards are stupidly flawed(cept the 460 i guess) but I have to defend them a little in the sense that they just launched a few architecture and its bound to suck a while. I think the 460 is kind of proof that something good, affordable, and not requiring a nuclear power plant can come from it.
I also read some interesting comment in another article on the same subject about how nvidia is actually fixing their messes with the faulty products that was shipped as opposed to other companies that would just look the other way.
Finally lets not forget the big picture, every superhero needs a nemesis! If nvidia dies tomorrow ati card prices will skyrocket and pretty soon everyone will be hating on them. Also what incentive would they have to push their tech as hard as they can without competition? The fact that both companies are fighting hard with no clear winner is very good despite setbacks along the way. We, the consumers, are the ones winning in the end in this situation.
re..re..recession. Yeah that's it. I love technology as much as the next guy, but come on Graphics cards are a luxury and with millions unemployed, maybe their last quarter was bad because huge numbers of potential customers are broke? Just wonderin'.
One company grew their market share, shipments, ASPs, revenue and profit during this recession. One didn't.