02-15-2019, 11:12 PM
https://www.tomshardware.com/news/nvidia...38618.html
Quote:Nvidia presented its fourth quarter and fiscal 2019 earnings today, which reflected a surprising 45% year-over-year loss in gaming GPU revenue. Overall the company performed better than expected after it lowered its earnings projections last month, with the $2.21 billion fourth quarter beating expectations and leading to a jump in its share price in after-hours trading (despite the 24% year-over-year loss in quarterly revenue). The company also chalked up a solid 21% gain in full fiscal year revenue.
Nvidia blamed the severe gaming downturn on several factors, including that sales of its Turing RTX 2070 and 2080 graphics cards were below its expectations for the launch of a new architecture. Nvidia opined that gamers might be waiting for more real-world examples of ray-traced games, which were notably absent at the launch of the Turing graphics cards, before purchasing a new graphics card.
Nvidia CEO Jensen Huang also pointed out that, for the first time in the company's history, its newest architecture launched with only high-end models available. The early RTX 2070 and 2080 cards came as specialty high-end and overclocked models that retail well above MSRP, while the lower-priced models didn't make their way to market until months later, leading to stunted sales.
Nvidia also delayed the release of the mainstream RTX 2060 cards due to the oversupply of GTX 1060 cards in the channel, which was largely due to the collapse of the cryptocurrency market. "The inability to launch [the] 2060 was a big inhibitor for us, but we did so at CES," said Huang, citing that these models address the broadest swath of the gaming GPU market.
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Nvidia's gaming segment comprises 43% of its total revenue, so the 45% year-over-year decline is troubling. The company's $1.98 billion in GPU revenue fell 20% on the year, primarily from the declining sales of gaming GPUs, but the company projects revenue to be flat or only slightly down for the full year.