Why Nvidia doesn’t care about gamer GPU pricing

If you're still surprised by GPU pricing, don't expect anything better

Sebastian Kozlowski

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With the recent release of the RTX 4060 Ti, Nvidia is still releasing some of the best gaming GPUs around. But some of the newer ones, like the 60 Ti aren’t flying off the shelves, but it’s not going to be that bothered since it’s not exactly even the biggest contributor and it’s falling.

So as Nvidia’s Computex keynote passes and you wonder why the gaming GPU got sidelined to the week before, we explore what might be the case.

Nvidia’s net income split

Now for the revenue split, we can see where Nvidia’s revenue comes from. For the period of Q1 in the financial year 2024. As you can see below as shown by Motley Fool, the diagram shows how that is all split up and changing.

In total Nvidia had an income of $7.2 billion, which is a vast amount, but even still it has fallen by 13.2%. Likely from the drop in GPU sales, especially as crypto falls away from GPU usage, and a lot less hype and sales from general market trends with not many being able to afford it now.

And you can see the split in that. With gaming down 38.1% now at $2.2 billion, along with professional visualization now at $295 million, and OEM & others at $77 million. But what is now growing and pumping up the numbers is Data Center and Auto, up 14.2% and 114.5% at $4.3 billion and $296 million respectively.

These are growing and providing a bigger share of what the market is after. AI is what’s growing, with the likes of ChatGPT growing and bringing it to public use, its uses are only what is growing. As showcased by Nvidia’s Computex talk, it is the focus as it is a much bigger revenue stream. With so many startups and processing power required, Nvidia has the whole setup you might need to get going. With the Grace Hopper GPU allowing servers to grow so much it’s much more efficient for large language models and increasing what it can achieve.

Gaming market changes and the future

As you can see the drop in revenue from the gaming market it is unpredictable. And even with the best GPUs around, it can’t follow it up. We saw the RTX 4090 sell out on release with great excitement for the Ada series, but that’s not been the case for all of them especially those on a budget that feel like they are left behind.

But that is expected, as crypto mining is what boosted sales of the 30 series that much more significantly. As they were used for mining, they then were sold off in hundreds when the values crashed. As such all that revenue is now dropping in the financial year, and becoming a smaller revenue stream.

And since it is so volatile, Nvidia knows it can’t always rely on it being a stable stream. As such diversifying is more optimal. And we can see that with a focus on AI and self-driving since its GPUs are used for both. And as AI expands and is asked to do more, it sure needs expanding that Nvidia does offer with Grace Hopper and even combining GPU and CPU with the Grace Hopper super chip. It can be combined with plenty of nodes with Nvlink to form a supercomputer all in one.

And by offering more features in that market, they can gain so much more shares in that market and more revenue. As we saw them try and expand upon by trying and failing to acquire ARM. But still, then it offers more software as well as hardware to sell. With the likes of Omniverse and others to get usage for big corporations all in one.

So that $300 GPU you’re after that might have cost $200 a couple of generations ago is not in Nvidia’s mind anymore. And we can only hope for better competition. As AMD and even Intel ARC come out and offer some alternatives that might be better for your usage.