Support NeoGAF

[Chittagong]

This was released today along with the quarterly results. I believe it's relevant here because Nvidia has been the driving force of PC gaming, but the realities mean gaming is essentially irrelevant now - a monumental change to a community used to get excited about the next XX80 card. This even further lessens pressure on PS6 too.

 

[adamsapple]

They already said as much last year themselves.

Nvidia says they’re not a gaming company anymore as AI drives record-breaking revenue - Dexerto

Nvidia reported another record quarter as AI demand continued to surge, with the company saying it has now shifted from a gaming-focused GPU maker to an AI data center giant.

www.dexerto.com

 

[Gaiff]

AI might be by far their most profitable sector, but they still rake in billions from gaming GPUs and billions of dollars is never irrelevant to any company. The problem now is that AI gobbles up gaming GPUs and RAM.

 

[Durin]

I kinda wonder what Nvidia's plan is going to be when they shrink back down.

The gravy train will end, more competition will erode their first-mover advantage and market-share over time.

AI that was promised for multitudes of use-cases, will over time fall down into best practices for the fewer things it's actually good at. They will likely be less valuable in 5-10 years.

 

[cinnamonandgravy]

I kinda wonder what Nvidia's plan is going to be when they shrink back down.

sit on a massive pile of money and do whatever they want

 

[Chittagong]

sit on a massive pile of money and do whatever they want

Sounds like a joke but it isn't - they made more profit just this quarter than they made revenue in an entire year before ChatGPT.

 

[bitbydeath]

Imagine being Nintendo right now.

 

[Stuart360]

Gaming is a small percentage compared to AI, but they still made 14bil from gaming. A company doesnt throw away that. They will still be making gpu's for the forseeable future.

 

[MCH2024]

This is stupid.

Nvidia makes 16B off gaming with 40% operating profits. (Better than iPhone Margins)

Nvidia gaming is bigger than AMD datacenter (not for long but it's relevant) and more profitable.

We are also saying that the company that has invented the GPU, reinvented the GPU and made almost all the big breakthroughs that define modern graphics doesn't care about it?

But the bozo followers who are commodity maxing are the ones who care? Seriously?

Because of what? Blackwell is Nvidia's most successful generation by a mile and last time I checked they are still selling massive volume and maintaining a total monopoly position on PC gaming.

Rubin was always planned for H2 27. It never got delayed.

RTX 50 Super was always going to be cancelled or introduced as higher cost tiers given how well real gamers reacted to Blackwell. They were flying off the shelfs. Clearly the VRAM FUD didn't work.

Nvidia only doesn't need PC gamers anymore. But we do need them. And GeForce will not abandon a segment this lucrative.

AMD's Consumer Roadmaps are in far more danger.

 

[TheLikou]

Imagine being Nintendo right now.

Why just Nintendo? Sony is as fucked by this if not more since the PS6 is fast approaching.

 

[bitbydeath]

Why just Nintendo? Sony is as fucked by this.

Because Sony uses AMD, which Nintendo may need to change to in future which will mess up their BC.

 

[TheLikou]

Because Sony uses AMD, which Nintendo may need to change to in future which will mess up their BC.

It's not like they don't use RAM, right? AI is just eating everyone.

 

[bitbydeath]

It's not like they don't use RAM, right? AI is just eating everyone.

???
This article is about why gaming is no longer relevant to NVIDIA.

 

[J Required]

From a business standpoint, no one can really blame them. But from a sustainability perspective, they're dangerously exposed to the AI bubble.

 

[Gaiff]

Gaming is a small percentage compared to AI, but they still made 14bil from gaming. A company doesnt throw away that. They will still be making gpu's for the forseeable future.

Morons talk as if they were making a few hundred bucks from gaming GPUs, those are still billons of dollars, which is why you have useless trolls like lh032 or diffusionx reacting with laughing emoji's because they're too cowardly to say anything.

 

[YeulEmeralda]

Inevitably the AI boom will go bust- the smart folks at Nvidia know that too.

 

[efyu_lemonardo]

Because Sony uses AMD, which Nintendo may need to change to in future which will mess up their BC.

Nintendo will change to Qualcomm or some other mobile chip developer and will push for BC.

 

[Cert.in.Death]

Thank god for Nvidia and servicing our endless hunger to transform everything into R34 content.

 

[meliodas]

I guess we still have AMD right? Right???

 

[Cyberpunkd]

I kinda wonder what Nvidia's plan is going to be when they shrink back down.

I'm sure there is no plan. I don't even know if datacenter scaling will be relevant as we move past LLMs (if we ever do).

 

[Zathalus]

Guys, I'm not really sure how to put this, but 16 billion dollars from a sector you utterly dominate in is not, nor will ever be, irrelevant.

Nvidia can spin off gaming tomorrow and the gaming division will still be a fortune 500 company.

Imagine a CEO telling investors they are giving up on a stable, near guaranteed revenue that they dominate in and is still growing. Oh, and it's 16 billion dollars per year.

 

[Cyberpunkd]

Imagine a CEO telling investors they are giving up on a stable, near guaranteed revenue that they dominate in and is still growing. Oh, and it's 16 billion dollars per year.

True, but the problem is their dominant position. So no 5090 super, can treat gamers like shit and it won't matter.

 

[Zathalus]

True, but the problem is their dominant position. So no 5090 super, can treat gamers like shit and it won't matter.

Well yeah, but that we need Intel or AMD to actually try and compete. It's seperate from Nvidia giving up on gaming, which will obviously never happen.

RDNA4 is impressive, and maybe with RDNA5 AMD can claw back market share, but not if Rubin comes out and utterly dominates again.

 

[Zathalus]

Also, using the "logic" some have, Sony should have just seen Playstation as irrelevant in 99 right? It was about 12% of Sonys total revenue? Peanuts.

 

[lh032]

Playstation family always welcomes you : )

 

[SHAKEZ]

I bet they also know that this AI wave isn't going to last forever, they won't ditch the GPU market, it's their anchor.