This is just DRAM hysteria spiraling out to other kinds of hardware, will age like fine milk just like the rest of the "gaming PC market will never be the same" stuff. Nvidia has Amazon, Google, and others trying to compete with them in the data center. No one is seriously trying to beat their gaming chips. Wouldn't make any sense to give it up.
It's not related to the DRAM shortage. Gaming dropped to ~10% of Nvidia's revenue a year or two ago due to AI and there was controversy years before that about most "gaming" GPUs going to crypto miners. They won't exit the gaming market but from a shareholder perspective it does look like a good idea.
> Gaming dropped to ~10% of Nvidia's revenue a year or two ago due to AI
Well, actually it's that the AI business made NVidia 10x bigger. NVidia now has a market cap of $4.4 trillion. That's six times bigger than General Motors, bigger than Apple, and the largest market cap in the world. For a GPU maker.
Furthermore, I would wager a giant portion of people who have entered the ML space in the last five years started out by using CUDA on their gaming rigs. Throwing away that entrenchment vector seems like a terrible idea.
Took what, four years for PC cases to get back to reasonable prices after COVID? And that’s a relatively low-tech field that (therefore) admits new entrants. I don’t know, I’m not feeling much optimism right now (haven’t at any point after the crypto boom), perhaps because I’ve always leaned towards stocking up on (main) RAM as a cheap way to improve a PC’s performance.
The fact that a case is literally a sheet metal box and can cost $150 is so bewildering to me. All those $400 nas builds like 25% of the cost is literally just the case. CPU might be only $25 and requires an advanced fab lab not just someone with a lasercutter.
If Nvidia did drop their gaming GPU lineup, it would be a huge re-shuffling in the market: AMD's market share would 10x over night, and it would open a very rare opportunity for minority (or brand-new?) players to get a foothold.
What happens then if the AI bubble crashes? Nvidia has given up their dominant position in the gaming market and made room for competitors to eat some (most?) of their pie, possibly even created an ultra-rare opportunity for a new competitor to pop up. That seems like a very short-sighted decision.
I think that we will instead see Nvidia abusing their dominant position to re-allocate DRAM away from gaming, as a sector-wide thing. They'll reduce gaming GPU production while simultaneously trying to prevent AMD or Intel from ramping up their own production.
It makes sense for them to retain their huge gaming GPU market share, because it's excellent insurance against an AI bust.
Yeah, sure, every tech company now acts like a craven monopolist hellbent on destroying everything that isn't corporate-driven AI computing, but not this time! This time will be different!
