Nvidia Lowers Sales Guidance amid Chipset Flaws

Nvidia Corp., the world's largest supplier of graphics processing units, has issued a warning regarding lower sales during the ongoing quarter. The company blamed issues with its chipsets as well as low prices of graphics processing units for its fiscal results.

According to Nvidia, second quarter revenue and gross margin are expected to be lower than guidance provided during its first quarter financial conference call and be from $875 million to $950 million. The company said that the estimated decrease in revenue and gross margin is due to several reasons, including the delayed ramp of a next generation core-logic set, price adjustments of the graphics processors to respond to competitive products as well as "end-market weakness around the world".

This is the first time in years when Nvidia admitted that it has to lower pricing of its graphics processing units to respond to a relatively successful product launch of its main rival, ATI, graphics product group of Advanced Micro Devices.

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13 Comments

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The 9600 series cards suck to. Black screen errors left and right for all manufacturers. I am not going to discount Nvidia just yet as this is their first major screw up that I can remember. They do need more testing before releasing a chipset that doesnt work well. I got a 8800gts now and it works great.

Let see Radeon HD 4870 sell for $310 and is just about as fast as GeForce GTX 280 which $500+ and if ask me nvida still need drop it like a $100 or more.

(SHS said @ #7)
Let see Radeon HD 4870 sell for $310 and is just about as fast as GeForce GTX 280 which $500+ and if ask me nvida still need drop it like a $100 or more.

Stop spreading FUD. The 4870 does not compete with 280. It competes against 260. 260 has been dropped to $300 levels, to match 4870. 4870 runs about 8000 on 3dmark vantage same as 260, 280 runs about 12000 3dmark vantage. The 4870X2 is meant to compete with 280, but that's not out yet (and will most likely debut at $500-600).

Could say the same to you. He said "just about as fast". The 4870 does compete with the 280, it comes very close at times.

Quote from TomsHardware: Even the top-end card from Nvidia, the GeForce GTX 280 � souped up with more transistors, twice as much memory and higher clock speeds � is not that far ahead. It showed only 13% better performance than the Radeon HD 4870, though it costs twice as much.


The 4870 X2 wont be in the same league as the single 280, it will destroy it. 280 X2 soon? XD

(stgeorge said @ #7.1)

Stop spreading FUD. The 4870 does not compete with 280. It competes against 260. 260 has been dropped to $300 levels, to match 4870. 4870 runs about 8000 on 3dmark vantage same as 260, 280 runs about 12000 3dmark vantage. The 4870X2 is meant to compete with 280, but that's not out yet (and will most likely debut at $500-600).

The problem with 3dmark vantage it is a synthetic benchmarking which dosen't count in my book after all the rigth way to do things is with a per-recorded demo with real world gameplaying from an actual program or game and I for one only look at traditiomal timedemo benchmark.

They already dropped 9000 series prices. They dropped like 100 or so about 15 days. It had to do with ATI releases.

So, competition is only getting better, and we can hopefully see more reduced prices in the near future.

It may be the first time they've *had* to lower prices in years, but it sin't the first time they *have* lowered prices. The ATI 3800 series had the prowess to at least be a threat, and NVIDIA slightly decreased prices in order to maintain their lead position. There was no question the NVIDIA cards were just outright better, and at the lower price they succeeded in keeping their commanding market position. The only arguably bad move they made was releasing the marginally better 9000 series cards at inflated prices.

I wonder what graphics processors are affected by this, hopefully it will not include the GeForce 8 series.

Simply put:

Nvidia been using market share and lack competition to inflate higher prices.

ATI back in game means honeymoon (rip off prices) cannot continue.

Gotta love competition.

This is the first time in years when Nvidia admitted that it has to lower pricing of its graphics processing units to respond to a relatively successful product launch of its main rival, ATI

Nvidia reacts to market forces. Shocking.