Nvidia chief executive officer Jensen Huang said the company is battling “excess inventory” of RTX 3000-series GPUs ahead of its next gen RTX 4000 series, which will be released later this year.
To deal with the current situation, Nvidia will take some drastic steps, including reducing the number of GPUs sold to graphics card and laptop manufacturers, allowing manufacturers to clean up their existing inventory, and lowering the price of current generation GPUs to create more space for next-generation GPUs.
Although the price reductions will be up to Nvidia’s partners, customers will have to expect lower prices for new and used GPUs. Due to the current situation, some RTX 3000-series cards will continue to hang around for a long time after the introduction of the RTX 4000 series.
Nvidia has been hit by a decline in demand for gaming GPUs, partly due to recession fears and partly because a lot of PC hardware was acquired early in the pandemic. Moreover, due to falling prices and the long-awaited transition of Ethereum from GPU mining, Nvidia is selling fewer GPUs to crypto miners.
Due to the decline recorded in various sectors, Nvidia missed quarterly projections by $1.4 billion.